Allied Domecq is rumoured to be preparing itself for an unprecedented entrance into the lucrative on-trade premium packaged spirits market (PPS).
While Allied Domecq has so far refrained from entering the £400m PPS sector, a recent decision by the company to roll-out its Kahlúa Ready To Go range into a number of multiple grocers following an encouraging trial period has prompted rumours that an introduction into the on-trade is imminent.
The Kahlúa PPS range, featuring Mudslide, B52 and White Russian, has been a runaway success in the United States and although the company could not confirm any on-trade aspirations, it would be a logical next step.
The company has also played down speculation that it is set to capitalise on the on-trade growth of Tia Maria with the release of a new Tia Maria PPS varietal.
A spokesperson said: "A company like Allied Domecq will always be looking at ways of extending the brand, but at this point there are no definite plans to do anything."
According to analyst AC Nielsen, Tia Maria reported growth of 8.5 per cent in the on-trade and currently boasts an 11 per cent share of the coffee liqueur market.