Retailers Weigh In On Spirits-Based RTD Trend

With Gallo’s High Noon Sun Sips hard seltzer leading the way with volume of above 21 million cases, spirits-based RTDs saw U.S. depletions jump 36% to 57.5 million 9-liter cases last year, according to Impact Databank, accounting for $4.6 billion in retail value, a 35% increase against the prior year. Retailers say that while the proliferation of brands is now creating a squeeze in the segment, they expect further gains for RTD cocktails this year.

The top five spirits-based RTD brands in the control state of Pennsylvania are Surfside, High Noon, White Claw Vodka + Soda ($11 a four-pack of 355-ml. cans), On the Rocks ($13 a 375-ml. bottle), and Jack Daniel’s and Coca-Cola ($13 a four-pack of 355-ml. cans). The Pennsylvania Liquor Control Board (PLCB) is also selling the recently launched Absolut Ocean Spray RTDs ($10.39 a four-pack of 355-ml. cans). “Almost all price tiers reported double- and triple-digit growth year over year,” says PLCB chairman Tim Holden. “Only the value category declined. This year we intend to focus on well-known spirit-based items with larger size options.”

In Pennsylvania, Stateside vodka’s Surfside RTDs ($10 a four-pack of 355-ml. cans) show strong trends during warmer months. “Philadelphia-based Surfside vodka iced tea and lemonade products exploded into our market in 2023,” says Holden. “Their standard vodka and iced tea four-pack became the top choice for retail customers in the second- and third-quarters of 2023, outpacing the High Noon variety pack in unit sales for several weeks. That encourages us to expand our selections.” According to Impact Databank, Surfside Iced Tea & Vodka soared to 1.2 million cases nationally last year, from less than 200,000 cases a year earlier.

Meanwhile, High Noon’s new Snowbird variety eight-pack ($20 in PLCB stores) has so far experienced strong sales. “As of February 7, we sold 14,175 units for almost $300,000,” Holden says. “This is a tremendous success for a historically slow season for spirits sales.”

Overall, High Noon continues to dominate the spirits-based RTD category in control states, according to the National Alcohol Beverage Control Association (NABCA). “High Noon has just over 50% share of canned cocktail sales in the control states with sales across all demographics,” says David Jackson, COO of trade relations for the NABCA.

At the three-unit convenience store chain Mendez Fuel in Miami, High Noon Snowbird ($24 an eight-pack at the chain) is also off to a fast start with momentum anticipated to continue. “High Noon, no matter what, will keep going,” says vice president of operations Andrew Mendez.

Other top selling spirits-based RTD brands at Mendez Fuel are Two Chicks ($16 a four-pack of 12-ounce cans), Miami Cocktails ($16), Cutwater ($11.79), Sabé ($18.49), and SunnyD Vodka Seltzer ($16). “Now I am not expanding so much to different brands,” Mendez says. “I’m focusing on High Noon and brands that keep moving. People are beginning to stick with products they know.”

Spirits-based RTDs appear to be on their way to another prosperous year. “We expect continued growth in spirits-based, low-calorie hard seltzers as some customers consider them an upgrade over malt-based beverages,” the PLCB’s Holden says. “We believe limited-time and seasonal variety packs will continue appealing to customers.”—Kevin Barry

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