There are ample opportunities for retailers to tap into the RTD trend and the growing consumer preference for high-quality, convenient drinks. 

With flavour and exploration continuing to energise the category, flavoured alcoholic beverages (FABs) such as Smirnoff Ice provide the opportunity to capitalise on this and the increasing consumer demand for more choice. 

Currently the largest RTD subcategory in the impulse channel^[1], FABs have grown in value growth over recent months by +33.8%^[2]. Looking ahead, it is expected that these levels of interest continue as consumers seek out new and exciting drinks for ‘treating’ moments or celebratory occasions. 

Across the off-trade, Diageo’s FABs portfolio is now worth £24m^[3] and it remains a fast-growing segment. Alongside longstanding favourites like Smirnoff Ice Original, Diageo’s FABs range has expanded in recent months with the launch of major flavour innovations such as Smirnoff Ice Tropical.Across the off-trade, Diageo’s FABs portfolio is now worth £24m^[3] and it remains a fast-growing segment. Alongside longstanding favourites like Smirnoff Ice Original, Diageo’s FABs range has expanded in recent months with the launch of major flavour innovations such as Smirnoff Ice Tropical.

Offering on-trend flavours for consumers to explore, Smirnoff Ice Tropical is made with a carefully crafted balance of Soda Water, Smirnoff No.21 Premium Vodka, Mango, Guava and Passion Fruit Flavourings. Continuing to offer flavour innovation in line with consumer trends, Smirnoff has also recently introduced new flavoured vodka, Smirnoff Raspberry Crush. Launching at a time when flavoured vodka is experiencing the fastest growth within the vodka category, having increased +30% vs LY^[4], Smirnoff Raspberry Crush is set to recruit new drinkers through its accessibility, great taste and ability to be enjoyed with friends as part of many delicious, simple and diverse serves.

To maximise a FABs range, consider increasing in-store visibility and bring excitement to your fixture with occasion relevance – for example, consider POS with lifestyle imagery, dialling up key occasions such as the Big Night In and summer sporting events. Improve navigation through segment brand blocking and ensure that FABs – which are generally larger bottle sizes – are placed at the bottom and other RTD subcategories closer to the top of shelves. Keep in mind that the closer to the time of consumption, the more adventurous the consumer is inclined to be – and so drive impulse by always placing in the chiller. Price Marked Pack (PMP) RTDs also offer an opportunity and are growing +42% vs standard +35% and stealing share from standard packs^[5]. 

Smirnoff Raspberry Crush to hit shelves in July

In addition to FABs, retailers should also be mindful of the popularity of premix variants when planning a RTDs range. Within impulse, premix is the second largest RTD category^[6] and so a selection of premix options should be incorporated into ranges where possible.

^[1] Nielsen Scantrack, MAT to w.e 24.4.21

^[2] Nielsen Scantrack 52wks 22.05.2021

^[3] Nielsen Scantrack, MAT to w.e 22.5.21

^[4] Nielsen scantrack mat to 31.10.20

^[5] Nielsen data MAT to w/e 24.4.21

^[6] Nielsen Scantrack, MAT to w.e 24.4.21

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