Randall ’ s Wine & Spirits in St . Louis , MO , struggles to find shelf space for all the RTD contenders .
“ RTD sales have definitely increased in our store in 2023 .”
– Jack Backman , owner and manager of Cheers Liquor Mart in Colorado Springs , CO
York , Denver , Los Angeles and Washington , D . C ., in late 2022 unveiled a line of RTD cocktails created in collaboration with craft spirits portfolio The Craft Spirits Cooperative .
Rosewood Miramar Beach in Montecito , CA , recently launched a collection canned cocktails crafted by director of bars Sam Penton . Priced at $ 24 each ( two servings per can ), the RTD line includes When Honey met Passion , with Aviation gin ; Bonfire at Banana Bay , with Del Maguey mezcal ; What-a-Melon , featuring Santa Teresa rum ; and Mind You Coconut , Wilson , featuring Avion tequila .
New York gastropub Due West began offering canned cocktails at the start of the pandemic in 2020 . The craft RTDs , available at Due West or for takeaway in a pack of six for $ 45 , have become a permanent staple due to popular demand , with some flavors rotated out seasonally . And Stephen Talkhouse , the Hamptons , NY-based venue frequented by performers and celebrities , in February introduced Talkhouse Encore , a line of fruit-forward , spirits-based RTDs .
Cuervo ready-to-drink Margaritas and Cutwater RTD cocktails are top sellers for several retailers .
A BUBBLY FUTURE
RTDs show no signs of slowing down . Despite the impact of the cost-of-living crisis on consumer incomes , CGA by NIQ ’ s 2023 report found that seven out of the 10 markets covered in the report registered double-digit volume growth for premium-plus RTDs . This suggests that there is still plenty of headway for growth for higher-priced products .
“ RTD sales have definitely increased in our store in 2023 ,” says Backman . “ We have been fighting the chain stores for wine sales since the law [ allowing grocery and convenience stores to sell wine in Colorado ] in March , so giving the RTDs more space and attention has helped both them and us .”
Finding shelf space for all the RTD contenders is a challenge , however . “ There ’ s limitations on shelf space , even for us ,” Randall says .
“ Plus , I can only imagine this issue at chain stores like Total Wine and BevMo !. No one built their stores with never-ending shelf space , so it ’ s tough to compete .”
Backman of Cheers Liquor Mart agrees . “ I did at least four resets of our RTD section in 2023 ,” he says . “ Every time I got it the way I wanted , two or three more brands came out with three or four flavors each .”
The major brands are pushing the little guys out of the market , especially in the canned segment , Backman notes . The competition makes it difficult to go head-to-head with the well-known brands .
Another issue is a lack of marketing that has hurt some new RTDs , Randall says . With so many brands making their way into the category , unless beverage producers promote their drinks properly , they just become another product on the shelf in a sea of other RTDs .
Still , Randall thinks the RTD market has plenty of opportunity for growth . Between the different flavors , the addition of spirits and the fact that consumers don ’ t have to mix the drinks themselves , canned cocktails seem to be exactly what people are looking for .
As with any hot and overserved category , there will likely be a shakeout . “ A lot of RTD customers are still experimenting with brands and drink types ,” Backman says . “ I think once the ‘ newness ’ wears off , people will look more towards which brand tastes best and which one has the bigger bang for their buck .” •
18 Cheers • Spring 2024 www . cheersonline . com