by Rosie Davenport
Beverage Brands has pledged to focus on bringing new products to the RTD market after axing WKD Silver.
The supplier said it took the decision to shrink its WKD portfolio to encourage licensees to focus on the better-selling lines Blue and Iron Brew.
Silver was launched in 2002 with a £2m marketing budget, but sales of the brand, whichwas once promoted by model Jordan, have come under pressure from Diageo's rival line Smirnoff Black Ice.
Karen Salters, marketing director of Beverage Brands, said: "Smirnoff Black Ice launched two weeks before us and the mighty power of Diageo is difficult to compete with if you're first in, you're the best dressed."
However, she added that the company was focused on innovation. "If the RTD market is to get back into growth in 2005 suppliers and retailers are going to have to adopt a two-pronged approach fairly radical range rationalisation on the one hand, and putting focus on bringing new products to market on the other. We are continually looking to keep the RTD market fresh through innovation and ongoing product development."
Jason Danciger, the SFI Group's food and beverage director, backed Beverage Brands' decision. He said: "WKD Blue is the only variant that really flies for us. Smirnoff Ice and Bacardi Breezer have cornered the market and there is too much similarity between the other brands. The only variants in growth are the milk-based RTDs although products made with rum or tequila could be the next step."