Bacardi Breezer has led the market since the late 1990s following the fall from grace of the Bass brand Hooch, but the brand's apparently endless growth curve appears to have reached a peak.
Pre-Christmas ACNielsen tracked a 6% decline in Bacardi Breezer's value, while the number two brand, Smirnoff Ice, grew at 49%. In addition, Guinness UDV has also used all its weight and category management skills to make the launch of Archers Aqua the most successful in the business.
The combined value of Ice and Aqua in the bimonth to Christmas was significantly greater than Bacardi Breezer.
At the same time Bacardi-Martini's other entrants in the category had a tough time. Metz lost 54% of its value in the period and a repackaging in January may have been its last chance. The company has already admitted defeat on Rigo and V2 and delisted them.
The market leader also has to contend with other players whose strength in the category is growing.
Beverage Brands added Blue to its WKD range last year which helped it put in the top performance in the sector with growth of 258%.
Coors Brewers is building on its stake in the category and as Hooch declines, its still brand Reef continues with rapid growth (up 158%) and is considered by the company as one of its core brands alongside Carling, Grolsch and Worthington.
And with sales up 40% in the Christmas period, Red Square from Halewood also put in an impressive performance, and is the number four brand in a sector worth £68m over the period.
The drive to build market share is becoming more aggressive. Bacardi-Martini's trade marketing director Bruce Ray says the number of PPSs sold on promotion pre-Christmas has risen in the past three years from 35% to 60%, while Breezer has kept its level of promoted sales down to 45%.
"We have put the focus on maintaining the value of the brand and we expect growth to continue across all sectors, not only in the off-trade," Ray says.
Coors Brewers marketing manager Des Johnson reckons Breezer's days as brand leader are numbered. "I don't think it will be number one for much longer and when it loses the spot it will not regain it.
"There is no doubt that Guinness UDV has done a good job in this category. I think Smirnoff Ice has helped the distribution of Archers Aqua in the off-trade."
He has praise too for Beverage Brand's WKD Blue launch. "This was a wake-up call for the industry which showed that a stunning looking product can get results."
Johnson predicts some of the failing brands will disappear from the market this year and suggested that a Smirnoff Ice variant could be on the cards.
He adds: "The secret of success in this category is that you have to have a credible brand with a fantastic tasting product. Smirnoff Mule, Ice's predecessor, was not a particularly good product. Our brand Reef is the best tasting range on the market and will be successful as a result."
Halewood International has carved out its place in the sector with Red Square. Marketing manager Richard Clark says one of the key reasons for its continued growth is the commitment to advertising. In the pre-Christmas period the company spent £3m on TV and poster ads which, he believes, was money well spent. "Red Square can do more and it will continue to grow this year, at least in line with the market and it will be helped by further national advertising," says Clark.
"We are maintaining high levels of distribution and rate of sale and our marketing support is as creative as the premium brands."
He says the addition of new flavours is helping to fuel growth. In the autumn it brought out Purple Ice, with a loganberry flavour and next month it will launch Black Ice, based on wolf berries.
The sector might still be misunderstood by some in the industry, but it can no longer be ignored. It is bigger than cider or champagne and is tipped to outsell premium packaged lager in the near future.
Beverage Brands chief executive Joe Woods adds: "It has changed drinking culture and taken away the need to get used to alcohol because you don't taste it too much in these drinks.
"Young people now choose them because they are easier to drink, fruitier, refreshing and more acceptable. The trick will be to find the next big thing."
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