Retailers See Massive Influx Of RTD Products As Category Booms

With the explosion of spirits-based RTDs into a 40-million-case category in the U.S., according to Impact Databank, retailers are eager to capitalize on the upswing, garnering sales increases from both established brands and newcomers alike. But they’re also managing a deluge of new products as ambitious marketers target the category in droves.

Will Moore, chain general manager for the Indianapolis-based Crown Liquors stores, calls the latest influx of brands an “SKU-pocalypse” and likens the frenzy to the similar surge that happened with craft beer several years ago, although RTDs started from a smaller base.

One of the most watched launches of this year is Delola RTD cocktails, exclusively reported by SND in April. The brand creator is superstar entertainer Jennifer Lopez, and Delola Spritz is her first release from The House of Delola LLC. “Any brand with star celebrity on the package seems to be big,” says Lee Ann Reisenberger, general manager at Lisa’s Liquor Barn in Penfield, New York. “I can guarantee people will be asking for it.”

New RTD brands containing recognizable mixers—Coca Cola, Fresca, and others—are also making waves in her store. “Fresca Mixed is doing really well and Jack Daniel’s and Coca-Cola is too; with Coke on the label it really helps,” Reisenberger says. There is also a lot of buzz surrounding SunnyD Vodka Seltzer, a boozy version of what was a childhood favorite sugary juice drink for many U.S. consumers.

Such recognizable brands can help differentiate a newer RTD from the fray of hundreds of brands vying for attention from retailers and, in some cases, restaurateurs and bar owners as well. Ready-to-drink cocktails are on fire throughout the U.S., with consumer enthusiasm eclipsed only by the enthusiasm shown by producers to get new products into the marketplace.

In fact, of 35 leading brands tracked by Impact Databank, only ten had measurable volume as recently as 2017. The majority found their footing in 2020 and 2021, and 2022 brought significant growth for most brands. Together, the leading 35 brands combined for a 59.4% increase to 37.5 million 9-liter cases in 2022.

Within the broader RTD sector, it’s the spirits-based entrants, rather than malt-based drinks, that are resonating best with U.S. consumers. “The market is poised to continue growing,” says Don Deubler, CEO of Atomic Brands, which owns the Monaco brand. “The main difference is that now consumers are more discerning and knowledgeable about the sub-categories within the RTDs. While seltzers have slowed down, full flavor spirit-based RTDs are gaining share in front of flavored malt beverages and seltzers.” Market Watch has more on the burgeoning RTD sector.

Tagged : Delola, Fresca, Market Watch, Monaco, SunnyD

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