The RTD Revolution

Sep. 12, 2017

Why are Ready To Drink products suddenly on the rise again? Consumer trend investigators at Research and Markets are predicting a 7.36% surge in the global RTD market over the next four years, and according to Nielsen, domestic sales in the category are up 2.2% over the last year. Not long ago, the RTD category had a less-than-premium reputation with consumers, but that is all changing, thanks to a new landscape of high-quality RTD products and a generation of consumers ready to embrace them. Playing to the strengths of modern RTDs can turn them into a sales powerhouse for your business.


Cocktail culture is booming in on-premise establishments as bartenders are elevating mixed drinks to an art form. Meanwhile, RTDs provide consumers with a way to enjoy cocktails at home for a fraction of the price and with virtually no effort. Rather than stocking a full bar and mixers, consumers are able to enjoy an expertly-mixed drink whenever they choose. According to researchers at FONA, 55% of millennial consumers enjoy RTD alcohol beverages. Of course, for consumers to enjoy a premium cocktail out of a can, bottle or bag, that drink needs to be a high-quality product.


Research and Market’s global report on the RTD industry concluded that “premiumization” of the products is a major driving force behind current and projected growth in the category. As consumers become savvier and more demanding of their purchases, they are also more willing to pay more for a premium product. Producers are responding by raising the bar in terms of ingredients: pure cane sugar instead of corn syrup, real cream replacing imitations, real fruit, premium teas and more. In addition, producers are meeting the demand for products that address the needs of organic, gluten-free, Kosher and other niche consumers through an ever-increasing array of innovations.


On-premise cocktails continue evolve, and so do RTDs as suppliers launch new innovations at breakneck speed to keep pace with trending spirits and recipes. The result is a panoply of brands and flavors for consumers to sample, as the low cost of single-serving RTDs facilitates consumer experimentation. Talk to your Breakthru Sales Consultant about our portfolio of crowd-pleasing RTD options and how you can leverage them to help your business grow in this often-overlooked category.

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