R(TD)evolution: how Ready To Drink is becoming a fast-growing worldwide trend

In a world in which consumers value quality, are happy to pay for premium drinking experiences and are prolific in their ever improving knowledge on the food and beverage industry, new and more established brands, through innovative flavors, sophisticated combinations and catching packagings, are working at giving premium drinkers the opportunity of enjoying high standard cocktails away from their favorite bar.

TOP CATEGORIES

According to Nielsen Scantrack April 2019, in the past 52 weeks the measured off-premises have experienced the following sales growth:

– malt-based cocktails: + 574% (with annual sales now reaching $4.7 million)

– hard seltzers: + 193%. Within the cathegory, the “assorted flavor” is the top option (+ 66.2%), confirming consumers’ desire and need to try new combinations

– canned wine: + 77.5%

– RTD wine based cocktails: + 41.9%

– RTD spirits based cocktails + 40.7%

– Tetrapak wine: + 14.6%

TOP PACKAGING

The increase in popularity of the RTD category, especially the emerging cocktail segment, is reshaping the traditional perception of alcohol container, with the can format performing very well.

Sprezza – Vero Spritz Italiano

Among the new ready to serve, premium cocktails, as an example, it is worth featuring:

– Fever Tree G&T, available in Premium Indian, Refreshingly Light and Elderflower flavors
– Smirnoff Sparkling Seltzer, in a few flavors options like cranberry lime, orange mango and watermelon
– Smirnoff Ice Smash strawberry lemon
– Cutwater G&T
– Shake Baby Shake non-carbonated, available in Raspberry Mojito and Passion Fruit Martini flavors
– Beviamo Italian Spritz
– Ohza Mimosa
– Kahlùa Espresso Style Martini
– Fling Craft Cocktails, available in Margarita, Mai Tai, Cucumber & Lime G&T, Blood Orange Vodka Soda
– Wandering Whistler Hard Tea
– Mezzo Spritz Blood Orange
– Sprezza Vero Spritz Italiano, available in Bianco, Rosso
– Vista Bay Ruby Grapefruit Hard Seltzer

TOP SALES DRIVERS

Regarding the reasons consumers choose to purchase single serve RTD cocktails, Nielsen Homescan Omnibus Survey January 2019 shows the following data:

– a convenient way to have a cocktail: 55.52.%
– availability at the local grocery store: 35.76%
– light and refreshing: 34.26%
– easy to sip over the course of an evening: 32.21%
– can easily be consumed anywhere: 31.61%
– the right amount of ABV: 25.54%
– price: 21.09%
– doesn’t fill up too much: 11.72%
– to better align with H&W goals: 8.86%

Fever Tree – New G&T range

TOP OCCASIONS

Regarding drinking occasions, the cathegory caters for consumers relaxing or having fun away from their favorite bar. In particular, the top three moments for each generation segment are:

Relaxing at home:

– Millennials: 47.48%
– Generation X: 50.72
– Baby Boomers: 48.81%
– Greatest Generation: 60.49%

To drink by myself:

– Millennials: 32.4%
– Generation X: 42.23%
– Baby Boomers: 42.85%
– Greatest Generation: 47.77%

During the holidays:

– Millennials: 32.23%
– Generation X: 32.85%
– Baby Boomers: 29.24%
– Greatest Generation: 27.75%

Popular outdoor drinking occasions, across all generations, include outdoor picnics (32%), beach/pool (28%), and travel (23%).

Capitalizing on the premium drinkers’ growth, evolution and revolution, canned and bottled cocktails represent a craft yet convenient alternative to the more traditional occasions of consumption, with stadium, airlines, hotels or small restaurants starting to serve them as a time and money saver, without renouncing to quality.
The trend also caters for cocktails aficionados willing to replicate at home the same flavor experience they are used to have at the bar, without having to replicate complicated recipes themselves.

We are looking forward to see the evolution of a cathegory that could become, in the next few years, a worldwide phenomenon.