8 Category Trends
between malt , wine , and spirits bases , ABV levels , sugar content and so on .
But rapid evolution also brings new opportunities . What was once a sugar-laden category also has become a shelf with a premium subsegment with very little sugar and high-quality ingredients , Burns and Gasnik add . Helping consumers ascertain where each product offering falls in those areas is key for existing and new brands . There are opportunities for growth for new and existing brands that can break through that noise .
Kelly Gasnik and Jill Burns , sisters and cofounders of the RTD brand Austin Cocktails .
cofounders of the RTD brand Austin Cocktails . They cite a recent Global Drinks Intel report that says just 16 % of RTD consumers are aged over 55 . When looking at the broader category , RTDs have also evolved from a female-leaning category to a more gender-neutral category . To date , women consumed 52 % of RTDs , and men 48 %.
Agreeing with the point about premiumization is John Neunson , cofounder of Brody ’ s Crafted Cocktails .
“ After being inundated with single-serve canned versions of seltzers and cocktails ( usually at much lower ABVs ) over the last several years , consumers are now looking to experience an authentic cocktail experience , driven by premium spirits , proper balance and true ABV profiles ,” Neunson says .
“ While vodka-based cocktails have been , and will likely continue to drive the category , both tequila and bourbon options are becoming more popular ,” he adds . “ With tequila and bourbon gaining in popularity , I expect to see a variety of new cocktail options based on these base spirits .”
This recent evolution in RTDs can lead to consumer confusion , especially as more and more brands enter this fast-growing category .
The most challenging dimension of the “ brand crowding ” issue right now is helping the consumer understand this relatively new and still dynamic shelf , Burns and Gasnik believe . Many consumers are still just trying to discern the difference
THE THREAT OF TARIFFS
After President Donald Trump threatened 25 % imports tariffs on U . S . trading partners Mexico and Canada , several organizations in the beverage alcohol industry have expressed concerns .
“ We appreciate President Trump ’ s goal to protect the American people and U . S . jobs . Our industry has been weighed down by retaliatory tariffs as part of unrelated trade disputes since 2018 , which crashed our exports harming thousands of distillers and their farmers across the United States ,” said Distilled Spirits Council president and CEO Chris Swonger , in a press release .
“ We are now currently facing the threat of a devastating 50 % tariff on American whiskey by the EU at the end of March 2025 . Imposing a tariff on tequila and Canadian whisky from two of our largest trading partners could kick off more retaliatory tariffs on American spirits to Canada and Mexico .”
“ Under the United States-Mexico-Canada Agreement ( USMCA ), tequila and Canadian whisky are designated as distinctive products , similar to bourbon , where they can only be made in their country of origin ,” Swonger added . “ Slapping a tariff on tequila and Canadian whisky will not boost American jobs simply because they cannot be produced in the United States .”
The continued threat of tariffs comes at a time when the spirits industry has seen declines .
Chris Swonger
“ The U . S . spirits sector continues to experience a slowdown ,” Swonger said “ At the end of the day , tariffs on spirits products from our neighbors to the north and south are going to hurt U . S . consumers and lead to job losses across www . cheersmagazine . com Spring 2025 • Cheers 27