Coca-Cola Enterprises and Diageo GB to bring the nation better drinks experiences

Friday, March 12, 2010

This April, Coca-Cola Enterprises (CCE) and Diageo Great Britain (Diageo GB) are launching their biggest joint campaign to date, working together in a long-term joint initiative to help the on-trade in Great Britain create long, quality mixed spirit drinks all year round. The heavyweight commitment will involve on-trade specific education programmes, jointly developed in-outlet POS materials and consumer marketing, to promote perfect, quality serves across core premium spirit and mixers, using some of Britain's best known brands, such as Gordon's® and Schweppes Tonic, Pimm's® and Schweppes Lemonade, Smirnoff® and Coca-Cola and Bell's® and Coca-Cola.

As major players in their respective sectors, CCE and Diageo GB have committed to supporting licensees to grow and develop the most profitable category in the on-trade [1] - spirit and mixers - and share the same aim to encourage quality drink serves in outlet. On-trade repeat footfall relies heavily on the total positive experience in-outlet, including all aspects of the on-trade occasion, such as quality entertainment, food, drinks, surroundings and staff. To support this total quality proposition CCE and Diageo GB aim to drive great quality mixed drink serves to delight consumers and make it easy for licensees to maximise profit.

The joint business initiative will be activated in over 10,000 free trade pubs nationwide and aims to address poorer quality drink serves with the multi-million pound investment.

The education and sales-driving programme will be implemented by both CCE and Diageo GB's sales teams, who will provide training, 12oz co-branded glasses and a range of POS to stimulate spontaneous choice of spirit and mixer drinks, and in turn, deliver great returns for the on-trade supporting the activity. POS will feature images of each of the four featured mixed drinks, Smirnoff and Coca-Cola, Gordon's and Schweppes Tonic and Pimm's and Schweppes Lemonade and Bell's and Coca-Cola to engage consumers in the long mixed spirit drinks.

The combined overall joint investment for the 2010 UK initiative exceeds £4million. This initiative will be supported by the combined strength of the Diageo GB and CCE sales force resources, industry expertise and is part of continued quality services for the on-trade totalling in excess of £33 million across the two organisations.

The dual branded category approach adds credibility and reinforces the message around quality drinks, which is key for successful pubs, as 37% of drinkers claim they would order spirit and mixers drinks if they were served better [2]. Consumers also want to know how much they will be paying for the finished drink, not the individual parts thereof, which is why CCE and Diageo GB have executed POS clearly displaying finished drink pricing to communicate the value for money message.

Dave McNulty, Trading Director On-Premise at CCE, comments:
"It makes sense for the leading spirit and mixer brands to work together to ensure consumers are getting the most out of their mixed drink experience and offers new opportunities for innovation across these iconic brands. We're confident CCE's joint campaign with Diageo in GB will create greater consumer interest, contribute to category growth and drive sales of the most profitable drinks for licensees."

David Smith, Sales Director at Diageo GB comments: "Spirit drinkers tend to visit pubs in groups [3] and spend more money per visit [4]. Our commitment to licensees is to help them make more money by providing outlets with the ability to serve fantastic finished drinks and delight consumers. Diageo GB's work with CCE will see a great impact on category growth and should also see repeat footfall for licensees."

The on-trade activity in 2010 will be supported by an extensive consumer media campaign for Diageo spirits and Schweppes mixers, including print, outdoor and in-outlet POS, carrying the strapline "Always Better Together." Running throughout 2010, this activity will engage consumers and raise continuous awareness of spirit and mixer drinks, driving further brand awareness and linked association of the iconic brands featured in this initiative.

- ENDS -
For more information please contact Carly Thornton or Simone Harvey on 020 7485 0100 or email carly@mercieca.co.uk / simone@mercieca.co.uk

Notes to editors

• 'Schweppes' is a registered trademark of Atlantic Industries.
• The GORDON'S, PIMM'S and SMIRNOFF words and associated logos are trade marks
• Coca-Cola and Coke are registered trade marks of The Coca-Cola Company
• Spirits can be served in 25ml (one unit of alcohol) or 35ml measures

About Diageo

Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines, and beer categories. These brands include Johnnie Walker, Guinness, Smirnoff, J&B, Baileys, Cuervo, Tanqueray, Captain Morgan, Crown Royal, Beaulieu Vineyard and Sterling Vineyards wines. Diageo is a global company, trading in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE). For more information about Diageo, its people, brands, and performance, visit us at Diageo.com. Visit www.drinkaware.co.uk and Diageo's own global resource www.DRINKiQ.com for information and guidance on responsible drinking. In Great Britain, Diageo is a member of The Portman Group and supports The Drinkaware Trust.

Celebrating life, every day, everywhere

About Coca-Cola Enterprises

Coca-Cola Enterprises Ltd (CCE) is a UK based subsidiary of Coca-Cola Enterprises Inc, the world's largest marketer, producer and distributor of The Coca-Cola Company's (TCCC) products.

CCE manufactures and distributes products for TCCC as well as products for other brand-owners, throughout England, Scotland and Wales, employing around 4,500 people in Great Britain across seven manufacturing sites and a number of regional offices and depots.

CCE is committed to minimising the environmental impact of its products and operations, with a particular focus on sustainable packaging, water stewardship, and energy and climate protection.

CCE manufactures and distributes the following TCCC brands: Coca-Cola, diet Coke, Coke Zero, Fanta, Dr Pepper, Sprite, Schweppes, Schweppes Abbeywell, glaceau, Relentless, Powerade, Oasis and 5 Alive. In addition, CCE also distributes Monster, Appletiser, Ocean Spray (from 2010) and Capri-Sun on behalf of other brand owners.

CCE has the largest share of soft drinks in the UK [5] with on-going brand and product innovation continuing to reinforce this position of leadership within the category. Coca-Cola is the UK's number one selling soft drink [6] and remains one of the most innovative brands in the world today.

[1]AC Nielsen LTI 2008 average retail pricing

[2]TNS Omnibus, 1010 interviewees, Oct 2008

[3]HIM Independent Research Aug 2009

[4]TNS Alcovision On- Trade spend mix analysis spirits and liquor MAT to Sept 2007

[5]AC Nielsen Total Coverage to 31.10.09

[6]AC Nielsen Total Coverage to 31.10.09