03606414 | Wigglesworth House, Fourth Floor, 69 Southwark Bridge Road, London, SE1 9HH, UK. You can see how today’s RTD cocktails might differ from those of the past by the artisanal emphasis of the recent RTD cocktail startups. Once predominantly focused on the younger market and value offerings, the ‘ready-to-drink’ (or ‘RTD’) category has undergone a resurgence, with lifestyle-led launches, diverse new product development, and carefully styled packaging. We think we’re right on the cusp of it.” This report covers on- and off-premise sales of RTD premade alcoholic beverages, including: Flavored malt beverages – includes prepared malt beverages such as Bud Light Lime-a-Rita; Prepared spirits-based cocktails – drinks such as Bacardi Classic Cocktails Mojito that are made with distilled spirits We’re committed to your privacy. Seems a bit strange, right? “In early 2019 we saw popularity of cans early,” says Burns of Austin Cocktails, “and knew we had to expand our offerings to single-serve cans.” Perhaps buoyed by the rise of hard seltzers, canned cocktails are now essential products for retailers to carry. The growing preference for RTD cocktails by millennial in developed countries and the easy availability of these products in the market is driving the growth of the RTD alcoholic beverages market. In its partnership with OTR, both companies have taken advantage of Beam's premium liquors and collaborated to create premium RTD cocktails, including Knob Creek Old Fashioned and Cruzan Mai Tai. “These offerings are lower calorie and lower sugar alternatives to other RTDs and often compete with hard seltzer,” says Paquette. In fact, Paquette recommends that retailers stock vodka-based RTDs to supplement vodka inventory, given the category’s success. But like craft beer and kombucha, this trend has been brewing for some time. The products experienced a 7% aggregate compound annual growth rate over a five-year period that encompassed the … However, we’re seeing an emergence of pre-mixed cans featuring both premium quality spirits and mixers. You may unsubscribe from these communications at any time. “The RTD category has grown from less expensive offerings made with artificial ingredients and neon colors to cocktails made with natural flavors and premium spirits,” says Kelly Gasink, the other co-founder of Austin Cocktails. In fact, the ready-to-drink space is boosting sales across all alcohol beverage categories, with the emerging malt-based cocktail segment leading the pack in growth. According to Neilsen data, the sales of beers, RTDs and ciders haven gone up by 52% in the USA, with a lot of this growth being driven by the hard seltzers. But the ready-to-drink realm isn’t just for cocktails. Before Covid hit, year-over-year off-premise growth was just 21.5 percent for the 52-week period ending February 29. “The gender demographic skew of the RTD category is similar to that of the hard seltzer category,” says Paquette. “As RTD brands position themselves as direct competitors to hard seltzer, the category has the opportunity to gain significant share in coming years,” says Paquette.Though the first hard seltzers were only released a few years ago, already the category accounts for 4 percent share of all sales on Drizly. Without the recent evolution of RTD cocktails, though, it’s unlikely that the category would have benefited from these new consumer purchasing preferences.Today’s RTD cocktails have come a long way from decades-old predecessors like wine coolers and malt-based hard lemonades. Comprising a variety of premixed boozy beverages, the RTD category, largely dormant since the 1980s, has sparked an arms race as beverage corporations rush to acquire hard seltzers or launch canned or bottled cocktails. Even as states have begun to reopen restaurants and bars, RTD cocktails lead growth across all spirits categories, with Nielsen reporting 91.8 percent growth from May 31 to June 27. These recreate authentic tasting serves of popular drink… When it comes to generations, Nielsen said that young adults are moving towards RTD cocktails at social gathering and outdoor activities. Sales of RTD cocktails in the U.K., for instance, were about 2.6 times greater than in the U.S. in 2016, according to Euromonitor. Pre-Mixed/RTD Alcoholic Drinks Market Introduction: Alcohols consumed in dilutions, with a mixture of fruit flavors and other drinks have been popular since the inception of word cocktail in the early 1800’s. Consumers worldwide are enjoying teas hot or iced in familiar flavors like black, white, green and oolong as well as in newer varieties like matcha and sencha. “We are confident that the category will continue to grow because quality canned cocktails like ours offer an efficient, quick-service alternative to beer or hard seltzers,” says Kight, “made without mystery ingredients.”. In fact, the ready-to-drink space is boosting sales across all alcohol beverage categories, with the emerging malt-based cocktail segment leading the pack in growth. Driving the RTD growth is the rise in popularity of canned cocktails, which grew in both value and volume last year, according to Nielsen. RTD cocktails taps into consumer demand for convenience and provides drinkers “with something they’ve historically had to be at a bar or restaurant to enjoy”. “The RTD category has grown 28% in the past 28 weeks,” says Mike Morgan, president of Prestige Beverage Group, which distributes both the Joia Spirit and Kinky Cocktails lines of RTD mixed drinks. “We anticipate that as the RTD category continues to grow, new entrants will look to get in on the category’s success,” says Paquette. As an industry category, RTD cocktails have grown rapidly, with growth expected to continue over the coming years. The most common are alcopop, cocktail pre-mixes, and bottled cocktails. Gemma Collins launches sparkly gin liqueur. “With supply challenges with popular brands like High Noon, consumers are searching for alternatives RTDs. Each … Nielsen said the RTD growth was boosted by brands “experimenting with new and interesting flavours that haven’t historically been available away from the bar”. They combine Zing Zang’s cocktail mixes with vodka, silver tequila, and Kentucky bourbon. Driving the RTD growth is the rise in popularity of canned cocktails, which grew in both value and volume last year, according to Nielsen. Indeed, closer to home, one of Global Brands’ new product launches in 2018, premium canned cocktail All Shook Up, proved a top-seller in Tesco and was one of the best-performing the supermarket has seen in the category. Within hard seltzers, the top flavour is the ‘assorted’ option, showing that consumers are looking for more choice, Nielsen claimed. The ready-to-drink (RTD) spirit-based cocktail category grew 40.7% over the last year, while malt-based RTD cocktails grew 574%, according to new data. Now, we see a massive variety that encompasses everyone’s tastes.” The wide variety also allows consumers to experiment with new types of cocktails without purchasing the ingredients needed to make them at home, she says. It’s obvious that RTD cocktails are here to stay— but it doesn’t have to mean bad … }); Terms & conditions | Privacy Policy | Cookie Policy | Please drink responsibly | Log in RTD cocktails are also seen as safer alternatives amidst pandemic health concerns. The convenience and portability of RTDs, which have become more varied in recent years, offer consumers safe access to high-quality cocktails amidst bar and restaurant restrictions. '); And it’s booming as a result. The number of RTD brands available on Drizly nearly doubled over the past year, growing from 85 brands in 2019 to 168 brands in 2020. When restaurants and bars shuttered in March, consumers brought on-premise cocktail culture home. According to Nielsen, year-over-year off-premise dollar sales growth was 57 percent for the 52-week period ending August 8. Malt-based cocktail sales, for example, are up 574% from a year ago. Ready-to-drink (RTD) cocktails have experienced new growth in recent years, but the impact of Covid-19 set the category on a skyrocketing trajectory. RTD alcoholic beverages is a drinks category that saw a boost and continual growth throughout the weeks of lockdown. It seems that the challenge for retailers is not to decide which RTD cocktails to offer, but to actually keep inventory in stock, if summer sales are any indication. For some time now, the analytic mantra ‘drinking less, but drinking better’ has been the chant du jour for both industry experts and companies. Red blends once soared towards the top of wine sales, but now growth is flat. Whisky made in 2020 'most valuable in history', Bacardi buys bottled cocktail brand Tails, Diageo forecast to outperform Pernod post-pandemic, Glengoyne debuts its oldest Scotch whisky, Isle of Raasay unveils inaugural single malt, Otterbeck Distillery launches Captain Sir Tom’s Gin. Zing Zang has announced the launch of a new line of spirits-based, ready-to-drink (RTD) canned cocktails. Like other canned beverages, the single-serve format reduces potential contact points (such as shared glassware or bottles) and offers glass-free portability for outdoor gatherings. jQuery(document).ready(function($) { According to Nielsen, for the 23-week, Covid-affected period ending August 8, year-over-year growth in off-premise dollar sales for RTD cocktails was 86.8 percent. “Canned cocktails are a convenient and quality solution for cocktail lovers,” says Earl Kight, the co-founder and chief sales and marketing officer for Cutwater Spirits. “RTDs have evolved from basic, low-ABV drinks to true, high-proof cocktails,” says Mollie Cook, the director of marketing for Molly’s Spirits in Denver. May 30, 2019 | News |. As indicated by the success of High Noon, consumers are most often reaching for simple, refreshing, low-ABV cocktails like vodka-sodas or gin-tonics. We're committed to your privacy. According to Nielsen data, the RTD spirit-based cocktail category grew 40.7% over the last year. The result has been significant growth. For more information, check out our privacy policy. Nationwide, it accounted for more than $539 million in off-premise sales over the 52 weeks ending August 8, according to Nielsen, and it has already begun to steal share from major categories like vodka on Drizly. Malt-based cocktail sales, for example, are up 574% from a year ago. Austin Cocktails consumers are evenly split between men and women, aged 26 to 58. The brand’s success has been driven by its positioning within the hard seltzer category; though High Noon is vodka-based, therefore categorizing it as a RTD cocktail, it is marketed as a vodka-based hard seltzer. Despite representing less than one percent of sales share on Drizly, the RTD category is becoming more significant by the month. High Noon dominates Drizly’s list of top-selling RTD SKUs, holding seven of the top ten spots. Spirit and wine-based RTD cocktails sales … Zing Zang RTD cocktails are initially available in three varieties: Bloody Mary, Margarita, and Bourbon Whiskey Sour. The result has been significant growth. The packaging of RTDs has “broadened the scope for how alcoholic beverages have traditionally been contained” with the can format “performing particularly well”. On Drizly, the RTD segment has grown 416 percent in share of sales year-over-year. “As Covid-related on-premise restrictions persist through the second half of the year,” Paquette says, “we expect that will continue to drive growth in the RTD category.”, At Molly’s Spirits, Cook expects that the category will continue to boom throughout the holiday season, particularly because of new socialization habits. This can be demonstrated in a number of ways including new entrepreneurial companies introducing their brands to the market, existing companies acquiring other brand(s), and existing brands in single alcohol segments extending their name recognition into newer segments to try and become a ‘power’ brand. Don’t call it a fad: While the RTD cocktail category’s potential to drive retail sales — both now and in the future — is huge. This is up significantly from .12 percent share of sales in 2019, but the category is still niche but growing. High Noon Hard Seltzer Variety Pack (vodka-based) High Noon Watermelon Hard Seltzer (vodka-based) High Noon Pineapple Hard Seltzer (vodka-based) High Noon Grapefruit Hard Seltzer (vodka-based) High Noon Black Cherry Hard Seltzer (vodka-based) High Noon … Value–added water also saw double–digit growth rates in both volume and dollars. “Similar to hard seltzer, RTDs offer an alternative to traditional canned offerings that appeal to the female demographic with differentiated flavors, lower calories, and lower sugar.”. RTD cocktails grew considerably this year; retailers and experts evaluate what’s next for the category. From a party favourite to a premium product Premiumisation is the first factor that’s driving RTD growth. }); Canned formats dominate Drizly’s top-selling RTD SKUs and brands, underscoring how the category has largely shifted from bottles to cans to meet consumer preferences. Drizly uses the information you provide to us to contact you about our relevant content, products, and services. These newer alcohol segments are “providing expansion opportunities” across the alcohol category, Nielsen claimed. These new products from established liquor brands, along with increased distribution of current RTD offerings, will likely determine the future growth and success of the category. Ready-to-drink (RTD) cocktail category growth up 40%. Retail dollars for RTD tea grew 3.9 percent. “The RTD category has grown 28% in the past 28 weeks,” says Mike Morgan, president of Prestige Beverage Group, which distributes both the Joia Spirit and Kinky Cocktails lines of RTD mixed drinks. California’s Troop Beverage Co. has officially launched its new line-up of bold, balanced cocktails available in CA and CO retail stores, and direct-to-consumer nationally. Get sales-driving data and insights in your inbox every week. “This strategy has allowed High Noon to capture share of hard seltzer buyers and carry over into the RTD category,” says Liz Paquette, Drizly’s head of consumer insights. “In the past, all that was readily available was usually-too-sugary margarita mix. BevAlc Insights’ 2H 2020 Red Blends Forecast, BevAlc Insights’ 2H 2020 Scotch Forecast, BevAlc Insights’ 2021 Chardonnay Forecast, High Noon Hard Seltzer Variety Pack (vodka-based), High Noon Watermelon Hard Seltzer (vodka-based), High Noon Pineapple Hard Seltzer (vodka-based), High Noon Grapefruit Hard Seltzer (vodka-based), High Noon Black Cherry Hard Seltzer (vodka-based), High Noon Peach Hard Seltzer (vodka-based), High Noon Lime Hard Seltzer (vodka-based), Fishers Island Lemonade (vodka and whiskey-based), Montebello Long Island Iced Tea (vodka, rum, tequila, gin-based). In our imaginations, cocktails do not come preassembled and making them portable requires some ingenuity (sippy cup cosmo, anybody?). For more information, check out our privacy policy. RTD Mixed Spirit Production in the US industry outlook (2020-2025) poll Average industry growth 2020-2025: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. The category was already poised for success in 2020 after experiencing marked growth in 2019. Popular RTD occasions include outdoor picnics (32%), the beach/pool (28%) and while travelling or on holiday (23%). If you continue to use this site, you consent to our use of cookies. RTD Mixed Spirit Production in the US industry outlook (2020-2025) poll Average industry growth 2020-2025: x.x lock Purchase this report or a membership to unlock the average company profit margin for this industry. The ready-to-drink category meets consumer demand for convenience. The growth of the global RTD alcoholic beverages market is driven by the rising association of RTD beverages with … “We really think this is going to explode. “With recent and continued product innovation in the RTD space,” adds Paquette, “there is certainly potential for it to become an even stronger category in coming years.”. The U.S. trails some other countries when it comes to the size of the RTD cocktails market, which possibly hints at how much potential for growth there is. While Scotch category growth lags behind the overall whiskey boom, premiumization and product innovation makes it an important investment for retailers, Chardonnay sales have slowed but the varietal wine is still a market mover — here’s what to expect going forward. Consumers are not only taking a bigger interest in the numerous benefits of canned packaging, but also with the simplification of the canned cocktail experience itself. Driving the category, refrigerated ready-to-drink (RTD) teas generated dollar sales of more than $1.61 billion in U.S. multi-outlets and convenience stores for … While RTDs can range from full-strength cocktails, like Austin Cocktails’ cans, to lower-ABV options that can compete with hard seltzers, premiumization has resulted in a new wave of products that boast less sugar and more ingredient transparency. The ready-to-drink cocktail category is experiencing growth as it meets consumer demand for convenience. However, the onset of Covid-19 set the RTD cocktail category on fire. Nielsen data indicates a similar trend in measured off-premise channels: Sales were up 20.7 percent year-over-year in 2019, up significantly over the prior year’s 7.1 percent year-over-year growth. There may even be the potential for RTDs to capitalize on — and compete with — the success of another booming category: Hard seltzer. , Synopsis, RTD Alcoholic Beverages are ready-to-drink beverages with a certain amount of alcohol content in them. “No ingredients, no prep or clean up. “They are great for people who are willing to socialize [but want to] minimize contact by doing so outdoors,” says Jill Burns, a co-founder of Austin Cocktails. Zing Zang has announced the launch of a new line of spirits-based, ready-to-drink (RTD) canned cocktails. While this resulted in a purchasing uptick in the ingredients to recreate their favorite restaurant cocktails, it was also a boon for canned, single-serve RTDs. “We really think this is going to explode. Malt-based cocktails led the growth of the category, with annual sales now accounting for US$4.7 million. RTD coffee outperformed all other segments with a 12.3 percent increase in volume and a 14.4 percent increase in retail dollars. thespiritsbusiness.com © 2020 | Published by Union Press Ltd. | Registered No. How is the RTD Market Evolving? A ready to drink alcoholic beverage is a pre-mixed/ prepared and packed form of cocktail for … US off-trade spirits sales grew by 26.3% in September and October, bolstered by a triple-digit increase for ready-to-drink (RTD) cocktails, according to new Nielsen data. Pre-mixed/RTD alcoholic drinks market has diverse growth factors, however is still curtailed by various challenges as well. Here’s what retailers need to know to optimize their red blend inventory. Harmful effects with consumption of pre-mixed/RTD alcoholic drinks, vivid taxation and duties as well as cultural beliefs across various countries are hampering the growth of pre … Premiumisation​ is the first factor that’s driving RTD growth. //alert('pressed! Still, despite the rapid growth, the category’s share of sales on Drizly remains relatively small, prompting the question: How significant will RTD cocktails be in the months and years to come? Consumers are not only taking a bigger interest in the numerous benefits of canned packaging, but also with the simplification of the canned cocktail experience itself. The growing preference for RTD cocktails by millennial in developed countries and the easy availability of these products in the market is driving the growth of the RTD alcoholic beverages market. You may unsubscribe from these communications at any time. Premium is not often a characteristic associated with the category, which is more typically known for its affordability. Despite rapid growth, however, RTD cocktails in 2020 still represent a small share of sales on Drizly: .62 percent share of sales overall, and 1.79 percent share of liquor category sales. 2020 has been the year of the RTDs. Zing Zang RTD cocktails are initially available in three varieties: Bloody Mary, Margarita, and Bourbon Whiskey Sour. We use cookies on this site to store information on your device. Indeed, Mintel predicted a 9% rise in RTD cocktail sales by volume over a five-year period … However, a third category joined the list of standout growth categories in the month of June: RTD beverages, which were up over last year. Stocking other brands can differentiate retailers amongst their competition and attract new buyers.”, Overall, purchasers of RTD cocktails on Drizly skew female, comprising of 57.6 percent of buyers compared to 42.4 percent male.