Competition Ramps Up In The Premium Mixer Segment

Steady increases in the premium mixer segment in recent years have prompted a slew of new products challenging the category leaders and escalating the battle for retail shelf space. Category leader Fever-Tree’s U.S. revenues surpassed £100 million ($131m) last year, roughly doubling since 2020, out of global sales of more than £350 million ($460m). Newer players are eager for a slice of the expanding pie.

Jones Soda Co, one of the leaders in the craft soda market—and increasingly active in cannabis drinks—in June announced a new line of premium mixers, offering six flavors in four-packs of 7.5 ounce cans. Topo Chico, the Coca-Cola-owned brand that hit it big a few years ago with its hard seltzer line, came out with a three-flavor mixer line in March. Many other brands—including both major players and independent newcomers—have also taken a shot at the growing segment.

U.K. brand Franklin & Sons is among those making inroads. Launched in the U.S. in 2020 in The Fresh Market grocery chain, distribution has expanded to include the Northeast, Texas, and select West Coast markets, mainly in natural and premium grocery stores. “The strategy for the U.S. market is long-term, and while it is a tough market to penetrate, the brand resonates exceptionally well, as consumers and retailers are seeking something new and Franklin & Sons is poised to meet that demand,” says Keith Beattie, director of sales at brand owner Global Brands.

Category leaders say they aren’t threatened by the newer players, and they welcome the buzz that often surrounds the new entrants. “Anytime you bring something new and exciting to the consumer, I think everyone gets a draft off that,” says Bob Arnold, CEO for Q Mixers. “We’ve seen a number of competitors come and go over the years. There are a couple of us that have remained that are steadfast with staying power.”

Charles Gibb, CEO, North America for Fever-Tree, notes that “none of them have made a significant dent on our business yet.” The brand’s quality, strong distribution, and laser focus on the mixer category only are key advantages, he says. “As new brands come in, retailers will often give them an opportunity, or they’ll have a specific relationship that gets a brand into an account for a period of time,” Gibb says. “And obviously retailers want to offer variety.” But he claims many aren’t generating enough sales to justify the space allotted to them. “I think every brand gets a shot, but if they don’t perform then retailers can’t keep them around for ever,” he says.

While mixer brands battle it out on retail shelves, Fever-Tree has made significant inroads into the on-premise in recent years, Gibb says, as bartenders embrace premium mixers’ quality and ease of use, especially in fast-paced environments. “On-premise is accounting for round about 20% of our business nationally and we see that percentage continuing to grow,” he says.

Another rising brand, Zing Zang, used to be 100% on-premise, but over the years volume has shifted more to the off-premise. The pandemic—when at-home cocktail making reached its peak—accelerated the move and now about 65% of volume is off-premise, according to CEO Brent Albertson.

Meanwhile, the rising tide continues to draw brands to the category. Also among those vying for share are Owen’s Craft Mixers, in which Live Nation and NBA star Jimmy Butler last year led an investment of $10 million, as well as Blake Lively’s Betty Buzz, which has amassed a loyal following that drove it to 250,000 cases last year, selling in 4-packs of 9-ounce bottles. —Carol Ward

Tagged : Fever-Tree, Premium Mixers, Q Mixers, Zing Zang

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