Diageo has announced plans to expand its Spirits Revolution category initiative to now include the off-trade channel. The Spirits Revolution launched earlier this year, encouraging on-trade licensees to inspire, sell and serve more spirits for greater sales. Diageo is now calling for both licensees and retailers to come together to drive overall category growth and capitalise on the estimated £1bn additional sales opportunity available across the category.
Since launching the Spirits Revolution in April this year, Diageo has identified that within the Spirits category, which is currently worth £9bn for the on and off-trade combined (£5.3bn on trade, £3.7bn off trade), there is opportunity to drive a further 11% growth – estimated to be worth £1bn incremental sales across both channels. This highlights that both retailers and licensees have important roles to play in increasing category penetration and average weight of purchase within Spirits.
The company says that its Spirits Revolution has the potential to be mutually beneficial for both channels, with figures showing that if consumers drink spirits in the on trade, they are nearly three times more likely to buy spirits to drink at home. The trend also follows vice versa, demonstrating that regardless of which channel the consumer is influenced in, it provides a benefit for the total trade.
James Cragg, Head of Category Development at Diageo, comments: “The spirits world is changing, and both trade channels can be part of and benefit from this new mixed drink culture. We have identified incredible potential for growth in the category, through increasing penetration and average weight of purchase, across the on and off trade. For example if retailers can get spirits in 3% of baskets or trolleys, rather than the current 2.7%, and if licensees can sell four more drinks per outlet per day, this will drive £770m of a £1bn sales opportunity.”
“To maximise Spirits sales, Diageo will help retailers make it easy and exciting for consumers to buy spirits, with helpful on-going advice to spruce up your category with an exciting range and layout.”
