Confidence in the RTD market plunged to a new low this week as market leading supplier Bacardi-Martini confirmed it was axing another brand from its dwindling portfolio in the sector.
Launched in 2001, Martini Spirito has been dropped a week after The Grocer revealed that stablemate Coomira Coast had also run aground.
The cull will enable the company to concentrate on Bacardi Breezer and a top secret new cocktail RTD which is expected to emerge in the next few months (The Grocer, January 17, p50).
Bruce Ray, director of trade marketing at Bacardi-Martini, said: “In view of the state of the
RTD category we have taken a proactive approach to prevent the market becoming saturated with under performing brands.”
News of the failures came as Sainsbury contacted suppliers to announce it was cutting the amount of space given to RTDs.
The retailer’s spirits and RTD buyer, Melissa Draycott, said it was delisting around 15 lines as part of a range review intended to reduce the number of single serve bottles in favour of multipacks and larger 70cl bottles. Admitting the RTD fixture was under pressure from beer, she said: “Because the category is in decline there is a fight for space against beer. We have to be ruthless with the space and drop lines that are performing poorly while being bolder on key lines.
“We have to balance space according to sales, which are clearly linked to profits.”
She said the move would see the least popular variants of brands disappear rather than entire ranges, adding that suppliers had to give lines significant marketing backing to win space in the future.
Rosie Davenport
Launched in 2001, Martini Spirito has been dropped a week after The Grocer revealed that stablemate Coomira Coast had also run aground.
The cull will enable the company to concentrate on Bacardi Breezer and a top secret new cocktail RTD which is expected to emerge in the next few months (The Grocer, January 17, p50).
Bruce Ray, director of trade marketing at Bacardi-Martini, said: “In view of the state of the
RTD category we have taken a proactive approach to prevent the market becoming saturated with under performing brands.”
News of the failures came as Sainsbury contacted suppliers to announce it was cutting the amount of space given to RTDs.
The retailer’s spirits and RTD buyer, Melissa Draycott, said it was delisting around 15 lines as part of a range review intended to reduce the number of single serve bottles in favour of multipacks and larger 70cl bottles. Admitting the RTD fixture was under pressure from beer, she said: “Because the category is in decline there is a fight for space against beer. We have to be ruthless with the space and drop lines that are performing poorly while being bolder on key lines.
“We have to balance space according to sales, which are clearly linked to profits.”
She said the move would see the least popular variants of brands disappear rather than entire ranges, adding that suppliers had to give lines significant marketing backing to win space in the future.
Rosie Davenport
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