Beverage Brands

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	Fri, April 24, 2009 CORE – Cider with a WKD side! WKD, Britain’s best-selling RTD brand, is branching out into the cider market with the launch of WKD Core – a revolutionary new 4.5% ABV apple cider which aims to shake up the cider market and bring a new dimension to the highly successful WKD range. The launch marks a new ground-breaking milestone in the 13-year history of the brand as it’s the first time the WKD name will appear on a non-spirit-based product since WKD Original Iron Brew was launched in the UK by Beverage Brands in 1996. Packaged in 500ml green bottles featuring the familiar WKD logo above an ‘Apple Cider’ descriptor, WKD Core is being launched to the trade from early May. WKD Core is aimed at attracting consumers from three key groups: extending usage amongst existing WKD drinkers; lapsed WKD drinkers who still have a strong affinity with the brand; and new recruits who like the personality and humour of the WKD brand but don’t drink RTDs. To support the arrival of WKD Core, Beverage Brands is embarking on a high profile consumer marketing campaign breaking during the summer months. It will include a bespoke national outdoor campaign; press and TV advertising; on-line activity which will spread the word to over 5 million consumers; and more than 100,000 people will get the chance to try WKD Core during the launch sampling drive. In addition to the WKD Core-specific campaign, the new cider brand will also benefit from the halo effect of the £26.5 million marketing spend behind the WKD brand portfolio. Trade support for the launch will initially be focused on awareness and trial-generating promotional activity including POS materials and promotional stock deals aimed at incentivising trial amongst licensees and retailers. POS items such as shelf-wobblers and leaflets providing merchandising advice will be inserted into the 12 x 500ml bottle cases which also feature a message on the outside urging WKD Core stockists to “Please put me with cider”. Further POS materials including drip mats, bunting, bar runners and trims, strut cards and staff T-shirts are being made available to licensees via a combination of the WKD sales team and a free POS Hotline (0800 917 3450). Independent retailers can also obtain kits comprising posters, shelf-strips, window vinyls and wobblers free of charge from the same POS Hotline. Pallet wraps, standees and posters are being supplied to cash & carries to increase visibility in depot. The WKD Core POS campaign is instantly recognisable as it features the renowned humorous personality associated with the WKD brand. Lines such as “Cider. Apples. Core. See what we did?” “Core blimey. Our cider’s good”; “Our new cider is WKD to the Core!” meet all of the expectations of a WKD campaign. Beverage Brands is recommending that WKD Core is displayed within the cider section on shelf and in chillers. Retail price points are anticipated to be on a par with brands such as Magners and Kopparberg, with a 500ml bottle of WKD Core expected to retail at around £3-£3.30 in the on-trade and between £1.79-£1.99 in the take home channel. Explaining the rationale behind the launch of WKD Core, Debs Carter, Marketing Director at Beverage Brands, says: “We see this as a huge opportunity to broaden the appeal of the WKD brand and at the same time bring a new edge to the cider category which is continuing to flourish. Over the past year cider sales have grown by 7% in value2 and 5% in volume3 and the category is outperforming the total liquor market by 9%3. “We believe there is still room for expansion by taking a different approach. Research has shown that there is demand amongst cider consumers for a sweeter, lighter cider drink with a more modern image4. There’s undoubtedly a place in the market for a cider with a WKD side. “With the launch of WKD Core we’ll be drawing heavily on WKD’s brand cues - its unique brand personality and contemporary feel - as well as a different flavour and taste profile to distinguish WKD Core from its competitors. “We’ll be encouraging licensees and retailers to merchandise the brand within the cider category rather than alongside WKD RTDs, and we will be clearly differentiating WKD Core from the WKD RTD range through the style and size of the packaging.” Carter adds: “We’ve had a phenomenal consumer reaction to WKD Core in our research with eight out of 10 consumers saying they’d be interested in purchasing the brand4. We see this as a major step forward in the development of WKD, as we’ll be bringing new and lapsed consumers into the brand as well as capturing incremental sales from existing WKD consumers. “Between 50%-60% of consumers who regularly drink WKD also drink cider, usually on ‘lower energy’ drinking occasions such as during the week or earlier in the evening at week-end before going on to a late night venue. Here, the aim is clearly to get these consumers to stick with the WKD brand on those occasions. “We also recognise that consumers’ drinking repertoires do change and that they eventually move out of the RTD category altogether, but there’s still a lot of affection for the WKD brand amongst these lapsed consumers and we believe WKD Core will encourage them to revisit the brand. “We are also confident that WKD Core will recruit a new wave of WKD consumers as the research revealed that amongst non-RTD drinkers there’s a lot of people who love the WKD advertising and the quirky personality of the brand. WKD Core has a strong appeal not only for them, but also for consumers who prefer a cider which is light and refreshing - qualities associated with the WKD brand.” Carter concludes: “The marketing support behind WKD has given the brand a resonance amongst a lot of consumers. It is a logical progression to take that brand equity into a category which has a similar consumer profile to RTDs and launch a cider with a WKD side.” 1 Source: Nielsen Total Trade - On Trade Audit Value £m and Volume litres MAT to January 2009 & Nielsen Scantrack Value £m and Volume litres MAT 21.2.09 2 Source: Nielsen Total Trade - On Trade Audit Value £m MAT to January 2009 & Nielsen Scantrack Value £m and MAT 21.2.09 3 Source: Nielsen Total Trade - On Trade Audit Volume litres MAT to January 2009 & Nielsen Scantrack Volume litres MAT 21.2.09 4Source: Tangible Branding Ltd. 2009 - ends - For Beverage Brands trade enquiries, please telephone SHS Sales & Marketing on 01242 570 288. Point of sale hotline: 0800 917 3450. The Beverage Brands corporate website is www.beverage-brands.co.uk Beverage Brands is a full member of the Portman Group www.drinkaware.co.uk Press Enquiries: please contact Newshield PR tel: 020 3008 8520 or email: shirley.braithwaite@newshieldpr.co.uk matthew.king@newshieldpr.co.uk

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