Guest Q&A with Janelle Orozco, Diageo – Ready to Drink beverages in cans

Ready to Drink beverages in cans (RTDs) are now a familiar and popular offering on supermarket shelves. We spoke to Janelle Orozco, Vice President of Procurement at Diageo to find out more about the growing popularity of RTDs in cans and how they are engaging with consumers.

We first noticed RTDs in cans a little while ago, but the range is expanding. Can you tell us when Diageo started putting RTDs in cans and what the first one was? 

We began putting RTDs in cans in 1993 with the first variants being Gordon’s & Tonic and Pimm’s for the GB market.  Starting in 2008 we began expanding the range to include new brands, new mixes and new markets.  Various parts of the range are now available in 13 countries in Europe.

Why is Diageo using cans for its RTD range?

Cans are a great format from many perspectives:

• They  provide a format consumers are very used to.  Cans are also highly convenient for a multitude of occasions, whether consumers want to relax and unwind at home, or when requiring outdoor consumption in BBQ´s, parties, etc
• They are easy to store in a fridge
• They get very cold and preserve that temperature very well
• They offer a big surface on which we can deploy branding and consumer messagesThe improvements in printing quality that have been made over the years help to convey premiumness

Why do consumers like them?

We believe the main reason that consumers like pre-mixed drinks in cans is quality, convenience and choice.  Through pre-mix, we offer consumers the possibility to consume their favourite drinks perfectly mixed.  Cans are a highly convenient format since they are easy to carry, easy to store and cool quickly.  Additionally, in the case of informal get-togethers and parties, pre-mix cans offer the possibility to treat every person with their own choice of drinks without having to buy a multitude of spirits and mixers.

The RTD offering has expanded. Could you tell us how many RTDs you offer in cans and which ones are proving the most popular? Is there a particular reason for this?
Our current range has 16 variants spanning great brands like Gordon’s Gin, Smirnoff, Captain Morgan and Pimm’s.  The most popular variants are Gordon´s & Tonic and Capt Morgan and Cola. These are two very popular drink combinations, and that is reflected in the success of the pre-mixed variant.

We’ve seen lots of advertising recently on TV for YesYouCan and the Facebook campaign has had more than 25,000 likes, which is impressive.

Can you tell us a little bit about the campaign and what its aims are?
We wanted to show consumers the effortless style associated with pre-mix cans. We wanted to inspire consumers and show them they could enjoy their favourite spirit and mixer any time anywhere.

Are there any times of year when you see sales of RTDs in cans higher than others? Do you know why this is?

There is normally a peak around Christmas and then in late Spring/early Summer. This is consistent with peaks in spirits consumption and with times of the year when informal get togethers happen more frequently.

To find out more about Diageo visit www.diageo.com/ or join their YesYouCan Facebook page

The Sustainable History of the Can

Recycling has been around for centuries, with modern metal recycling facilities developed in the 1970s on a larger scale. Since then millions of tonnes of cans have been recycled and used, not only for the production of new cans, but other products such as kettles or even busses. Many of us know that the beverage can is the most recyclable drinks pack in the world. Every part of a drinks can can be recycled infinitely with no loss of quality and can be back on shelf as a brand new can in as little as six weeks.

Lightweighting has been a big focus in recent years for the packaging industry. This reduces the amount of materials used in products, and has cost reduction implications when it comes to transporting. For the beverage can industry, lightweighting is not a new phenomenon and, in fact, has been continually deployed for over 30 years. This means it is now possible to produce three times as many cans from the same amount of material as it was 30 years ago. Today, the 330ml tinplate can weighs just 21g; the aluminium can just 10g, with a midwall thickness thinner than a human hair.

Every Can Counts launches in Barnstaple town centre

Drinks can recycling programme Every Can Counts has been launched to shoppers and retailers across Barnstaple town centre.  Working with BID Barnstaple in partnership with Barnstaple Town Council, Every Can Counts is working to improve drinks can recycling in the centre’s 400 retail units.  Barnstaple is the first retail centre in the South West to launch the programme.

Every Can Counts has been introduced as part of a focused green strategy, to demonstrate an environmental commitment, which includes diverting as much waste from landfill as possible.  The programme also fits with the BID civic pride initiative, which aims to encourage both traders and shoppers alike to take pride in their town centre.

Every Can Counts has previously partnered with North Devon Council, Ilfracombe Town Council and Woolacombe Parish council to encourage residents to recycle their drinks cans at Ilfracombe and Woolacombe beaches. Cans are being collected and processed by local community recycling enterprise, Community Resources,  a not-for-profit organisation based in Ilfracombe with a satellite unit in Barnstaple, which  provide meaningful, practical and worthwhile activities for adults with learning disabilities.

Expanding on this partnership, each of the 400 stores and restaurants within Barnstaple town centre have been provided with Every Can Counts recycling boxes and promotional materials to encourage both staff and shoppers to recycle their empty drink cans.

For more information or to start recycling with Every Can Counts visit www.everycancounts.co.uk or read more about it here 

Every Can Counts launches new website to help businesses implement recycling

With many organisations working towards sustainability objectives, including zero waste to landfill targets, research demonstrates that businesses would benefit from greater support to help achieve their environmental goals. In response, drinks can recycling programme Every Can Counts has launched a new online information hub designed to help organisations and individuals increase recycling in their workplace. Recognising that an effective recycling programme combines service with promotion, the new online hub, www.everycancounts.co.uk, provides information and advice on setting up or reinvigorating a recycling scheme, along with communications resources to help with promotion to staff and customers.

 For more information visit www.everycancounts.co.uk/getinvolved/business

 

 

 

 

Q & A: Kate Spencer from Nielsen talks about the beverage market

The Nielsen Company watches the consumer retail market very closely.  We sat down with Kate Spencer , Client Team Leader, The Nielsen Company to find out her latest insights on the beverage market. 

Why are cans continuing to experience a growth in the soft drinks market? 

Total Soft Drinks tend to see growth during recessions as it’s a category that people increase their spend on for home parties and stay home occasions.

Is there a particular soft drinks sector which is showing strong signs of growth and why? 

Glucose and stimulant (energy) as this is a relatively new sector that big players are investing in, lots of NPDs and there is a high consumer demand due to health/sports trends.

Have you noticed any particular pack formats or sizes performing particularly well? Why do you think this is? 

Single followed by multiserve. Singles are driven by the convenience format (both impulse and grocery), which has been and continues to be a high performing channel within Total Soft Drinks. Multiserve has been driven by Squash and Carbonated Drinks. Squash has seen lots of changes over 2011; from the launch of Robinsons double Concentrate to Private Label rebranding their ranges.  Carbonated soft drinks have been heavily pushing the 2L bottle with heavy promotions.

Did sporting events and the summer weather affect soft drink and canned drinks consumption?

This summer we experienced decline in June for the first time following three years of growth, due to worse weather compared to last June (2010).  However we also saw “two summers season” with a peak in May, then down in June & up again in July/August. This has been driven by the strong seasonality of the category.

Overall, how did cans perform up to the end of Q3 2011? 

Strong growth of 10% vs. YA with peaks up to +16% in summer.

How have consumer trends changed in 2011 when compared with 2010? 

As a response to inflationary pressures, shoppers are cutting out small baskets to minimise spend on non essential items and reducing Out of Town to keep petrol consumption down: small and larger baskets are being squeezed. Within this scenario, seen at Total Grocery and reflected in Total Soft Drinks, big trolleys remain the more valuable to Total Soft Drinks, driven by stock up to take advantage of promotions.

Looking ahead, what do you think the trends for cans in 2012, in terms of design, size, etc? 

Multipacks will continue to evolve: if we think 5 years ago it was all about 6 pack and singles, now we have 8,10,12,24,30. Pepsi just launched a 12 mini cans pack. They will dominate on shelf space even more, although we are starting to see promotions shifting from multipack to big bottles (2L). It might be that cross brands strategy will start to be implemented more often vs. new pack formats strategy.

CIWM recognises two BCME funded recycling programmes

November was a busy month for sustainability programme activity. We are absolutely delighted to announce that two programmes supported by BCME: MetalMatters, the programme aimed at improving metal recycling rates from the home, and Every Can Counts, aimed at increasing recycling rates out of the home, were named as finalists in the CIWM Awards for Environmental Excellence.  At the awards ceremony itself MetalMatters was named the winner of the Communications Campaign category and Every Can Counts was a runner up in the Innovative Practice in Resource Recovery and Waste Management category. Recognition from such a prestigious organisation is a fantastic achievement for both programmes and will help push the programmes even further in 2012.

MetalMatters, the kerbside recycling improvement programme, readies for expansion

Alupro has announced that it is to lead MetalMatters, the metal packaging industry’s kerbside recycling stimulation programme, on behalf of its funding partners.

Originally developed by Beverage Can Makers Europe (BCME) in partnership with Novelis and Tata Steel, and supported by WRAP, the MetalMatters programme achieved impressive results in pilot programmes in two local authorities, improving kerbside capture rates for metal packaging.  The programme was named Communications Campaign of the Year at the recent CIWM Awards for Environmental Excellence.

Alupro will draw on its experience of managing the Aerofoil programme, which helped local authorities expand kerbside services to include aerosols and foil containers.  The focus initially will be on developing campaigns in strategic partnerships with local authorities and/or waste partnerships, and developing the funding base to ensure the programme becomes a showcase for extended Producer Responsibility for partners across the metal packaging industry.

As part of this process Coca Cola Enterprises Ltd (‘CCE’) has become the first packer/filler to partner with the programme, along with the UK’s leading foil container manufacturers i2r Packaging Solutions, Nicholl Food Packaging and Coppice Alupack.