Small bottles, big opportunity: What Diageo's latest strategy means for the future of spirits?

Diageo's newly launched retail partnership with Asda is about much more than adding 35cl bottles to shelves, it's a clever response to evolving shopper behaviour - likely spearheaded by ex-Tesco CEO Sir Dave Lewis.

By creating dedicated smaller-format bays across over 230 stores and extending the concept through Tesco and Uber Eats with Smirnoff, Diageo is recognising that today's consumers are increasingly shopping by occasion rather than simply stocking up. Smaller bottles are proving popular for spontaneous gatherings, at home product trialling, gifting and convenience, while larger formats continue to serve for planned purchases The Grocer reports.

For the spirits category, this is an important shift. Pack size is becoming a strategic growth element, not just a pricing decision. The focus is moving towards offering the right format for the right moment, while giving retailers new opportunities to drive sales.

As the market continues to change, we’re expecting more suppliers to rethink how their formats are merchandised and marketed...