Alcopops sales fall for Diageo

Related tags Smirnoff ice Alcoholic beverage Drink Diageo

After three years of successful growth, Diageo's alcopops sales
have decreased the company's financial results have revealed. This
week the company has released a new version of its Smirnoff ice
drink in the US, in an attempt to reestablish the beverage in
drinks market.

Smirnoff twist​ the new version of the company's most successful pre-mixed coctail drink is set for launch this week. The drink comes in four new flavours and Diageo claims that the new drink confirms its commitment to innovative products. The beverage is bottled in what the company describes as " distinct packaging​ which will undoutedly be used to target the fashion conscious consumer. The paclkaging employ a twist design that makes it unique and identifiable.

Innovation and stronger targeting could not have come at a better time from the company. For the first time since the launch of the company' alcopops range, the company has seen a decline in sales.

In the UK for example, where Diageo is the market leader in the sector, sales for its top ready to drink brand, Smirnoff ice fell by 12 per cent in terms of volume, which has translated into a 20 per cent fall in revenue.

Research has shown that in the UK alcopop drinkers are usually price-conscious 18-25 year olds. The increase in sales of WKD the has weakend Smirnoff ice's 80 per cent grip on the market.

John Band, an anaylist from Datamonitor claims that fashionable marketing is the key behind the alcopops sector. It appears that Diageo are pushing even harder with this formula in the US.

But some industry observers claim that there there is only so far that the company can go to increase its sales of FAD drinks.

Related topics R&D Diageo

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