Diageo has set a controversial new precedent by printing a recommended retail price on the packaging of Smirnoff Limited Edition Coolers.
The alcohol giant has printed "$14.99 RRP" prominently on the front of the packaging on the wine-based product in a move that some fear could affect the margins of retailers, according to a report in The Shout.
The new wine coolers, which are are available from independent retailers and are sold in packs of four, come in three flavours: Electric Citrus; Berry Fusion; and Passion Twist.
A Diageo spokesperson told Food & Drink Business that this was the first time the company had displayed a price mark on a Diageo product in the Australian market.
“Experience from other markets has shown that price marked packs are increasingly popular with consumers seeking reassurance they are getting value for money. This is particularly true when you bring a new or limited edition product to market,” the spokesperson said.
“Most of our customers have welcomed this initiative and, like us, are eager to see the consumer response to it.
“The decision of final price sits with our customers and any price we suggest is recommended only,” the spokesperson said.
Though its believed to be the first move of its type in the liquor industry, Coca-Cola also recently launched multicoloured 250ml mini cans marked with "$2 maximum retail price".
