Retailers are impatient, set unrealistic targets and are too reserved about trialling new RTD products, according to one of the market’s leading producers.
Beverage Brands - which produces WKD - reckons that although retailers say they want new products, they are either too frightened to trial them until they see how they’re doing elsewhere, or set unrealistically high criteria for success.
“The trade wants instant winners but all of the RTDs that are successful today have not been overnight successes,” said md Joe Woods. “It takes time to seed a brand, regardless of amounts of media or cash and there is very little patience.”
His comments come after Asda and Somerfield revamped their RTD ranges and Sainsbury’s cut back on the number of lines
it stocks. Buyers have admitted that declining sales have forced them to take a tough stance on new products and culling.
Beverage Brands marketing director Karen Salters added: “Sometimes the buyer can’t get their head round the concept of new flavours or understand the flavour, but they’re not necessarily the target market.”
The £1.3bn RTD category is
shrinking, with off-trade sales down 8% (ACNielsen MAT 27 Dec 03). Diageo recently admitted that sales of its Smirnoff Ice brand had fallen by 12% in the past six months, and others had suffered.
Beverage Brands reckons shoppers want more innovation and better signposting in the category. It says there are opportunities for RTD growth through new pack formats, recruiting new drinkers,making more single bottles available and launching new products.
“Although new brands and flavours are crucial to the future success of the category, suppliers should also consider different pack formats, packaging design concepts and merchandising,” said Salters.
Meanwhile, Beverage Brands is backing a Federation of Wholesale Distributors’ plan to improve independent retailers’ RTD sales by offering them a new planogram.
Its latest addition to the Take Home Blueprint portfolio guarantees increased sales by offering advice on stocking recommendations and space allocation for major and local brands as well as own labels.
The blueprint is also backed by other brands such as Bacardi and Vodka Kick.
Helen Gregory
Beverage Brands - which produces WKD - reckons that although retailers say they want new products, they are either too frightened to trial them until they see how they’re doing elsewhere, or set unrealistically high criteria for success.
“The trade wants instant winners but all of the RTDs that are successful today have not been overnight successes,” said md Joe Woods. “It takes time to seed a brand, regardless of amounts of media or cash and there is very little patience.”
His comments come after Asda and Somerfield revamped their RTD ranges and Sainsbury’s cut back on the number of lines
it stocks. Buyers have admitted that declining sales have forced them to take a tough stance on new products and culling.
Beverage Brands marketing director Karen Salters added: “Sometimes the buyer can’t get their head round the concept of new flavours or understand the flavour, but they’re not necessarily the target market.”
The £1.3bn RTD category is
shrinking, with off-trade sales down 8% (ACNielsen MAT 27 Dec 03). Diageo recently admitted that sales of its Smirnoff Ice brand had fallen by 12% in the past six months, and others had suffered.
Beverage Brands reckons shoppers want more innovation and better signposting in the category. It says there are opportunities for RTD growth through new pack formats, recruiting new drinkers,making more single bottles available and launching new products.
“Although new brands and flavours are crucial to the future success of the category, suppliers should also consider different pack formats, packaging design concepts and merchandising,” said Salters.
Meanwhile, Beverage Brands is backing a Federation of Wholesale Distributors’ plan to improve independent retailers’ RTD sales by offering them a new planogram.
Its latest addition to the Take Home Blueprint portfolio guarantees increased sales by offering advice on stocking recommendations and space allocation for major and local brands as well as own labels.
The blueprint is also backed by other brands such as Bacardi and Vodka Kick.
Helen Gregory
No comments yet