Premium Mixers Go Mainstream, Matching Upscale Spirits Trend
September 22, 2023Of the massive mixer market in the U.S., a growing piece of the pie is premium mixers made to complement upscale spirits brands in cocktails. Premiumization has been a cornerstone of the spirits market for years, and mixers are riding the wave toward drinking higher-quality products.
Among the top brands in the premium mixer space is Fever-Tree, whose U.S. revenues have more than doubled since 2019, reaching $123 million on 23% growth last year. That growth continued in the first half of 2023, which saw the U.S. become Fever-Tree’s largest market by revenue, after jumping 32% at constant currency in the six months through June.
Fever-Tree claims leading positions in Ginger Beer and Tonic Water, as well as rapid growth for its Grapefruit and Club Soda. In addition, the company has launched its first Margarita and Bloody Mary mixers ($8 a 750-ml.). “We’re on the cusp of a dramatic shift in the way everybody embraces premium mixers,” says Charles Gibb, CEO of Fever-Tree North America.
Another leading label, Q Mixers, also touts its Ginger Beer and Grapefruit Soda offerings as benefiting from cocktail trends. “Mules were already popular and are now much more popular because of the variations like Kentucky Mule and Mexican Mule,” says Bob Arnold, CEO of Q Mixers. “Ginger Beer as a result of that is really growing. Tequila’s been on fire, and our grapefruit soda has been in growth mode because the Paloma is one of the fastest growing cocktails.”
Q currently garners about 35% of its volume in the on-premise, a figure Arnold expects to grow as the company ramps up its focus on bars and restaurants. He adds that this year Fever-Tree and Q are expected to exceed the combined dollar value of industry standards Schweppes and Canada Dry. “That means premium is now mainstream and mainstream is now value,” he says.
Owen’s Craft Mixers is also in the mix of well-known brands. The nationally distributed brand upped its profile earlier this year with a $10 million investment from NBA All-Star Jimmy Butler and entertainment company Live Nation. The deal includes a strategic partnership with more than 100 Live Nation amphitheaters, clubs, theaters, and festivals as the preferred mixer partner. Another celebrity active in the category is Blake Lively, who launched Betty Buzz in 2021.
“Consumers are much more discerning now,” sums up Brent Albertson, CEO of mixer and RTD player Zing Zang LLC. “They want excellence in a mix because it’s 70% of the drink. There has been a seismic shift rooted in the fact that consumers know ingredients and demand better quality.”
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