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Market Update

30 Sep 2006      

Web Exclusive   

Early display is key to boost festive spirit sales

A ‘get them early for Christmas’ message is going out to the retail trade from leading spirits company Diageo, which itself is beginning its £25m seasonal marketing push this month (October) with TV, radio and press advertising for some of its leading brands.

Baileys with mint chocolate and Baileys with crème caramel see trade launch after testing in the off-trade

Andy Adams, trading director for grocery at Diageo, said price promotions would be one element of the festive mix again this year, but this was not the most important issue for consumers. Shoppers, he said, were looking to create the “perfect” Christmas at home as well as looking to buy gifts for friends and relatives. “Getting display early is important,” he said.

He said research showed 10.6m households bought spirits at Christmas and for 75% of them it was the only time of the year they purchased whisky, vodka or gin. As a result, the opportunities were there for retailers and brand owners to encourage consumers to trade up to more premium products. Adams said the average spend on spirits at Christmas was £36.20, but premium consumers spent £39 and consumers who bought into Diageo’s premium spirits spent £41.

Pre-Christmas activity for the leading Diageo brands includes the national off-trade launch of the Baileys with a hint of mint chocolate and Baileys with a hint of crème caramel variants, which have both been tested in the off-trade and through retail travel outlets over the past year.

The launch of the flavours is being backed by a £2.5m campaign, including TV advertising in November. The main activity on Baileys Original comes during December with a £5m TV ad push.

Diageo is backing Smirnoff Red vodka with a £1.4m multi-media advertising campaign and an on-pack competition on 500,000 bottles of the leading spirits brand. Around £2.5m will be spent on Gordon’s Gin, including a new TV campaign and sponsorship of Gordon Ramsay’s Kitchen Nightmares programme, while £1m is being invested in a TV ad campaign for Pimm’s Winter.

For the first time at Christmas, an off-trade specific TV ad will sprearhead the Guinness festive push as part of a £7m seasonal spend. The Fridge commercial will be screened in November and December.


To see more articles associated with the category Product category: Alcoholic drinks click here

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