Why the anger over Diageo’s mid-strength push is misplaced

Two years ago, The Grocer explored the rise of the nascent mid-strength alcohol segment as part of its annual Britain’s Biggest Alcohol Brands report.

Most of the brands leading the way, the report revealed, were small, independent challengers such as Small Beer, Quarter Proof and 6Percent. As innovative as those products were (and still are), penetration for mid-strength alcohol in stores was low, limited by both a lack of consumer awareness and retailers being unsure where to place products in store.

Two years on, the mid-strength alcohol movement is more well established, with terms such as “zebra striping” (alternating between alcoholic and non-alcoholic products) and “coasting” (switching to lower-abv options over the course of an occasion) more established in the UK’s lexicon.

Retailers, too, have begun to embrace mid-strength, with Ocado announcing in April it had expanded its mid-strength offer by 200% in the past year, while M&S grew its range by 25% as part of a BWS shake-up in May.

Diageo backs mid-stength 

Now the big booze suppliers, namely Diageo, want in on the action.

Unveiling a trio of 20% abv spirit drinks from Smirnoff, Captain Morgan and Gordon’s earlier this week, Diageo said its mid-strength range was “designed to create a new space between existing alcohol categories” and reflected the changing way in which consumers were choosing to drink.

“Health, wellness and affordability” were all driving consumers to drink less, while “earlier, more relaxed get-togethers,” were resulting in growing demand for “lighter, longer serves”, it noted.

“When socialising today, consumers want choice and it’s our job to ensure that our brands offer something for every occasion, including different abv options,” said Diageo chief innovation officer Mark Sandys.

The spirits category’s leading player choosing to extend into mid-strength feels like a step-change for the segment. Diageo could easily have chosen to dip its toes into the category with one of its less established brands, but instead has launched mid-strength versions of three of its power brands in the hope of making maximum impact.

That impact, Diageo hopes, will be aided by a standardised teal colourway across all three mid-strength products, helping shoppers “recognise and navigate a new space within the spirits aisle”. With products launching this week in 250 Tesco stores nationwide, mid-strength is about to become a lot more visible in retail.

Cash grab criticism

Cynics have argued the NPD is no more than a cash grab by Diageo, pointing out the half-strength versions of Gordon’s, Captain Morgan and Smirnoff will retail for only a few quid less than their full-alcohol counterparts, despite facing a far lower duty burden. Why not just buy a normal bottle of Gordon’s and pour a smaller measure, they scoff.

But this argument does not hold up to scrutiny. Not only does it ignore that many of the fixed costs for mid-strength booze (bottles, secondary packaging, transportation etc) are the same as full strength, it also completely misunderstands the reason the products exist in the first place.

The beauty of mid-strength is that it enables consumers to continue their established drinking rituals – such as a double G&T as an afterwork sundowner on a Friday – while consuming less alcohol and feeling better for it. The standout success of spritz demonstrates there is clear consumer demand for lighter, longer serves, so why should we begrudge Diageo for wanting a slice of the action?

Plus, in an environment where consumers’ wallets are increasingly stretched and booze is dropping out of baskets in the weekly shop, Diageo introducing more affordably priced options reduces the chances of shoppers ditching its brands altogether. The same logic explains why the spirits giant is investing behind smaller formats, including fractionals and canned cocktails.

From RTDs to low & no and now mid-strength, having an array of formats across your biggest brands to meet as many shopper missions as possible is just smart strategic thinking.

It’s hard to fathom why Diageo isn’t being commended for such a bold attempt at innovation.