RTD Shifts to Premium and Mixami has the Answer
Ready-to-drink (RTD) cocktails have become one of the beverage industry’s biggest success stories in recent years. A foundation for growth was laid pre-pandemic as mainstream players, craft brands, and even bartenders created premium RTD cocktails and put them in single-serve cans, and the category started to take off thanks to a combination of convenience, higher quality, and wider flavour variety. Then, the pandemic pressure cooker catapulted the segment into overdrive.
According to Mintel data, total volume sales of spirits-based RTD cocktails increased 226% from 2016 to 2021, making the category one of the fastest-growing segments across beverage alcohol. In 2021, nearly 50 percent of adults over 22 years old reported drinking RTD cocktails, up from 40 percent in 2018.
“When we talk about alcohol, we talk about how consumers are looking to experience new flavours. They’re also looking for convenience, a premium experience, and a wellness element,” says Kayleigh Theriault, the beverage alcohol thought leadership manager for Nielsen IQ. “Ready-to-drink options really hit on all of these consumer drivers at once.” Interestingly enough, as single-serve options have become more mainstream within the RTD cocktail category, producers are now innovating outside of this format. RTD cocktails are now being released in pouches, bottles, ice pops, plastic balls, and beyond. If there’s a consensus to be had across producers, it’s to focus on premium ingredients and flavours.
RTD cocktail sales have largely been geared towards retail, with consumers bringing ready-to-drink cocktail options home as an alternative to keeping their bar carts stocked. Interestingly, this is a reversal of traditional beverage alcohol sales trends. On-premise operators had already begun incorporating RTD cocktails into hospitality venues where staffing and stocking a full bar might not make sense, such as stadiums, theatres, hotels, and airlines. Some bars launched their own ready-to-drink options as revenue drivers and brand builders amidst pandemic closures and have continued to find value in extending their restaurants’ offerings through RTD cocktails. But amidst today’s staffing shortages and budgetary constraints, even more restaurants and bars are embracing the advantages RTD cocktails can offer. “It’s a quick pour-and-serve from beverage carts or poolside bars, beach bars, and patios,” says Bronya Shillo, the founder and CEO of Fishers Island Lemonade, who is a former bartender. “We’re not trying to take away drink orders, but to help speed up the process so the bartender can go and take the time to make their handmade cocktails without being in the weeds.”
With increasing competition in the RTD cocktail space some have questioned whether ready-to-drink cocktails can really sustain the level of growth they’ve commanded in the past. But industry experts seem to believe that RTD cocktails are poised to continue expanding. (www.daily.sevenfifty.com, May 2022)
Mercato Brands is the exclusive importer for Mixami Premium Italian RTDs. Formats include 100ml single serve canisters as well as 1.5L, 3L and 5L bag-in-box. Learn more about the Mixami range CLICK HERE
