Spirits-Based RTDs, Part 2: New Competitors Flock To Burgeoning Category
December 5, 2023In the first part of this feature, we checked in on year-to-date growth from some of the top brands in the ascendant RTD market, which is projected to total almost 60 million cases this year, according to Impact Databank. In this issue we’ll take a look at some of the up-and-coming brands poised to make an impact looking ahead.
Celebrity drinks brands have become ubiquitous in recent years, and the RTD category is no exception. Actress Blake Lively, already part of the drinks industry with her Betty Buzz mixers, debuted a line of spirits-based canned RTDs this summer, including offerings like Sparkling Tequila with Lime Shiso retailing at $15 a 4-pack. “Betty Booze is rolling out in most key markets this year with plans to expand nationally by Spring 2024,” Andrew Chrisomalis, cofounder and chairman of Betty B holdings, told SND. “Our target consumer drinks sparkling beverages daily and likes super-premium and luxury sparkling drinks of all kinds.”
Michigan-based Vosa Spirits recently introduced model Kate Upton as a co-owner. The company’s range includes. Vodka Water (5% abv, $11 a four-pack) and High Line (7% abv, $13 a four-pack), the latter being carbonated and available in pineapple, peach, cherry, and lemon. The Thomas Ashbourne brand, meanwhile, counts Sarah Jessica Parker, Vanessa Hudgens, Rosario Dawson, Ashley Benson, Playboi Carti, and Neil Patrick Harris among its partners, selling at $20 a four-pack of 200-ml cans.
This summer, Casa Azul announced its latest celebrity partner, golfer Michelle Wie West. Wie West joins the brand alongside other famous investors like football player Travis Kelce and actress Eiza González. Casa Azul was launched by beverage entrepreneur Lance Collins—creator of Fuze, Core Hydration, and Bodyarmor—in August 2022 with a line of Tequila sodas, which jumped out to 62,000 cases in its debut. Another growing brand, Onda Tequila Seltzer, chaired by industry veteran Jim Clerkin, shot out to 260,000 cases last year, boosted by chief brand officer and actress Shay Mitchell.
Along with the numerous celebrity-backed brands, a host of other players are investing ambitiously. Coca-Cola is also making its presence felt, partnering with Brown-Forman, Constellation Brands, and Molson Coors on spirits-based RTDs. Speaking at the 47th Annual Impact Marketing Seminar this fall, Coca-Cola’s chief of new revenue streams Dan White said the company’s total sales in the RTD category are now nearly $1 billion globally. The Brown-Forman partnership is focused on Jack Daniel’s & Coke, retailing at $13 a four-pack and canned at 7% abv. Constellation Brands has aligned with Coca-Cola on Fresca Mixed, which it says is off to a fast start in the market. And Molson Coors has a spirits-based RTD partnership with Coca-Cola on Topo Chico Spirited.
Meanwhile, independent brands are likewise gaining traction. Among them, labels like Mom Water, Carbliss, Two Chicks, Stateside, ZingZang, and 44 North have all garnered significant volume. While still primarily an off-premise phenomenon, the category is also gaining traction in bars and restaurants, with on-premise operators pointing to consumer demand as well as ease of service as reasons for RTDs’ successes in the channel, and adding that younger consumers and health-conscious drinkers are especially likely to reach for RTD options. That angle, combined with RTDs’ ongoing surge at retail, augur well for further gains in the category heading into 2024.—Shane English
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