In RN’s pricemarking feature we asked three retailers to tell us how much they’d embraced on-pack prices in some of the most widely-pricemarked categories in convenience. Now we focus on suppliers – how are they maintaining the level of activity in the following key categories?
It is clear that sales of well-established spirit brands benefited from pricemarking, according to RN retailers. Diageo and Maxxium released some of their best-selling lines with pricemarks, in both across both large and small formats. Diageo’s pricemarked £13.49 Smirnoff 70cl bottle and Maxxium’s The Famous Grouse for £15.49 are just two examples.
Diageo launched a pre-filled 20cl counter top unit last June which is designed to drive sales of smaller pricemarked spirits formats within the convenience sector, encouraging consumer experimentation. The unit contains pricemarked bottles of Gordon’s, Smirnoff and Bell’s (pricemarked at £4.69). Designed to be positioned in front or net to a retailer’s till, the PoS unit is designed to help retailers overcome the barrier to purchase in convenience that often arises when spirits are kept behind the counter.
Carbonated soft drinks
Despite efforts of the spirts industry to provide retailers with more on-pack prices, Maxxium’s brand development manager Andy Sinclair admits the category’s got a long way to go to catch up some others: “the soft drink industry is seeing the most success with pricemarking,” he says. On pack multi-buy promotions are one thing he sees as having a particularly impressive effect.
Sales of Shloer in cash and carries, meanwhile, shot up by more than two-thirds after Britain’s biggest selling adult soft drinks brand was initially offered in pricemarked packs. With Shloer Red Grape and White Grape currently available in £1.69 pricemarked bottles, soft drinks suppliers from both premium and own brand ranges continue to expand into pricemarked soft drinks.
The value of pricemarked cigarette packs in independents and symbol stores is even greater, reaching 59.4% of total volume to date this year versus 54.6% over the same period in 2012. With legislative changes around the corner, BAT says it’s a particularly good time to embrace on-pack prices. “With the upcoming retail display ban, now is the time for independents to show smokers they are providing the best price on all their tobacco products; this will put those who stock pricemarked packs ahead of the crowd,” says Richard Wood, acting head of business development.
As you would expect, more value-centric offers such as Pall Mall, Rothmans Value and the growing roll your own category, account for a higher proportion of the pricemarked pack’s volume. Retailers should also consider incorporating capsule variants into their existing pricemarked ranges to offer the adult consumer the right balance between choice and value.