2023 Category Trends everywhere , but that caused all of us to question some things that we took for granted ,” says Nicole Austin , General Manager and Distiller , George Dickel . “ Like , that you have to go to a cocktail bar and pay $ 25 to enjoy a good cocktail . Covid created a rethink opportunity . RTDs are for sure poised to take advantage of that .”
Moore of Southern Glazer ’ s urges retailers to be nimble and mindful of younger consumers here .
“ Capturing current and hot trends ( like espresso martini ) will be important in the RTD category ,” he says . “ Retailers need to be able to move products in and out as consumers ’ flavors and drink preferences changes , or as the season changes . We are finding that 24 % of Gen Z would like to see more fun displays such as interactive displays in-store to provide a fun shopping experience . Alternative package sizes and types such as biodegradable bottles could also make some significant inroads , just as consumers look to reduce their carbon footprint .”
SPIRITS DOMINATE
The numbers tell the tale for this trend . In 2022 , U . S . distilled spirits reached a record market share in our country , according to the Distilled Spirits Council of the United States ( DISCUS ). Sales were up 5.1 % last year to an all-time-high total of $ 37.6 billion , while volumes rose 4.8 % to 305 million 9-liter cases .
Driving this incredible growth is whiskey and tequila . The former was up 10.5 % in sales in 2022 to $ 5.1 billion , while the latter increased 17.2 % to $ 3.1 billion . Truly , it ’ s tequila ’ s time , thanks to surging consumer curiosity . “ Consumers have really taken an interest in the education that goes into the craft and dedication that goes into producing the spirit , and in turn , have really gained a better appreciation for tequila ,” says Lalo González , Co-founder of the rapidly growing tequila brand Lalo .
Another large part of the growth in premium spirits comes as the base of high-end RTDs . Premixed cocktails were up 35.8 % to $ 2.2 billion in 2022 , according to DISCUS . Gone are the days of sugary , bottom-shelf stuff . Now , consumers expect , and look , for more — the way they would in a cocktail bar .
“ When someone walks into [ world-class Brooklyn bar ] Clover Club , all the cues of the bar really help explain to them the experience they ’ re about to have ,” explains Austin of George Dickel , who recently released an RTD collab with Social Hour . “ They walk in past these beautiful glass windows , they see this beautifully tiled floor , and this oak bar . . . before they ’ ve even encountered the drink there ’ s all these cues that help people understand the experience they ’ re about to have . But standing in a liquor store , looking at a very crowded shelf of a million different cans , it ’ s so overwhelming . It ’ s hard to tell the difference between the crappy flavored one and
73 % of RTD drinkers consume at home , and of those , 24 % prefer RTDs over making cocktails from scratch .
Scott Moore , Southern Glazer ' s SVP National Accounts Off Premise
a really nice drink .”
“ We ’ ve thought a lot about how to explain to people , when you don ’ t have those other cues , that this is a really nice cocktail ,” she continues . “ I think the choice of having an age statement [ on the George Dickel / Social Hour RTD ], and using a quality whisky , and having the brand , the artful label , all those things hopefully help explain that to people , in that context , when they ’ re standing under the fluorescent lights .”
NOSTALGIA PRODUCTS
One minor trend worth monitoring in 2023 is the rise of nostalgia-based products . These are alcoholic versions of popular beverages from our childhoods . For instance , Twisted Tea Rocket Pop and SunnyD Vodka Seltzer , which both launched around spring of 2023 ; Hard Mountain Dew , which came out in early 2022 ; and Mike ’ s Hard Freeze , which reached market in March of last year .
“ New Mike ’ s Hard Freeze delivers all the flavor without the brain freeze ,” says John Shea , chief marketing officer , Mike ’ s Hard Lemonade Co . “ Mike ’ s Hard Freeze was inspired by ' 90s nostalgia with throwback flavors , colors and packaging . As a first for Mike ’ s Hard Lemonade , we crafted four refreshing , delicious and sessionable flavors to create a taste experience that brings back that ' 90s nostalgia .”
Note , of course , the repeated references to the ' 90s . In other words , the childhoods of Millennials , currently the largest generational block of U . S . consumers . Expect more SKUs that appeal to the simpler , adolescent times of customers now in the 30s and 40s .
And keep your eye out for the next inevitable iteration of these products . Which is : nostalgia for the 2000s , as more of Gen Z reaches legal drinking age . Hard Capri Sun , anyone ? BD
www . beveragedynamics . com July 2023 • Beverage Dynamics 19