‘ready To Drink’ Products (Rtds)

‘Ready to drink’ products are known by a variety of names such as:

• Alcopops.
• FABs – Flavoured Alcoholic Beverages.
• PPSs – Premium Packaged Spirits.

 

These drinks are spirit-based and are typically in the 4–5% alcohol by volume (ABV) range. They are packaged mainly in 275ml sized bottles. They are aimed at the 18–24 year olds and a great deal of money goes into promoting them through trendy advertising and label design.

The RTD sector is dominated by 5 or 6 big brands that account for over 90% of the RTD market. The lifecycles of many RTD brands tend to be short ones, being fashionable for a short time then declining as other RTDs become popular.

Overall, the RTD market has declined recently, with the following contributing to its downturn:

• Media backlash, linking RTDs to ‘binge drinking’.
• Duty increases in excise duty on these products.
• Resurgence of cider.
• Popularity of high-energy drinks and vodka combinations.
• Improved promotion of spirit and mixer (over ice) drinks.
• Growth in popularity of wine.
• Introduction of extra cold draught products.

 

That said, the RTD market is still worth a substantial amount of money, (with £ 800m on-trade sales in 2004) and with its target market of 18–24 year olds set to grow by 340,000 by the year 2010, and the introduction of new innovative products, some industry commentators believe that the RTD market will bounce back to former levels.

Maximising Sales Of Rtds

• Keep up to date with the RTD market.
• Focus on the big brands.
• Serve at the correct temperature (see section, ‘Bottle Fridges’ below).
• Display prominently in bottle fridges (see section, ‘Bottle Fridges’ below).
• Ask your brewery, pub company or other supplier to provide you with any POS and promotion kits that may be available.
• Ensure promotions appeal to the 18–24 age group.
• Link promotions to young adult fashion/culture (avoid any types of promotion which may be seen as encouraging binge drinking).
• Use SMS text to promote these products to your young adult customers, using their mobile phones.

Bottle Fridges

Essential Equipment

Bottle fridges (bottle chillers) are essential pieces of equipment for today’s public houses. They chill bottled products and display them enticingly to your customers. Today’s customers prefer many of their drinks to be served colder than in the past. They expect to have their bottled products nicely chilled and will not be satisfied with drinks served incorrectly. Whichever way your bar is laid out you should find ways of installing sufficient numbers of bottle fridges to chill and display your bottled products.

Bottle fridges come in a variety of shapes and styles from single and double door units that fit under your back-bar counter, to taller, upright units that require more vertical space in which to position them. There is also a range of specialist units which can be built into the bar back-fitting.

Temperature

Bottle fridges should chill products to their optimum serving temperature of 4°C. It is important to remember that it takes a bottle from room temperature 8 hours to cool to 4°C. Therefore, fridges must be restocked well in advance of opening for sale. ‘Bottle-up’ (ie restock your bottle fridges with bottled products), last thing at night to ensure that your bottles reach their optimum temperature before you open up.

Encouraging Impulse Purchases

Research shows that many people are undecided about the type of drink they want when they reach the bar. Correctly positioned and displayed bottle fridges provide you with an excellent opportunity to influence these customers to buy your more profitable products. Here are ways to make the best use of your bottle fridges:

• Make sure they correctly chill bottles to 4°C.
• Keep them clean and well illuminated.
• Have your fridges positioned where your customers standing at the bar can see them.
• Display your best selling products on the top shelf of your fridges.
• Display your bottles in banks of 2 to 5 ‘facings’ (ie positioning the same brands next to each other on the shelf horizontally). Allocate more facings to your biggest selling and most profitable products.
• Display similar types of drinks (lagers, RTDs, soft drinks) together in vertical columns in the fridge (eg display your biggest selling lager brand on the top shelf with your second lager brand on the shelf immediately below, followed by your third and fourth biggest lager brands on the bottom shelf).
• Keep your bottle fridges well stocked.