Diageo revamps RTD portfolio with PMPs

Apr 11, 2017by Annie Hayes

Diageo has relaunched its UK ready-to-drink range with six price-marked packs (PMPs) as the group looks to capitalise on the £38 million (US$47m) premix category.

The six-strong range comprises Gordon’s Gin & Tonic, Smirnoff & Cola, Smirnoff & Cranberry, Gordon’s & Slimline Tonic, Captain Morgan & Cola and Pimm’s No.1 & Lemonade. Research has revealed that half of all consumers prefer a 'single price promotion' on alcohol in convenience stores, so the new PMPs have been priced at £1.50 to reflect this, replacing the original '2 for £3.00' promotion. According to Diageo, premix sales are growing faster than beer, wine and cider in impulse, with a year on year increase of 14%, and sales of PMP products 50% higher than non-PMPs. The new range will help retailers to tap into the £760 opportunity premix drinks present per year, per outlet, according to the group. Claire Kendall, senior customer category development manager at Diageo says: "The premix trend is being driven by consumers looking for new and exciting drinks to enjoy at casual-get-togethers and parties. "The classic combinations are the most popular in the RTD category within Diageo’s portfolio, with Gordon’s Gin & Tonic being the best-selling variant, and Pimm’s & Lemonade and Captain Morgan & Cola coming in a close second and third. "We’re continually looking to innovate in this space and our new RTD £1.50 PMPs represent an opportunity for retailers to improve positive price perception and ease of shop for customers in the convenience sector." More than 50% of alcohol purchased in a convenience store is for consumption on the same day, while 90% of premix is consumed within two hours.