Spirits-Based RTDs, Part 1: The Major Players Driving Growth

Spirits-based RTDs and ready-to-serve cocktails have been a driving force in the market the past few years, with the category projected to approach 60 million cases this year, up from less than 30 million cases in 2021, according to Impact Databank. The soaring popularity of RTDs—including brands from both established players and new contenders—is a big reason that total spirits growth in the U.S. is projected to come in up 5% for calendar 2023, with depletions surpassing 300 million cases for the first time.

While RTD growth has been broad-based, Gallo’s High Noon continues to lead the pack by a wide margin, with volume projected to crest 21 million cases on 31% growth this year, according to Impact Databank, accounting for approximately one-third of the total category. “High Noon continues to have tremendous momentum year over year,” Britt West, Spirit of Gallo senior vice president and general manager, told SND. “We’re strengthening our position as the number-one spirits brand by volume, and with the addition of High Noon Tequila Seltzer this year, as well as our seasonal limited edition packs and 700-ml. options, our momentum is strong and we feel confident about it continuing into 2024.”

AB InBev has also become a formidable player in spirits-based RTDs with two brands among the leaders, Cutwater and Nütrl. Cutwater passed 2.6 million cases last year and is up close to 20% in control states through October of this year. The brand continues to have opportunity, as it’s still not available in all markets, with its cocktails selling in four-packs and individual 12-ounce cans. Even more impressively, Nütrl is up exponentially in control states this year, after nearing a million cases in 2022. “Nütrl cocktails ($17 an eight-pack of 12-ounce cans) are showing exceptional growth,” at 103-store Texas chain Twin Liquors, according to Eric Dohanich, vice president of operations and business development.

Also more than doubling in size in control states this year is The Long Drink, the Finnish brand that retails around $14 a six-pack of 12-ounce cans, depending on the market. “We expect similar growth to what we put up last year,” Long Drink president Rudy Costello told SND. “Our velocity remains strong.” To further expand its audience, The Long Drink is using marketing plays like its “Drinks On…” program, featuring one of the brand’s celebrity investors, which include the actor Miles Teller, golfer Rickie Fowler, and DJ Kygo.

Other leading brands also continue to climb rapidly. Monaco, from Atomic brands, is up by nearly one-third in control states this year after totaling 2.6 million cases in the U.S. last year. This summer it debuted a new look for its cocktails retailing at $3 a 12-ounce can. From the ready-to-serve segment, Beam Suntory’s On The Rocks is up almost 40% in control states through October. Earlier this year the brand introduced a limited Midori Sour offering selling in 200-ml. and 375-ml. versions. Beam Suntory’s RTD fold also includes Delola, the brand from Jennifer Lopez, Ken Austin, and Jenna Fagnan, which debuted this spring with orders for 100,000 cases on the books at launch. Southern Champion’s Buzzballz label, meanwhile, is likewise up double-digits in control states, building on its 2022 U.S. total of 830,000 cases.

Apart from the established brand leaders, there’s a number of fast-growing labels that have launched only this year and are already carving out significant space in the segment. Those include the new spirits-based RTDs from White Claw and Truly, Sunny D RTDs, Jack Daniel’s & Coca-Cola, and High Noon’s Tequila-based offerings.—Shane English

We’ll have more on the brands driving the fast-rising RTD category in the second part of this feature.

Tagged : AB InBev, Cutwater, Gallo, High Noon, Monaco, nutrl, The Long Drink

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