Coca-Cola Enterprises and Diageo GB work together to grow spirit and mixer drinks sales

Thursday, April 01, 2010

This summer, Coca-Cola Enterprises (CCE) and Diageo Great Britain (Diageo GB) are working together to launch their biggest joint marketing campaign to date, to drive spirit and mixer sales in the off-trade and grow basket spend. The campaign will headline with some of the nation's most popular spirit and mixer drink combinations with the aim of reminding consumers to consider spirit and mixer drinks for their summer drinks occasions.

As major players in their respective sectors, CCE and Diageo GB are committing more than £4million in a through-the-line campaign to support retailers to grow and develop one of the most profitable drinks sectors [1] - long mixed spirit drinks. The campaign includes significant ATL and shopper marketing activity intended to invigorate purchase of long mixed spirit drinks, and to offer shoppers a great solution for their summer occasions, easily and at great value.

The extensive ATL activity for Diageo spirits and Schweppes mixers will feature on radio, print, outdoor and in-outlet POS, carrying the strapline "Together for a Better Summer." The ATL campaign will reach 95% of the adult population who will have the opportunity to see it an average of 14 times during the summer months.

The heavyweight ATL investment will be further supported in-store by 'Link Save' deals, engaging POS aligned to the ATL and cross-merchandising.

In Grocery, the investment will focus on helping the shopper to buy everything they need for a spirit and mixer drink in one place, through cross-merchandising. This approach offers the retailer a significant opportunity to grow basket spend, as well as offering consumers a better at-home drinks experience with quality brands.

In Convenience, there will be joint visibility in 3,000 structured and independent stores with field sales support, and cross-category merchandising activity with individual customers.

Not all spirits shoppers buy their mixers at the same time, however those who do, spend more on both spirits and mixers [2]. In fact, 80% of spirits baskets do not contain a mixer and 75% of mixer baskets do not contain a spirit, offering enormous basket value growth potential for retailers supporting the activity [3].

With a joint investment on cross-promotions and merchandising of Gordon's® and Schweppes Tonic, Pimm's® and Schweppes Lemonade and Smirnoff® and Coca-Cola, retailers can drive footfall and cement the purchase of both brands in-store, driving category growth and value. Visibility is key to unlocking sales [4] due to the spontaneous nature of at-home occasions during the summer [5]. By linking spirits and mixers in-store, it makes the shopper experience more convenient, encouraging repeat purchase from valuable shoppers which can increase the value of the category.

Craig Smith, Vice President Marketing & Strategic Planning 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. Our work with Diageo offers new opportunities across our iconic brands to inspire consumers to create their own bar-quality drinks at home. We're confident CCE's joint campaign with Diageo in GB will create greater consumer interest, contribute to category growth and drive sales through our in-store activations and strong media campaign."

David Smith, Sales Director at Diageo GB, comments: "Last year, retailers getting behind summer spirits drove £3.4m in additional sales [6] with 500,000 more households buying into spirits over the summer months [7]. In 2010 the World Cup will provide a great opportunity for spirits and mixers, driving at-home social occasions further from June [8]. The World Cup will encourage an increase of at-home drinks occasions in June, and spirits are likely to be consumed in at least 20% of at-home occasions [9].

"We want to see our quality spirits such as Gordon's, Pimm's and Smirnoff served with great quality mixers to ensure consumers can enjoy the best possible mixed drinks at home. Featuring spirits and mixers in-store helps to break down barriers to purchase and increase basket spend so we urge retailers to get involved to make the most of the opportunity."

- 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, BELL'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.

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 [10] 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 [11] and remains one of the most innovative brands in the world today.

[1]AC Nielsen LTI 2008 average retail pricing
[2]Dunhumby 2009, based on Shoppers of Gordon's, Pimm's and Smirnoff Red
[3]Dunnhumby data, 52 w/e Sept 09
[4]A study comparing sales in Grocery mults showed significant gains in sales at the same price point when displayed off shelf with a mixer vs on side track
[5]Over 60% of BBQs are unplanned until the day of the event. Mintel BBQ report 2008, 24-44 year olds
[6]Spirits volume Grocer mults, 12wks of summer 5th Sept 2009
[7]Nielsen Homescan penetration 52wks to 5th September and 12wks to 5th September 2009
[8]TNS Alcovision 2009. Total number of at home alcohol occasions has increased each 'International Football June' vs previous year
[9]TNS Alcovision 2009. Share of off-trade volume (% serves) - World Cup period (June) vs non-football summer
[10]AC Nielsen Total Coverage to 31.10.09
[11]AC Nielsen Total Coverage to 31.10.09