Spirits-Based RTD Category Mints New Million-Case Brands
May 29, 2024The spirits-based ready-to-drink category continues to connect with consumers in the U.S. across both the on- and off-premise markets. The rapid rise of RTDs over the past few years is a clear example of spirits marketers meeting consumers where they are and innovating with a steady stream of new releases to keep up the momentum.
According to Impact Databank, the spirits-based RTD market in the U.S. showed another strong increase last year, with volume reaching 57 million cases, up from about 42 million cases a year earlier. As recently as 2019, spirits-based RTDs collectively depleted under 10 million cases in the U.S.
There are now a dozen spirits-based RTD brands above 1 million cases in the U.S. market, roughly double the number from a year ago. The elephant in the room is High Noon Sun Sips, the Gallo-owned juggernaut that soared 34% to almost 22 million cases last year to account for nearly 40% of the category. High Noon still has white space in the chain-dominated western U.S. “In the independent markets, yes, it feels very saturated in terms of distribution, but we’re still gaining in the major western markets where the chain business is so predominant,” says Britt West, executive vice president and general manager, Spirit of Gallo.
But while High Noon continues to surge, it’s far from the only brand driving gains. Big players like Cutwater (AB InBev), Monaco (Atomic Brands), The Finnish Long Drink, White Claw (Mark Anthony Brands), and Jack Daniel’s (Brown-Forman) all surged in the spirits-based segment last year.
Earlier this month, The Finnish Long Drink, a gin-based brand that’s positioned to cross 2 million cases this year, saw Marcy Venture Partners, co-founded by Jay-Z, become a significant investor in the business, alongside existing celebrity backers like actor Miles Teller, DJ Kygo, and professional golfer Rickie Fowler. The investment is intended to unlock the next phase of growth for the brand.
Another label that has catapulted onto the leaderboard recently is Surfside Iced Tea & Vodka from Pennsylvania-based Stateside Vodka. Leveraging its home state as well as the Jersey Shore market, Surfside grew more than six times over last year to above 1.2 million cases. Clement Pappas, founder and CEO, tells SND that newer markets like Virginia and New England also hold promise. “We’re in the northern New England states like New Hampshire, Vermont, and Maine,” he says. “They allow convenience sales so we can be in the cooler. We think that can drive a lot of trial.”
| Million-Case Spirits RTD Brands In The U.S. (thousands of 9-liter cases) |
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| Brand | Company | 2022 | 2023 | Percent Change1 |
|
|---|---|---|---|---|---|
| High Noon Sun Sips | Spirit of Gallo | 16,400 | 21,900 | 33.5% | |
| Cutwater | Cutwater Spirits (ABI) | 2,650 | 3,035 | 14.5% | |
| Monaco | Atomic Brands | 2,551 | 2,967 | 16.3% | |
| Jose Cuervo Margaritas | Proximo Spirits | 2,750 | 2,570 | -6.5% | |
| Nutrl | Anheuser-Busch InBev | 900 | 2,025 | + | |
| The Finnish Long Drink | The Long Drink Co. | 1,000 | 1,800 | 80.0% | |
| Carbliss | SNFood & Beverage | 400 | 1,519 | + | |
| Surfside Iced Tea & Vodka | Stateside Vodka | 188 | 1,236 | + | |
| White Claw | Mark Anthony Brands | – | 1,200 | + | |
| Jack Daniel’s | Brown-Forman | 419 | 1,036 | + | |
| 1800 Ultimate Margarita | Proximo Spirits | 1,190 | 1,035 | -13.0% | |
| Crown Royal RTDs | Diageo | 1,000 | 1,000 | – | |
| Total2 | 29,448 | 41,323 | 40.3% | ||
| 1 Based on unrounded data. 2 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2024 |
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