Alcoholic RTDs – Making a Splash in the Canadian Market

At a time when people all over the world were confined to their homes with the Coronavirus pandemic looming large, a number of industries took a dip. However, in stark contradiction, the sales of alcoholic ready-to-drinks (RTDs) hit record sales. The situation was no different in Canada, with consumers seeking the convenience of enjoying these beverages at the comfort of their homes. Alcoholic RTDs, also known as alcopops, are mainly wine-based, spirit-based, or malt-based beverages. They come in a premixed form and are ready for consumption at any time.

The liquor consumption trend in the country has certainly shifted significantly in the past couple of years, including that for alcoholic ready-to-drinks. According to Triton Market Research, Canada’s alcoholic RTDs industry is poised to grow. Given the pandemic’s effects on the “new normal” lifestyle, consumers now tend to enjoy these drinks throughout the day more freely. But the reason for their stupendous success is more than one.

Here’s a look at some of the key trends influencing the beverage’s boom in the Canadian market:

Growing Preference by Health-conscious Consumers:

Health-conscious consumers prefer drinks with low to no alcohol content. Acknowledging the rising health and wellness trend, alcopop brands are offering products that appeal to this segment of potential buyers. These consumers largely prefer spirit-based RTDs due to their low carbohydrate content. Also, clean-label ready-to-drinks are rising in popularity. For instance, Social Lite Vodka claims to use 100% natural ingredients to make its products. Further, health-conscious Canadians are now turning to RTDs also because low-sugar varieties are becoming more readily available. An example of this is the hard seltzer White Claw, which was recently launched in the country.

Innovative Approach by Manufacturers:

Alcopops are among the most innovative drinks in the market, and the rising consumer interest for unique products and interesting experiences is driving their popularity. For instance, the craze for craft beer has spilled over into many other categories of alcoholic beverages, including RTDs. The number of craft RTD producers is thus escalating, and they are launching several products, particularly spirit-based drinks. For instance, Keurig Dr Pepper launched an RTD version of the Mott’s Clamato Caesar Extreme and Snapple Spiked Peach Tea Vodka. Also, ready-to-drink shots, such as Jalapeño Tequila Shaker Shots and Tequila Shaker Shots from Black Fly Beverage, are another impressive attraction.

Widening Consumer Base:

Compared to other types of liquor, RTDs have a larger consumer base, as youngsters and women widely prefer them. Youngsters, in particular, are always keen on trying new things. Alcoholic ready-to-drinks have thus caught their attention as they come in a variety of flavors. A prime example is Boldr Vodka Soda by Vancouver-based Aquilini Beverages, which is available in fruit flavors like Peach, Mango, Black Cherry, and Ruby Grapefruit.

Also, owing to their low alcoholic content, RTDs are primarily targeted at entry-level consumers, especially women. Toronto-based Labatt Brewing’s Bud Light Rita line of products such as Mang-O-Rita and Raz-Ber-Rita cater largely to women, and have continued to witness solid growth since their launch. Besides, alcopops are also affordable, which is why a growing number of people are attracted towards them.

What’s in Store for the Future?

Companies in the market have been molding their strategies to suit the evolving trends, and this has presented them with an array of new opportunities. Moreover, the future for alcopops seems bright as the government is gradually easing lockdown restrictions, which will bolster the sales from on-trade channels as well. In fact, even before the onset of the pandemic, the market in Canada was on an upward trajectory. And now, this growth will be supplemented by the shift in lifestyle patterns towards indulgent experiences at home. Simply said, the alcoholic beverage industry has always focused on innovation and shifting trends, which will help ready-to-drinks to continue to bloom through the changing times.

FAQs:

1. What are the Key Reasons for the Rising Popularity of Alcoholic RTDs?

Ready-to-drinks are served in a premixed form and can be consumed anywhere, at any time. The convenience offered by these products, along with the continuous innovation by market players, widespread availability, and affordable prices, are mainly driving their popularity.

2. Which are the Leading Players in Canada’s Alcoholic RTDs market?

Black Fly Beverage Co Inc, Diageo Plc, Keurig Dr Pepper Inc, EJ Gallo Winery Inc, Bacardi and Co Ltd, and Anheuser Busch InBev NV are some of the leading companies operating in Canada’s alcoholic RTDs market.

3. What makes Alcopops more Appealing to Health-conscious Consumers?

Alcopops have much lower alcohol content (5% abv) than traditional wines (12-15% abv) and spirits (>37% abv). And brands have tapped right into this opportunity to cater to the vast potential consumer base of health enthusiasts who want to be mindful of their drinking choices.