Pernod Ricard to push premium spirits

Pernod Ricard plans to push the growth of premium spirits in the UK to match the USA's consumption with the launch of a new on and off-trade initiative.

"Premium Edge", which will focus on education, limited edition packs and display units, aims to push UK consumption of premium spirits from 31% to 50%, as in the USA.

Simon van Moppes, commercial director for spirits at Pernod Ricard UK, said: "The opportunity to trade up confronts us every day in every aspect of our lives."

Van Moppes said the strategic move would focus on four premium attributes: heritage and provenance, quality products, exclusivity and style.

Following research of 4,000 consumers in the last year, Pernod Ricard, which produces Beefeater gin and Jameson's Irish whisky, believes trading up within the spirits category is worth an extra 20% or £6 above the average price, meaning better margins and higher price points for retailers.

Part of the research showed that while consumers believed they could be most easily convinced to trade up on vodka, bartenders felt whisky was the best opportunity to upsell. But on-trade outlets which have trialled upselling on vodka have seen a 50% sales uplift, according to Van Moppes.

The initiative encourages customers to go one better, whether that is on a bottle, case or drink. Under the "make it" banner Pernod is encouraging customers to make premium spirits available, easy to find, compelling and great to drink.

Pernod Ricard plans to drive trial of its premium spirits through its 35 cl range and offer training via its Bar Excellence school, which sees brand ambassadors visit customers to carry out training. It also offers cocktail-making tutorials through its drinkspiration iPhone app.

It will focus on limited edition bottles, display units, brand associations (such as Jameson's cult film club), and upselling in the on-trade, alongside bespoke design for spirits menus, and encouraging pre and post-dinner drinks.