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Customers want to be inspired and have an experience they can't replicate at home. They want something new and exciting with great service and quality.
More people spending more on spirits
per day per outlet
up by 50p
per day per outlet
up by £1
With standard spirits performance flat and premium spirits in 9% volume growth the trend of "Premiumisation" is one that is here to stay. To increase value sales in an outlet we need to encourage "Trade Up" to a more premium brand.
Source: CGA on trade report MAT to 28/12/2013
Source: CGA Total On Trade, Average Wtd Price per 25 ml measure 5.10.13
Source: TNS Omnibus Research 2012
of people would buy a premium brand if it was recommended to
of people agree that premium spirits brands are a sign of a
of people agree that they would be willing to pay more for premium
of people agree to be drinking less, but choosing higher quality
when they do
By upselling to a premium brand this could deliver on average an incremental profit opportunity of
£219m Category Sales / 120,000 On Trade outlets
= £1825 - Based on CGA total trade servings and average price
Disclaimer: Bottle price based on 70 cl Diageo
sell in price to MCW +10% on standard and +15% on Premium. Licensee
profit is minus 20% VAT. Prices shown are used as an illustration
and are not an indication of what the price for a spirit should be.
All sell prices refer to a standard 25ml serve, based on Total On
Trade CGA data, Average Wtd Price per 25 ml measure 5.10.13
Encourage Trade-Up, More people spending more on spirits. Focus on Premiums - "Premiumisation" is a trend here to stay. Upselling to a premium brand could deliver an incremental profit opportunity.