Caffrey's cuts abv
Brand relaunch backed up with POS marketing
Molson Coors UK has cut the abv of Caffrey’s Irish Ale down from 4.2% to 3.8% as part of a new campaign aimed at halting the brand’s sliding sales in the on-trade.
Positioning itself as ‘the taste of an ale, as smooth as stout, cold as lager’, from March 15th Caffrey’s will be backed up with eye-catching point-of-sale marketing driving home to customers the weaker abv.
“Despite declining volumes in recent years the on-trade ale market is big, accounting for one in three beers sold, delivering 5 million barrels a year and worth £3.5 billion to the UK on-trade,” the firm said in a statement today.
Molson Coors UK said the lower strength - supported by a loyalty card offering a free pint (on a separate visit) for every three sold – will allow on-trade customers to “maximise profits” with a reasonably priced premium product.
As the British industry braces itself for yet another 2% above inflation duty hike this month, the strength reduction comes at an appropriate time. No one was available for comment today at Molson Coors on the impact the abv reduction will have on the duty paid on Caffrey’s.
However the Wine and Spirits Trade Association calculates that under current rates, £16.67 is paid for every 1% of abv per 100 litres of beer, meaning a reduction of 0.4% abv would save Molson Coors almost £6.67 per 100 litres.
Launched in 1994, Caffrey’s was the first so-called ‘creamflow ale’ to hit the UK. Based on a recipe dating back to 1897, Caffrey’s is designed to be served at a cooler temperature between 4 and 6˚C.