Drizly Sees RTD Growth Continuing To Accelerate This YearMarch 25, 2021
Spirits-based RTD cocktails remain one of the hottest areas of the drinks market, with off-premise sales up by 147% in Nielsen channels in the week through March 13. That growth is likely to continue and could even accelerate further this year, according to Drizly, the beverage alcohol delivery platform recently acquired by Uber for $1.1 billion.
“Retailers should expect RTD sales to rise as the weather warms, similarly if not more significantly than last year, and should stock their shelves accordingly,” noted Liz Paquette, Drizly’s head of consumer insights.
E.&J. Gallo-owned High Noon Sun Sips vodka-based RTDs are driving category gains on Drizly, where the brand accounts for seven out of the top 10 most popular RTD cocktail offerings. Other top-10 cocktail players on Drizly include Skinnygirl Margaritas, Cutwater Tequila Margarita, and Jose Cuervo Authentic Lime Margarita.
According to Impact Databank, High Noon more than tripled in size to nearly 3 million 9-liter case equivalents overall in calendar 2020, while Jose Cuervo Margaritas jumped 42% to nearly 3.3 million cases and Cutwater more than doubled to 735,000 cases.
On Drizly, the average unit price of RTDs has increased 6% year-over-year in the past 12 months. “I think there has begun to be a perception shift around the quality of RTDs and their ingredients, which has made consumers willing to pay more for these products,” said Paquette, noting that the average High Noon variety pack unit price is 12% higher than the average unit price for top hard seltzer brands.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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