RTD Value vs. Volume
The ready to drink segment posted its seventh consecutive year of volume gains (+0.6%). Premiumization is evident as total value increases +6.0%.
Continued Evolution
RTDs are in a constant state of evolution due to ever-changing consumer demand and interest. After years of light-flavored and lower-ABV offerings there has been increased demand for full flavor and more alcohol.
Category Saturation
Hard seltzers reached saturation point with the number of active brands falling into decline (White Claw, Truly, Mike’s Hard). Customers are trading up to spirit-based canned cocktails (vodka #1, tequila #2).
Younger Consumers
RTD consumers are younger, drink out twice as often as the average person, are likely to spend more on an RTD and consume a wider variety of beverage alcohol categories. Operators should keep this growing customer base in mind when developing menus that have broad reach.
RTDs in the On Premise
17% of consumers drink ready-to-drink alcohol in the On Premise and 16% drink hard seltzers. The majority of hard seltzer drinkers typically drink hard seltzer packaged in a can, with 1 in 4 drinking it on tap/draft. Price is a key consideration across the RTD and hard seltzer categories when deciding what to drink on premise.
RTD Spirits-Based Brands on Fire: (source: Nielsen Off Premise 52 w/e 5/13/23)
- High Noon Seltzers (+76% vs. YA); #1 spirits-based RTD
- On the Rocks (+58% vs. YA); #4 spirits-based RTD
- The Finnish Long Drink (+140% vs. YA); #11 spirits-based RTD
- Malibu Cocktail (+225% vs. YA); #20 spirit-based RTD
