VK shows continued sales growth

11 October, 2018

Global Brands has reported a second consecutive year of on-trade growth in the UK for its flagship RTD brand VK.

According to CGA data, on-trade value sales of VK have increased by 16% since 2016, while volumes have grown 12% during the same period and  generated £54.5m in revenue for venues across the UK in the past 12 months

VK is the biggest selling RTD in the UK on-trade, accounting for 32% of total RTD value sales and 33% of total volume sales, representing a 4% increase in value share since 2017 and 5% rise in volume share for the same period.  

Global Brands attributes VK’s growth to an understanding of younger customers aged 18 – 22 years and despite the decline in RTD category sales (11% in value) in the on-trade, the company predicts further VK growth in 2019.

Global Brands, head of marketing, Jen Draper, said: “Consumers sit at the heart of what we do. We know younger consumers want choice and we’ve responded by continually investing in VK. 

“We now offer seven different flavours and following a huge crowdsourcing competition, are bringing VK Watermelon to market. 

“Keeping pace with consumer demands and responding with innovation drives sales and builds loyalty. Watermelon will help us to sustain growth and boost total VK value sales in the on-trade by about 8% during the next year.”

The company is seeing a trend of rising sales of VK in high street venues, which it believes signifies growth opportunities for the RTD category throughout the on-trade. Around two thirds of value sales of VK are driven through high street venues. 

Draper adds: “RTDs are much more than just a nightclub drink. They’ve got widespread appeal throughout the on-trade, striking a chord with consumers that appreciate their convenience.

“This, combined with category innovation, will drive sales of traditional RTDs and also see an emerging trend of new world RTDs in the on-trade.

“The latter, whether that’s more natural flavours and craft-type packaging, is still in its infancy in the on-trade, but I think we’ll see growth in these premium quality RTDs in bars and pubs similar to what we’re seeing in major supermarkets.”

Keywords: global brands, VK

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