Diageo to raise profile of second string spirits

Diageo GB has streamlined its spirits portfolio in response to an increased demand among pub-goers for premium brands.

A bespoke sales and marketing division has been set-up by the spirits giant to raise the on-trade profile of brands that have previously played second fiddle to the company's household names such as Smirnoff vodka, Gordon's gin and Bell's.

Brands such as Johnnie Walker Black Label whisky (pictured)​, Jose Cuervo tequila, Tanqueray gin and a number of scotch whisky malts will be brought together and championed under a "premiumisation" umbrella.

Richard Wells, Diageo's marketing director for premiums and whisky, said the move was designed to make premium brands more accessible to an expanding group of consumers willing to upgrade from mainstream brands.

"There's a very clear trend towards premiumisation in the marketplace and you can see this not just in spirits but across all sectors," he said. "As well as our core brands, we've got some fabulous spirit brands we believe can expand beyond the niche opportunity and offer licensees the chance to improve margins and create a point of difference."

The new premium range will benefit from "significant marketing investment" and will be promoted in conjunction with Diageo's Every Serve Perfect (ESP) initiative designed to improve the standard of spirit serve and trade knowledge among licensees and staff.

A suggested selection of simple long drinks has been created to help licensees encourage drinkers to upgrade.

"There are opportunities that aren't being tapped," added Mr Wells. "Our research has shown that people are willing to spend better and stay longer when it comes to spirit drinks and we are offering a raft of brands that can meet that demand."

The new premium division, which also includes Bulleit bourbon and Myers Rum brands, bridges the gap between Diageo's core brands and the newly formed Reserve Brands division at the top of Diageo's three-tier hierarchy.

A selection of top-end luxury spirit brands including Tanqueray No Ten gin, Talisker whisky and Gran Centenario tequila from Cuervo as well as the Johnnie Walker Blue Label and Gold Label whiskies will be taken under the wing of The Reserve Brands Group and targeted squarely at the style bar arena.

Mr Wells, who also overseas the Reserve Brands operation, added: "There's clearly a waterfall effect coming down from the style bar sector."