Blog: What price premium?
Olly Wehring | 22 April 2010
I managed to grab some time with Diageo's chief marketing officer, Andy Fennell, yesterday and a fascinating chat we had too. The fruits of our conversation will be up on just-drinks early next week.
I thought I'd take the opportunity to ask Andy a question that I've been scared of asking anyone in the drinks industry, since I joined just-drinks, for fear of looking, well... a bit stupid.
"What price is premium?"
The term 'premiumisation' may remain a spellcheck candidate on Word, but in our industry it has become ubiquitous with every single one of you. But, how much does a product have to be to qualify as 'premium'?
"The generally accepted definition of premium (in the spirits category) is at the Smirnoff, Captain Morgan price point and upwards," Andy told me. "If you're in the US, you're talking US$10 and up per standard bottle is premium, $20 and up is super-premium and $30 and up is ultra-premium."
Do these levels ring true with your firm? Because $10 per standard bottle strikes me as remarkably good value for a bottle of premium spirit.
Could it happen? According to this report, a section of the beer community wants to ditch the word craft. They prefer instead the term “Indie” for brewers they believe follow the enlightened path of t...
The global elite were in Switzerland last week for the World Economic Forum in Davos, the annual corporate huddle for the rich and powerful. The CEO of The Coca-Cola Co, Muhtar Kent, was there too, de...
With The Coca-Cola Co stealing yesterday's limelight with its new united marketing strategy for brand Coke yesterday, a Forbes interview with PepsiCo North America Beverages' new CMO, Seth Kaufman, sl...
It is a bold attempt to regain a measure of control in the ever-spiraling debate about sugar. But will The Coca-Cola Co's new marketing strategy - which for the first time ties all of the Coke family ...
- Pernod Ricard 's first-half results - Preview
- Pernod Ricard's H1 performance by region - Focus
- Carlsberg's Q4 & full-year results - Preview
- Heineken's FY performance by region - Focus
- Carlsberg's full-year performance by region
- Asahi Group lines up Grolsch, Meantime, Peroni buy
- Diageo completes wine category exit in US
- Pernod Ricard targets US through unit, exec switch
- William Grant & Sons' Ailsa Bay - NPD
- Beam Suntory targets Kenya with Edrington/FIX
- Global travel retail insights - market forecasts, product innovation and consumer trends
- What Next for Beer and Brewers Following the MegaBrew Deal?
- Global Whiskey Market 2016-2020
- Emerging Drinks Industry Trends
- Global sparkling wine insights - market forecasts, product innovation and consumer trends research