Home' National Liquor News : NLN APRIL 2018 Contents 30 | APRIL 2018 NATIONAL LIQUOR NEWS
genuine provenance and craftsmanship, perceived as delivering a more
interesting flavour profile.
“Under-35s in particular are highly adventurous in their tastes – eager to
explore categories and discover new tastes at an accessible price point.”
She adds that with the spiced rum in particular Vok is helping bring key
consumers into stores for retailers. “Spiced rum drinkers are young, single,
well-educated inner-city professionals with high incomes. They have a high
discretionary income and are generally big spenders on socialising.”
So with RTDs being a category that is back in good health, what can
retailers do to make the most of this re-growth?
For James Johnstone at SouthTrade there are a number of simple
checks and double checks that retailers should be carrying out in order to
make the most of the RTD growth.
He recommends that retailers double check stock on floor levels
against in fridge displays, double check promotional frequency and the
visibility of focus SKUs and also double check the visibility in-store, so
checking fridge stickers, posters, bollard covers, security gate covers and
flood decals, and so on.
Although in many ways this may seem elementary it is still an
important part of the retailing process and is now definitely something
that should be done with RTDs in mind.
As such SouthTrade has had a simple philosophy for driving its growth in
RTDs, and it is one that should ring true for retailers as well as producers.
“Innovate, innovate, innovate. If you stay still in a volatile market and
just continue doing the same old things, even with new SKUs, you will
struggle in such a competitive RTD market,” Johnstone says.
Letchford also has advice for retailers on how to make the most of
the category and he agrees with Kerr’s point that opportunity lies in
“There is a lot of opportunity in leveraging the impulsive nature of the
category to build shopper baskets.
“Shoppers are more likely to buy premix than any other category
impulsively when in stores, as an unplanned purchase. As such, there is a
great prospect to interrupt a shopper in-store whose primary purchase is
beer or wine and have RTD added to their basket.”
He adds: “Beyond that there are some very interesting promotional
mechanics happening out in the market; new ways to reward shoppers,
driving trial and adding new things into their repertoire is a really great
“That can be mechanics like mixed single promotions, or spend X
amount and get something new to try, single bottle ‘try me’ deals. There’s
also digital couponing where people who have signed up to a loyalty
program with a retailer are served bespoke promotions based on their
Another thing that all the producers agree on is that RTDs offer
consumers the perfect at-home experience with the premium drinks being
enjoyed as they are supposed to be enjoyed.
Habenschuss says: “Beenleigh has been perfecting rum in Australia for
133 years, exploring that perfect take home serve. Now we’ve discovered
the perfect serve for consumers seeking a craft Australian-made rum at an
accessible price point.”
Letchford agrees that it is about offering consumers the best
“At Diageo we always come back to great drinks experiences so we
look at anything that we can do in a store to enhance the experience of
the consumer, things like a Pimm’s jug, a cooler, something that can help
the consumer to have a great experience at home.
“Our focus into the future will remain on the areas where we have seen
success recently, which is continuing on lighter refreshment, our focus on
gin, which is seen through Gordon’s and Tanqueray and the segment of
premium premix and the opportunity that provides us.
“We are a company absolutely focused on great drinks experiences and the
RTD category originated out of exactly that: a perfect serve, made for you, in
a convenient format. RTDs are made for consumers as the maker intended.”
Kerr says that with RTDs playing an important role within the
industry as a whole they will remain a strong focus for the company and
so retailers can have confidence in support from Brown-Forman.
“We know that RTD remains the primary way to recruit the next
generation of legal age drinkers into our brand and the category, so building
our presence at events will place Jack Daniel’s in the hands of millennial
consumers where they’re having experiences and thus building memories.
“In the last year we have cemented Jack Daniel’s as the most valuable
RTD trademark in Australia. Jack Daniel’s RTD has outperformed the
category over the past 12 months, with value +5.3 per cent and volume
+1.5 per cent, versus the Bourbon and North American whiskey RTD
market at +1.6 per cent and -0.6 per cent respectively.
“Our promotional plans for the coming year are focused on inspiring
and exciting consumers by reinforcing what makes Jack Daniel’s so
special, and that’s our home place – Lynchburg, Tennessee. In-store,
we’ll be leveraging this to tie Jack Daniel’s RTD to occasions where RTD
is most relevant for consumers, including barbeques over summer and
social gatherings over the festive season.”
So, with a category once again enjoying growth and attention from
producers, retailers can have confidence that there is an opportunity
to make the most of RTDs. The opportunities lie with key consumer
groups and the impulsive purchase elements of RTD shoppers and
retailers can once again find scope to drive margins and growth through
“WE ARE A COMPANY ABSOLUTELY FOCUSED ON
GREAT DRINKS EXPERIENCES AND THE RTD
CATEGORY ORIGINATED OUT OF EXACTLY THAT: A
PERFECT SERVE, MADE FOR YOU, IN A CONVENIENT
FORMAT,” DREWE LETCHFORD, DIAGEO AUSTRALIA.
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