Diageo is to increase “the distribution and visibility” of smaller formats across its portfolio in response to “evolving consumer needs and shopping behaviours”.
The spirits giant has partnered with Asda to introduce new bays dedicated to smaller formats in more than 230 stores. The bays feature 35cl bottles from both Diageo-owned and non-Diageo-owned brands including Smirnoff, Captain Morgan, Gordon’s, Jameson, Malibu and Jack Daniel’s.
In-store media to support the campaign features straplines such as “small bottles make for big plans” and “big possibilities start here”.
Approached for comment, Diageo confirmed the bays formed part of a wider “Small Bottle, Big Possibilities” initiative it had launched, following shopper research that showed consumers were “increasingly looking for formats that fit seamlessly into different occasions and lifestyles”.
The research revealed smaller bottles were seen as “particularly suited to spontaneous social occasions”, and were “typically purchased for same-day consumption,” Diageo said. Larger formats, meanwhile, were “more commonly chosen during stock-up shopping missions for future use”.
As a result, Diageo was “expanding its range of smaller-format spirits across its core portfolio”, while also “placing greater emphasis on the segment within brand and category plans”.
Alongside the tie-up with Asda, further in-store activations were also “underway with additional retail partners, including Tesco and Sainsbury’s”, Diageo added, without giving further details.
“Consumers are looking for greater flexibility in how they shop for and enjoy spirits, and it’s important that our portfolio reflects those changing needs,” a Diageo spokesperson said. “By making smaller formats more widely available, we’re giving shoppers more choice to match different occasions, while helping our retail partners unlock incremental opportunities across the category.”
Smirnoff on-demand push
Meanwhile, Diageo has also applied the same insights to the on-demand grocery channel, with Smirnoff having recently launched a ‘We’ve got a size for that’ campaign across Meta in partnership with Tesco and Uber Eats.
The digital push would help shoppers “discover the right format for a range of occasions and purchase moments”, Diageo added.
It comes as Diageo looks to hit reset under the stewardship of new CEO Dave Lewis.
Lewis, who joined Diageo in January amid a backdrop of declining spirits sales, is preparing to outline his plans to revive the Guinness brewer at its Capital Markets Day in London next month.
Speaking in February for the first time since his appointment, the former Tesco boss hinted at a recalibration from premium spirits towards mass-market brands and RTDs.
“The premium portfolio is a massive asset and we will continue to invest in it,” he said. “But we will also, in addition, explore new portfolio opportunities. That might involve some price repositioning and it might open up new proposition spaces.
“In addition, we need to sharpen our price pack architecture and particularly address the opportunity … in the growth of small packs.”
Meanwhile, the ongoing restructure at Diageo has seen several high-profile executives, including Diageo GB managing director Barry O’Sullivan, depart the business in recent months.
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