Diageo reveals small steps to help licensees unlock stronger spirits sales

Almost half of all UK licensees (43%[1]) say they could be doing more to improve their back bar range and maximise sales, according to new research commissioned by Diageo.

With a third of consumers walking into an outlet not knowing which category of drink they are going to order from[2], stocking the right range and making it visible is an essential step that licensees should take to maximise their spirits sales. Diageo’s research, however, has revealed that some outlets are not fully capitalising on this key back bar opportunity to upsell and increase profits.

The independent survey of 500 licensees revealed that over half (56%1) of outlets don’t display the spirits they serve from a speed rail on their back bar; ignoring the vital opportunity to use this space as a ‘shop window’. The back bar should be used to inspire customers and communicate choice and breadth of range, including the best sellers that are poured from the speed rail

The research also revealed that 35%1 of outlets are failing to promote or highlight their premium spirits. This can easily be done by creating a ‘premium pyramid’, on the back bar, with the most expensive spirits within a category on the top shelf. Training staff to confidently communicate the premium range to undecided customers or those looking to experiment is also essential.

Furthermore, over a third (36%1) of outlets don’t double-bank their bestselling spirits. Along with clearing clutter and ensuring that mixers are close at hand, double-banking is an important timesaver to boost staff efficiency and maximise margins.

Clare Moscrop, Senior On Trade Category Strategy Manager, comments: “Licensees’ understanding of the how they can maximise sales is generally high. Almost all of those we spoke to recognise the importance of blocking their spirits by category (87%1) and removing clutter from their workstations (83%1) but our research has also shown that there are a few knowledge gaps that licensees can work on.

“To help bridge this gap, they can speak to our sales force, visit the Spirits Revolution website and consider training with one of our Bar Academy experts to be fully aware of the small improvements they can make to deliver increased profits.

“Our support of licensees is unwavering and we hope they take advantage of our offering and use our advice to grow their outlets.”

For more information on Spirits Revolution, visit www.spirits-revolution.com and for more information on the Diageo Bar Academy, visit www.diageobaracademy.com

[1] Diageo Licensee Research, February 2017

[2] Diageo Omnichannel Research, September 2015