GuinnessUDV shows that big brands make you big bucks.
Why is having the right range of spirits and RTDs (ready-to-drink brands) important for my business?
Ready-to-drink is the fastest growing category within the alcoholic drinks market - growing at over 30 per cent across the on-trade today.
Companies like GuinnessUDV are investing significant above-the-line spend - with investment of £35m behind Smirnoff Ice and £20m to support Archers Aqua this year.
Your customers will be happier and you'll make more money if you build a drinks offer that achieves the following objectives:
- Tailored to suit your outlet type and customer profile
- Maximises efficiency
- Reduces stock holding
- Improves the quality perception and customer confidence in your outlet
Research has shown that 40 per cent of RTD consumers will swap to lower margin products if their favourite RTD brand is unavailable (see main picture for more information). By stocking the biggest brands you will ensure you maximise your profit opportunity.
What's the size of the prize?
Effective range and merchandising can increase spirits turnover by between 12 and 30 per cent (Source Guinness UDV testing 1992-2002).
What RTD products should I have in my range?
You can keep up-to-date through the trade press and find out what new brands are being launched, what current brands are doing and who's spending heavily above-the-line to drive consumer demand.
It is important to stock the biggest selling brands, as this is what customers are demanding. The top three brands currently account for over 75 per cent of the total category volume.
How do I decide what spirit products to display in my outlet?
The same principles apply to spirits where Smirnoff, Bells, Gordon's and Bacardi make up 40 per cent of the total on-trade spirits sales.
- Identify the spirits range that matches your outlet and customers. In order to decide your range look at your weekly sales by product and identify the spirits and RTDs that you sell in low volumes and those that you sell in high volumes.
Remove any slow selling lines from Optic. Space created by removing slow selling lines can be used to create more efficient work areas and will deliver more profit from the retail selling space available as focus can be placed on impulse brands.
Identify the spirits that make you the most money, and you sell the most of. Concentrate on these spirits and use our merchandising principles (in next month's edition) to help you make the most of your back-bar.
Now watch your volume and profits grow!