Global Brands is the company behind some of the biggest names in the Ready To Drink (RTD) channel, including VK, Hooch, and Shake Baby Shake. We caught up with National Account Manager Daniel McPherson to find out more.
How big is the RTD opportunity for Scottish local retailers?
The RTD opportunity for Scottish local retailers is substantial. The value of alcoholic RTDs in the Scottish convenience market is £39.6m and is outgrowing its counterparts in England and Wales (11.1% compared to 6.6% – NIQ RTD Data 52we 02/11/24). Shoppers in Scottish c-stores are increasing the frequency of purchase faster and buying more RTDs per trip.
How are your key brands performing in the Scottish convenience channel?
Global Brands have experienced strong volume growth of 9.6% year on year. VK and Soopa Hooch are the standout performers with increases in ROS and distribution.
How has Global Brands responded to growing demand for low- and no-alcohol products?
We recently launched VK 0.0%. The launch comes following shifting market dynamics and consumer behaviours. The insights highlight a clear opportunity for retailers to support consumers’ changing needs and tastes, while providing greater choice when it comes to high-quality, fun, alcohol-free options.
How else has the RTD market changed over time and how are your brands adapting?
We have seen huge growth in the Enhanced RTD category, which is why we launched Soopa Hooch.
Shoppers who can afford to are trading up and adding more premium products to their repertoire in Spirit & Mixers and ready-to-serve Cocktails. That’s where our brands such as Shake Baby Shake, be. Cocktails and GATHER Gourmet Cocktails, as well as our Franklin & Sons spirit and mixer cans, come in. However, value remains a priority for shoppers, that is why we are experiencing growth for VK and Soopa Hooch.
How can convenience stores capitalise on the popularity of RTDs?
Range your top-selling products in a chiller/fridge; shoppers are 58% more likely to purchase RTDs if they are ranged in a chiller/fridge (ProQuo AI 2024). If space allows it, try to stock a diverse product range. It’s also important to offer promotions and utilise POS materials – this will help drive rate of sale.
What NPD have you launched recently?
We relaunched Reef with great success. It is now available in 70cl PMP and a 275ml 10 pack.
GATHER Gourmet Cocktails is also brand new: a super-premium range of canned cocktails, available in five flavours. With premiumisation seeing a surge in popularity within the RTD cocktail category, GATHER’s launch is driven by the demand for bar-quality cocktails at home.
We have also added two brand-new flavours to the Soopa Hooch range – Blue Raspberry and Cherry Cola.
What does the future hold for RTDs within the Scottish convenience channel?
The future is bright for RTDs within the Scottish convenience channel. Retailers that embrace the trends, differentiate their offerings, and engage with evolving consumer demands will thrive.
Enhanced RTDs is the biggest category in Scotland and category growth is coming from non-caffeinated products. Continued growth for cocktails is highly likely as more shoppers add them to their baskets.
