Home' National Liquor News : NLN FEB 2018 Contents NATIONAL LIQUOR NEWS FEBRUARY 2018 | 67
WHAT WERE THE HIGHLIGHTS FOR
DIAGEO AUSTRALIA IN 2017?
Bundaberg Rum is back in growth and
winning global awards like Best Dark Rum in
the World at the World Drinks Awards for the
second year running.
The premix category is back in growth, driven
by strong innovation such as Bundaberg Lazy
Bear, Smirnoff Pure and Pimm’s Sparkling Cup.
We continued our partnership with
Masterchef and Matt Preston that taps into
the resurgent and vibrant spirits culture in
Australia. The partnership leverages the
consumer trend of people drinking more
premium products in lower tempo occasions
and the growing trend of entertaining in
Our Reserve portfolio is performing
well and our industry leading World Class
bartending competition again demonstrated
the outstanding talent of Australian bartenders
with Australian winner Andrea Gualdi
making it to the top four in the global finals
YOU HAD A BIG PUSH ON
BUNDABERG IN 2017. HAS THIS
HELPED TO REVIVE THE BRAND?
Bundaberg Rum is our biggest brand and
I’m proud of the work the team has put in to
reinvigorating this iconic brand, leveraging its
incredible heritage and the quality of the liquid.
In 2017 we launched a major creative
campaign for the brand, the first in a decade.
The feedback from the industry and Bundy fans
has been overwhelmingly positive and we’ve
got new creative launching in early 2018.
Bundaberg Lazy Bear continued to drive
premix category growth and we were delighted
to win New Product of the Year at the ALIAs.
Bundaberg Rum Solera again won the Best
Dark Rum in the World at the World Drinks
Awards for the second year running. Our team
in Bundy is extremely proud of this global
recognition and understandably so. It’s great
recognition of their commitment to producing
Australia’s best rum.
Bundy will continue to have a huge year in
2018 celebrating its 130th birthday, continuing
its NRL partnership and welcoming more than
75,000 visitors to its distillery, an award-
winning tourism experience that’s become a
must-do for anyone visiting the region.
WILL THERE BE MORE INNOVATION
FROM DIAGEO IN 2018?
Absolutely. The premix category is back in
growth and Diageo has been instrumental in
driving this growth.
Innovation is a key driver of growing the
at home occasion and we’ve had wonderful
support from our retail partners. Looking at
the success of Bundaberg Rum Lazy Bear and
Smirnoff Pure, consumers are telling us we
are on the right track and we believe this is a
crucial segment that will unlock future growth
in the spirits category.
In the lead-up to summer we started rolling
out Pimm’s on Tap in the on-premise and we’ve
had fantastic feedback already from customers.
Pimm’s on Tap is a great example of excellent
innovation driven by strong consumer insights.
We’ve just launched Tanqueray and Tonic,
a premix innovation I’m really excited about.
The liquid is sensational, the packaging is
fantastic and it’s a product that is going to help
premiumise the premix category.
WHAT DO YOU SEE AS THE COMING
TRENDS FOR 2018?
Australian consumer tastes are changing and
this has driven demand for drinks that are
lower in sugar or lower in alcohol. Some
of this demand is driven by macro trends
around holistic living and wellbeing with
consumers looking to drink better, rather
than more. They’re seeking lighter and more
refreshing tasting drinks that are perfect for
daytime casual get together occasions.
While low- to mid-strength premix accounts
for a relatively small proportion of Diageo’s
total premix portfolio, it’s the fastest growing
segment within the category. We expect the
importance of this emerging segment will
continue to grow in line with demand for these
types of drinks in other categories.
Resurgent interest in cocktail culture will
continue to underpin the future growth of
spirits. We’ll unlock opportunities for spirits
in the at home occasion by de-mystifying and
simplifying simple mixed drinks. An example
of that is the Matt Preston partnership, a key
influencer who is demonstrating just how
simple it is to serve up simple mixed drinks
to your friends and how to match them with
the food you serve. This will be amplified
and supported through our media and retail
WHAT ARE THE KEY ISSUES YOU
THINK THE INDUSTRY SHOULD BE
DISCUSSING IN 2018?
Responsible marketing of our brands and
promoting responsible consumption are
two of the most important issues we face
as an industry.
We’ve been seeing cultural change in the
way Australians consume alcohol for some
time now, with overall consumption trending
downwards and a 47 per cent decrease in the
number of Australians drinking regularly. As
alcohol producers we all have an obligation
to do everything we can to continue these
positive downward trends, and tackle
alcohol harm and misuse in our community.
Continuing our partnership with DrinkWise
is also important to maintaining this trend.
Diageo recently launched one of its biggest
responsible consumption initiatives ever
with Drink Positive, a global campaign that
promotes moderation and a positive drinking
DAVID SMITH, MANAGING DIRECTOR
LAUNCHED ONE OF ITS
INITIATIVES EVER WITH
DRINK POSITIVE, A
GLOBAL CAMPAIGN THAT
AND A POSITIVE DRINKING
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