An over cautious approach to the emerging premixed spirits sector cost Safeway millions according to research it carried out with Bacardi-Martini.
Like the other major multiples it took heed of public outrage over alcopops three years ago, curbed promotions and limited the range. Since then alcopops have moved on and the premixed spirits category has rapidly expanded.
Safeway remained cautious and consequently its performance was consistently poorer than the competition.
Bacardi-Martini has led the way in the sector with Breezer, V2 and Metz. It approached Safeway with a proposal for a category management partnership. Safeway's category buying manager Glenn Payne said: "We were undoubtedly missing a trick so welcomed Bacardi's expertise."
A key reason for poor performance was the wrong mix of single bottles and multipacks. Safeway did not have any singles.
Commercial development manager at Bacardi Jeremy Paris-Jones said: "The single bottle is still very important as it recruits drinkers."
At the end of last year a trial was set up and Paris-Jones proved his ideas worked. His trial layouts outperformed Safeway's by 36%. Price promotions increased the performance further. Payne said: "Applied across the estate this would be worth several million pounds." Paris-Jones said: "Simple remerchandising, adding the single bottles and promotions have shown Safeway the opportunity."
The multiple is now changing the fixture through its estate and is increasing the space given to the category by two shelves.
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