Diageo invests in new low-sugar Archers RTD range

Diageo has announced it will be investing £4m in a new RTD brand, despite falling category sales.

Archer's Vea is a low-sugar RTD aimed at women aged between 21 and 30 and will be launched in wildberry, tropical and apple flavours.

Jayne Sutcliffe, marketing manager for Archers, says research done by the drinks giant showed there was a gap in the market for a low sugar, refreshing product. "Feedback from female consumers showed that they wanted something sophisticated and refreshing and Vea fills this niche," she said.

She also rejected concerns that the RTD category was dying a death. "This category is still worth over £1bn in retail sales," she said. "Diageo has RTD brands like Smirnoff Ice that are performing well and we are convinced that people are going to love Vea."

Diageo has been developing the product for the last 18 months, testing it on consumer panels as well as charting the success of similar brands launched onto the Australian and South African markets.