Diageo Introduces Low-Alcohol Smirnoff Source: Spring Water + Alcohol

15/05/07 Smirnoff Source, the new premium malt beverage offering from Diageo North America that combines pure spring water with alcohol is now on beer retailers' shelves and high-end bars throughout the Northeast. At 3.5 percent alcohol by volume (ABV), this new premium malt beverage, with a hint of citrus, has fewer calories and lower alcohol by volume than most popular domestic beers.

Smirnoff Source is the first malt beverage in the U.S. to contain pure spring water and a malt-based alcohol. The beverage is light, crisp and perfectly balanced to deliver the ultimate in refreshing taste. With a suggested retail price of almost $10 for a 4-pack, Smirnoff Source will provide adult consumers with a new choice - an ultra-premium alternative to domestic beer.

"This new lower-alcohol malt beverage delivers to consumers an ultra- premium product with the cache and provenance of the Smirnoff Brand," said Mark Breene, vice president, Diageo Progressive Adult Beverages. "We are creating a new experience for adult consumers with a lower-alcohol product that fits in with today's contemporary adult lifestyle."

Available in a stylish, 16-ounce glass bottle and 16-ounce 4-packs, the packaging, labels and all marketing materials are clearly labeled 'Smirnoff Source contains spring water + alcohol,' as approved by the U.S. Department of Treasury's Tax and Trade Bureau, the federal agency that regulates the alcohol beverage industry and oversees and certifies all alcohol beverage labels in the U.S.

This new beer-based alternative is now available in 15 northeastern U.S. states including Michigan, Ohio, West Virginia, New York, Pennsylvania, Maryland, Delaware, Washington, DC, Connecticut, Massachusetts, Rhode Island, Vermont, New Hampshire and Maine. Source will also begin appearing in nightclubs in Las Vegas, Los Angeles and Miami.

"Smirnoff Source is a new way of thinking about the beer category, " said Guy L. Smith, Executive Vice President of Diageo.

"Smirnoff Source is the first lower-alcohol flavored malt beverage on the market that fits modern lifestyles and offers adult consumers sophisticated new drinking experiences," he said.

"It responds to consumer demand and answers alcohol policy groups' desires to bring a lower-alcohol beer product to the marketplace," Smith said, adding that non-government organizations in the U.S. and around the world have been suggesting that this type of lower alcohol beverage should be made available to consumers of legal purchase age.

"And it's all supported by a responsible marketing campaign that articulates precisely what Smirnoff Source is - and what it is not," he added.

As with all of Diageo's adult beverages, the marketing and promotion of Smirnoff Source is governed by Diageo's marketing code, which is one of the most stringent in the industry.

The launch of Smirnoff Source will be supported by an integrated marketing plan including a new TV and digital advertising campaign in early July and new point-of-sale displays and visuals in stores this month.