Pernod Ricard UK has plans to develop itself into an “digital expert” for the grocery channel as part of a new UK-wide strategy.
The company is aiming to offer digital solutions, such as QR-activated apps that can be tailored around a retail partner’s activity. It is planning to roll out enhanced QR content on its range, with links to competitions, food and drink matching, serves and responsible drinking.
The company has already worked with Asda on a Malibu QR campaign that directed the shopper to specific purchases, and developed its white Wimbledon Jacob’s Creek bottle for Sainsbury’s. The brand has also launched its Sipstor online boutique, an e-commerce site offering access to some of the less widely available brands.
“We were first to market with our premiumisation and premium-edge strategy four years ago – but most people are talking about it now, so we need to evolve that to differentiate ourselves”
Denis O’Flynn
“A lot of people are talking about it but no one in the drinks industry is taking the leadership,” UK MD Denis O’Flynn told The Grocer. “We’re talking with key players to see where their strategy is and so see how we can dovetail with that activity. There are no barriers to what you can do.”
There will be a greater emphasis on growing “premium plus” drinks in the off-trade, O’Flynn said. “This accounts for 44% by value in the on-trade, but in the off-trade this is only 22% of value. There is an opportunity to move this up and bridge the gap. ”
The drinks company has spent six months reviewing its strategy to create greater differentiation between itself and its competitors.
“We are already the world number-two premium spirit company – but there are currently a number of players in the UK market place who are within touching distance and we wanted to create clear blue water between us,” O’Flynn told The Grocer. “We were first to market with our premiumisation and premium-edge strategy four years ago – but most people are talking about it now, so we need to evolve that to differentiate ourselves.”
‘Star brands’
The company is also focussing on developing three of its drinks into ‘star brands’ and will spend over a third of its total marketing spend on Chivas, Campo Viejo and Jameson over the next financial year.
O’Flynn told The Grocer the “disproportionate” investment would help the three drinks “break out from the pack”.
There was an opportunity to increase understanding of blended Scotch and Irish whisky as well as growing Jameson’s market share outside the core Irish whisky drinker, he added. These currently account for 70% of sales, but O’Flynn wants to appeal to a younger, urban demographic. “This 30% is the future of the category. We want to improve the equity and understanding of the Jameson brand to flip those figures,” he said.
The significant investments in Campo Viejo, which has seen value growth of 25% on volumes up 21% [AC Nielsen off trade 16 weeks to 12/10/13] will result in “different expressions” of the signature Reserve range.
NPD
However Pernod’s NPD programme is seeing a step change with the introduction of a new seeding fund to promote a more strategic innovation process, O’Flynn revealed.
“We have four or five products ready to go, but we are purposefully not rolling them out,” he said. “The danger is that people get excited about NPD… but while generating ideas is straight forward, it is about how pragmatic and strategic those ideas are.”
However, O’Flynn added that it would continue to develop brand extensions and limited editions.
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