Diageo's new RTD is something of a gamble. Other recent launches into the RTD market have failed because they do not offer anything new to the consumer. Diageo is using wine as the base for its new drink, to target both the need for novelty and the need for sophistication, and may be able to attract jaded drinkers.

Although the failure of Gordon's Edge suggested that the ready-to-drink (RTD) market for bottled alcopops had reached saturation, Diageo is betting that its new take on the idea will meet with success. Diageo's has created an RTD that is based not on spirits, but on wine. Launched under the highly successful Archer's brand, Archer's Eden, a mix of sparkling wine and fruit schnapps, will probably be aimed at 18-30 year old women.

The UK RTD market is largely female oriented (the two main exceptions being Smirnoff Black and WKD). The rise of on-trade female drinking over the past ten years is a trend which has had a profound effect on the British pub, bar and nightclub scene.

Consumers nowadays are searching for novelty in their on-trade experiences. The launch of a wine-based rather than spirit-based RTD may be sufficiently innovative to persuade consumers to give it a try. On the other hand, if Diageo fails to emphasize the novelty of the product, it may suffer the same fate as Gordon's Edge and simply not engage the enthusiasm of the target market. One aspect that may help is the growing popularity of wine. In particular, consumer perceptions of wine as a sophisticated and mature drink may attract aspirational consumers who wish to differentiate themselves from the crowd.