Product Innovation to Back Brand Standing in the Global Alcoholic RTD Market

Amidst the pandemic, alcoholic ready-to-drink beverages gained momentum across various countries, especially in the US and Japan. Moreover, the category has undergone a major transformation with new lifestyle-led launches, styled packaging, and product development. For instance, one of the recent launches includes hard seltzer iced tea by White Claw in the US containing refreshing brewed tea of multiple flavors, with 5% alcohol content.

Additionally, the pandemic has evidently alternated the functioning of various sectors, influencing changes in consumer behavioral patterns. Here, the ready-to-drink cocktails or pre-mixed beverages have emerged as convenient and healthy buy over hard liquor. Also, wine-based ready-to-drink beverages are likely to gain high traction among consumers in the upcoming years. These drinks are gaining popularity owing to their single-serve nature and relatively low costs.

Considering the growing health and wellness trend, RTDs have become lighter, with reduced carbs and alcohol content. This has encouraged several vendors to introduce new offerings containing low-alcoholic versions of spirits, wine, and beer. For example, FitVine offers gluten-free and vegan wine and sparkling varietals to consumers with an active lifestyle.

Product Developments and Launches by Top-Notch Companies:

A lifestyle beverage, in 2020, the brand introduced its ready-to-drink gin & tonic range in India. With an aim to offer craft spirit, non-alcoholic, and alcoholic drinks, the company introduced the link of fresh and socially responsible RTDs tapping into the Indian market. Its G&T range commenced with three flavors originals, cucumber, and lavender.

The Australian Scotch Whiskey brand launched its scotch and tonic ready-to-drink beverage for a light and long drink, targeting consumers shifting towards at-home consumption. Here, the company has used the classic pure Scot blended whisky containing honeyed flavor and citrusy tonic water.

Last year, the spirit company tapped into the RTD trend by introducing its real rum canned cocktails range, including flavors like lime & soda and rum punch. Now, it has expanded its product portfolio by launching orange, pineapple, mojito, and sunset punch flavors in a new variety pack. Moreover, Bacardi launched its app called Mix Lab, offering consumers a personalized experience of curating cocktails at home.

While innovation has been growing in the RTD sector, several major companies have expanded their footings by acquiring smaller brands. For instance, Bacardi acquired complete ownership of the premium-crafted and batched cocktail company named TAILS.

Future Outlook:

Given the current market scenario, it is quite possible to forecast the rise in at-home drinking trends, which will be backed by e-commerce sales. According to news reports, Vivina, a wine application, observed a massive hike in its sales, surpassing Black Friday sales in 2020. Besides the growth in e-commerce sales, the demand for drinks like kombucha and mixed-spirits will compel brand owners to innovate product offerings and marketing strategies to sustain in the ready-to-drinks industry.