Ready-to-drink (RTD) alcoholic drinks have become one of the drinks industry’s biggest success stories in recent years. It is clearly more than just a passing trend—it's a revolution that's redefining the way consumers are having their drinks at home and while out and about.
From classic gin and tonics to innovative craft concoctions, these RTDs and canned cocktails are capturing the imaginations and taste buds of shoppers and makers alike, thus cementing their spot in licensed stores.
The alcoholic ready-to-drink (ARTD) segment has come a long way in the UK from the days when Bacardi Breezers were ruling the roost. Today, they are among the most innovative and creative drinks on the market, continually evolving and pushing the boundaries of the category.
The market was buzzing earlier too but it was Covid that accelerated the demand, innovation as well as the supply. It seems on the face of it a contradiction in terms. In a year when we were all confined to our homes and not able to go out to drink our favourite cocktails, sales of RTD products hit record sales. Everyone loved re-creating those special drinks at home and when they were offered with ready concoctions, they lapped it up.
Even after the restrictions were lifted, Brits are seen increasingly choosing to stay at home (partly due to cost-of-living crisis)yet still determined to enjoy their drinks by buying brands that had done all the hard work for them.
What’s exciting for the UK is that it still has huge untapped potential for RTDs compared to the rest of the world. The convenience sector is at the forefront of the RTD renaissance and new innovative brands are seen stealing share from the more established ones.
Clark McIlroy, Managing Director, Red Star Brands which distributes Four Loko in the GB market, says that RTDs are the fastest-growing category in alcohol section.
“Within the convenience sector, RTD growth sales by value are up by 13.8 per cent over the last year. Premium priced RTDs have grown faster than any other segment in the last two years, with an increase in spirit-based offerings and an increase in Higher ABV product launches,” McIlroy stated.
RTD brands like Four Loko deliver a convenient way to enhance parties, impromptu get-togethers, movie nights and at-home sporting occasions. Premium RTDs have grown faster than any other segment in the last two years, with an increase in spirit-based offerings and an increase in higher ABV product launches.
RTDs are continuing to perform brilliantly, with the cocktail segment leading the charge.
According to Ben Anderson, Marketing Director at FUNKIN COCKTAILS, convenience, portability and premiumisation have driven strong growth particularly in the convenience channel.
"Over the past year, RTD cocktail sales have surged to £138 million, marking a 12 per cent YOY increase – far outpacing the overall RTD market’s 6 per cent growth.
“In the impulse sector, these sales have grown even faster, hitting £17 million, up 25 per cent YOY. This trend highlights a significant opportunity for convenience retailers, as consumer demand for high-quality on-the-go beverages continues to rise.
“As the market continues to evolve, retailers can expect ongoing innovation in flavours and formats, making RTDs a must-stock.”
Vibrant world of RTDs
Vodka based drinks are the biggest subcategory within RTDs with over 37 per cent share and growing at 7.3 per cent. RTDs are enjoying a major period of reinvigoration and the forecast for them is extremely exciting, with fuller flavour profiles and higher ABV.
No wonder, this segment at the moment is buzzing with new names and variants.
In the past two years, the RTD category has seen over 300 new products enter the market, but only 15 per cent of those drive 80 per cent of the value. Four Loko, one of such drivers, is now one of the fastest growing RTD brands in the UK, adding £17.8m value growth to the grocery sector.
McIlroy tells Asian Trader, “Fuller flavour profiles are recruiting new consumers into the category with evidence through Four Loko White, which is the fastest selling SKU in GB Convenience, and now Dark Berry Burst which is also competing for the top spot.”
Four Loko, a vodka-based higher ABV drink with no caffeine, started out with just four lines but the range now extends to eight with the recent launch of Dark Berry Burst and more recently, Pink Melon. Additionalflavours include White, Strawberry Lemonade, Tropical, Blue, Fruit Punch and Gold.
Four Loko’s latest release Pink Melon, (8.4 per cent ABV) is an invigorating blend of refreshing watermelon, sweet raspberry and zesty lime, which comes in 440ml cans with an RRP of £3.49. Four Loko White is the fastest selling SKU (by value) and the brand is said to offer more value per point of weighted distribution than any other RTD brand in GB convenience.
Vodka-based RTDs which combine berries and fruits are increasingly popular as they deliver a mix of familiar and premium flavours to the consumer. The breadth of flavours offered by RTDs, the convenience of the format and their lower price point compared to their equivalents in pubs and bars makes them a firm favourite with cost-conscious younger consumers.
The future of RTDs will need to focus on balancing quality with convenience to deliver a clear USP in a crowded market.
Alcoholic RTD cocktails, like Jack Daniel’s and Coca-Cola RTD, which has generated nearly £36m worth of sales in GB since it launched in March 2023, are also a great option to keep on the shelves as they ensure some sureshot sales.
For big nights in and otherwise too, shoppers are constantly looking for convenient ways to enjoy a perfect serve every time, without the need for time-consuming mixing and preparation. Data shows that the ARTD category is worth £554m, highlighting the opportunity it brings for retailers.
Amy Burgess, Senior Trade Communications Manager at Coca-Cola Europacific Partners (CCEP), states, “To build on the success we’re currently having in the ARTD market, we recently launched new price-marked packs (PMPs) for our Jack Daniel’s and Coca-Cola alcohol ready-to-drink (ARTD) range to help convenience retailers provide visible value to shoppers and drive sales.”
To help convenience retailers provide visible value to shoppers and drive sales, CCEP recently launched PMPs for its Jack Daniel’s and Coca-Cola ARTD range at £2.39.
Price-marked packs crucial for independent and symbol convenience stores as they deliver reassurance that shoppers are getting value for money and in turn this can help drive rate of sale for retailers.
According to Elaine Maher, Associate Director, Alcohol Ready-to-Drink at CCEP GB, value remains a lead motivation for shoppers in convenience, followed by the demand for quality and brands which makes price-marked options. In fact, Jack Daniel’s and Cola-Cola Original Taste is already the leading SKU in the alcoholic RTD category, and a must-stock for convenience retailers.
The arrival of the Jack Daniel’s and Coca-Cola price-marked cans is being supported by POS materials and digital assets, alongside other items like fridge trays and clip strips. The PMP launch follows this summer’s “Born Ready to Reunite with Your Crew” campaign from Jack Daniel’s and Coca-Cola that was offering fans a chance to win £500 gig vouchers, and retailers a chance to win £2,000 for a summer social along with Jack Daniel’s and Coca-Cola merchandise.
Additionally, Coca-Cola Company also joined hands with Pernod Ricard to release Absolut Vodka & Sprite RTD. The design puts Absolut Vodka’s Iconic bottle shape front and centre, while the vibrant colour gradient reflecting the perfect mix of Absolut’s smoothness with Sprite’s highly refreshing lemon and lime flavour.
Absolut Vodka & Sprite 250ml cans at 5 per cent ABV have an MRRP of £2.30 in GB and are sold in case sizes of 12.
Burgess told Asian Trader, “We have also added to our ARTD portfolio with Absolut Vodka & SPRITE, which blends the smoothness of premium vodka, Absolut, with the loved lemon-lime soft drink, SPRITE, offering yet another refreshing alcoholic serve to enjoy at home.
“We also recently launched the brand’s ‘Planned for the Unplanned’ summer campaign, a digitally led marketing campaign including PR, social media and influencer activity, to build momentum behind the ARTD variant following its launch earlier this year.”
As the boom in popularity of premium canned cocktails shows no signs of slowing down, celebrities too have taken a fancy to alcoholic RTDs.
Earlier this year, Served, which is Ellie Goulding’s award-winning RTD brand, expanded its UK footprint with a nationwide launch of its premium 8 per cent ABV cocktails in more than 400 Tesco stores. The RTD brand is also available in Booker to service significant demand in the wholesale and convenience channels.
The launch continued Served’s triple-digit YoY growth trajectory, following success with grocers Ocado, Central Co-op and Morrisons.
Dean Ginsberg, Served co-founder, said at the time of the Booker listing, “Our insights show that younger drinkers are replacing beer, spirits and wine with premium ready-to-drink options that taste great and are easy to enjoy across a wide range of occasions; whether that’s on-the-go, at home, or out with friends.
“The ready-to-drink cocktail category grew by 14.6 per cent last year, with premium offerings driving the majority of this growth, so what excites us the most is the opportunity to trade consumers up from mainstream brands, to a premium proposition at an accessible price point, representing fantastic value.”
Goulding added, “We set out to create cocktails that are as fresh and delicious as the ones in your favourite bar, but in a convenient format, allowing everyone to enjoy a high-quality drinking experience, wherever they choose.”
To tap into the trend, Suntory Beverage & Food Great Britain and Ireland (SBF GB&I), producer of Lucozade and Ribena, also expanded into the alcoholic RTD market with the launch of Japanese RTD brand -196 in Great Britain. The company launched two flavours of the brand, Lemonand Grapefruit, both with six per cent alcohol content.
Since its launch by Suntory Holdings in Japan in 2005, -196 has been a well-established canned RTD alcohol brand in the country and continues to grow in popularity. Following successful launches in Australia (2021) and China (2023), this year the brand saw further global expansion to Great Britain, Germany, the US and Southeast Asia.
The brand promises to bring something new and different to the RTD alcohol category in Great Britain, combining a traditional Japanese spirit with modern technology to deliver an exciting new taste and experience for consumers.
While non-alcohol makers are increasingly coming up with exciting variants, the giants of the alcohol world are also ready with their game plan. Cîroc, Diageo’s super-premium vodka brand, is also expanding its presence in RTD category with the launch of a brand-new Cîroc Red Berry Sparkling Vodka Drink (5 per cent ABV), following the successful launch of Cîroc Summer Citrus (5 per cent ABV) and Cîroc Tropical Passion (5 per cent ABV) earlier this year.
This latest innovation brings Cîroc’s top performing flavoured vodka in the brand’s 70cl range to consumers in search of ultra-premium flavours in a convenient RTD format, with eye-catching 250ml cans that are now available to purchase across convenience and wholesale channels.
Michael Sotnick, Cîroc Brand Experience Manager, Diageo GB, said at the time of the launch in late August, “With flavoured vodka worth £28.5m in impulse convenience and the RTD category growing by 7.5 per cent in the convenience channel, there is an opportunity for Cîroc to expand its offering and introduce both new and existing consumers to our ultra-premium flavours in accessible, easy-to-drink formats, helping to elevate a wide variety of consumption occasions from picnics in the park to celebrations with friends and family at home.
“We’re therefore delighted to be launching the new Cîroc Red Berry Sparkling Vodka Drink, giving our customers across the wholesale and convenience channels the opportunity to drive interest amongst shoppers with innovative RTD options and premium flavours they know and love.”
Canned Cocktails
Among many other life lessons, Covid made people realise that making mixed drinks or cocktails at home can be a more affordable as well as super fun.
Consumers are looking to pair their favourite spirits with quality mixers like Schweppes Classic Tonic and Slimline Tonic so it is wise to stock in apt quantity in the chilled section.
To empower indie retailers, CCEP expanded its PMP range by introducing price-marked Schweppes 1-litre PET bottles. This enabled more convenience customers to enjoy the advantages of PMPs with Schweppes, which is sold more than any other mixers brand in the country.
Appletiser
Premium adult soft drinks, such as Appletiser, is also used widely as a flavoured base for cocktails and mocktails, or in a mixed drink, delivering a more sophisticated serve for any at-home occasion.
Since 2020, the UK has witnessed a meteoric rise in canned cocktail culture, igniting a trend that shows no signs of slowing down. They are popular as they are convenient and don't require any additional preparation. Projections suggest a robust compound annual growth rate of 16.2 per cent from 2024 to 2030.
Canned cocktails, which got a place on supermarket Waitrose’s latest annual Food and Drink Report that listed the recent trends, continues to rise in popularity and demand.
The canned cocktail category has grown from £4.7 million in 2004 to £94 million in 2024. Flavor and price are the biggest factors driving purchases, while celebrity endorsement and sugar content play a crucial role.
This segment is constantly seeing new launches so it is important to be aware what is being offered in the market. It is one of those things where shoppers tend to be experimental so it is wise to keep a section for new launches as well.
The original craft bottled cocktail specialist, World of Zing, recently announced a re-launch of its cocktail range, offering the world’s first range of RTD cocktails in Frugal Paper Bottles. Founded by Pritesh Mody, mixologist and regular presenter on Channel 4’s Sunday Brunch, World of Zing was launched as the first mainstream ready-to-serve cocktail company.
The new World of Zing Frugal Paper Bottle 70cl range has been expertly crafted and mixed to bartender strength ABVs between 15-18 per cent ABV. It is a perfect offering that comes in recyclable bottles that are lighter, safer, and better for the environment than glass.
The global producer and distributor of RTD drinks, Global Brands, has also launched a premium range of 8.4 per cent ABV cocktails named “be.”
It has launched five of the most popular cocktails in the UK, made from the finest spirits and juices including Passion Fruit Martini, Pina Colada and Strawberry Daiquiri (200ml) all of which are nitro infused for a smooth, velvety texture. They are being sold alongside a pre-shaken Margarita and a sparkling Paloma (250ml).
The launch of be. into the ever-growing premium canned cocktail market is seen as a strategic move of the drink's giant, which already produces successful cocktails brands like Shake Baby Shake and All Shook Up.
Suffolk-based Niche Cocktails has also announced the addition of two new flavours, Strawberry Daiquiri and Negroni, to its selection of “conveniently canned” drinks.
CEO of Niche Cocktails, Rob Breakwell, said at the time of the launch earlier this year, “These two launches add exciting new flavour profiles to our range of premium cocktails. Wild Strawberry Daiquiri is our twist on the Cuban classic and is perfect for those that enjoy a fruity, refreshing drink on long summer days, whilst our Negroni is a unique blend of bold and complex flavours for the more adventurous cocktail drinker.”
Niche Cocktails’ Strawberry Daiquiri is a delicate balance of rum, fresh lime, syrup and strawberries. A perfect blend of dry gin, sweet vermouth and Campari, Negroni is a mark of sophistication, known for its smooth balance of bitter and sweet flavours and ideal for those who enjoy a stronger flavoured cocktail.
Meanwhile, the spirit giant Diageo continues to spearhead innovation in the spirits sector and is not far behind in premium ready-to-serve cocktails. Recently, the maker launched a a brand-new trio of premium ready-to-serve Cocktail Collection created using three of Diageo’s leading brands– Johnnie Walker Old Fashioned cocktail (20.5 per cent ABV), Tanqueray Negroni cocktail (17.5 per cent ABV), and Cîroc Cosmopolitan cocktail (17.5 per cent ABV).
Each containing five serves, the cocktails have been specifically created for sharing and social occasions. The latest launch from Diageo taps into the “drinking less but better” trend, capitalising on the interest in premium spirits and consumer demand to have cocktails at home.
For the less experienced Brits, creating bar quality serves can be challenging, but the Cocktail Collection drinks are designed to be poured straight from the bottle or cans to make premium cocktails even more accessible. The portfolio is also available in 100ml can formats.
In fact, Diageo’s Cocktail Collection has been creating ripples in the market within just four months of launch. The Cocktail Collection has gone from strength-to-strength, spearheading the category, demonstrating the ongoing demand for convenient premium cocktails.
Another maker, Badwater Tequila has also dived into the world of cocktails with the launch of its debut RTD cocktail range with the same name. The refreshing Badwater Tequila range is available in three flavours in 330mlcans – Lime Margarita, Pineapple Crush and Grapefruit Paloma, all made with real fruit juice.
On the similar lines, popular gin brand Whitley Neill has announced its debut into the ready-to-serve category with the launch of three new variants thus delivering exceptional cocktails created with the brand’s award-winning Rhubarb & Ginger, Raspberry, and Blood Orange variants.
Designed to cater to consumers seeking convenient yet delicious cocktails to enjoy at home, Whitley Neill’s new releases “eliminate the need for bartending skills or a fully stocked bar”.
Another interesting launch in this aisle is Kir Royale RTD cocktail Chamère launched by Quintessential Brands in collaboration with Paramount and MTV Entertainment Studios, the producers of the hit Netflix series, Emily in Paris.
As we all know, the popular Netflix show Emily in Paris revolves around Emily who is an ambitious twenty-something marketing executive from Chicago, who unexpectedly lands her dream job in Paris. During Season 3 of the show, Emily tasted and loved the French cocktail Kir Royale and pitched it as an RTD to her agency clients.
Interestingly, the snippet touched a chord with the audience as shoppers picked up on the idea and the Kir Royale became one of the most searched for cocktails online, making it an overnight viral sensation. To tap into the trend, Quintessential Brands has brought the Chamère RTD to life with a sophisticated packaging design that encapsulates the Emily in Paris aesthetic.
Screenshot
The new Chamère ready-to-drink cocktail is 10.5 per cent ABV and is available in three SKUs- 250ml can (RRP from £4.00), 20cl (RRP from £7.95) and 75cl (exclusive to Travel Retail) bottles.
On the other hand, HEINEKEN UK is expanding the Red Stripe offering with the introduction of a brand-new range of RTD rum cocktails Rum Stripe by Red Stripe (7.5 per cent ABV).
The new range is available in three unique flavours- Rum Punch, Cherry & Cranberry and Pineapple & Coconut. The range aims to tap into Red Stripe’s unparalleled Jamaican heritage by combining a delicious mix of real fruit juices with a double measure of high-quality Caribbean rum. All three SKUs are also vegan friendly, with no artificial flavours or colours. The Red Stripe brand is worth £25.5m and is incredibly popular in convenience.
Beating the multiples
RTDs and canned cocktails, due to their impulsive affliation, are perfect fit for licensed convenience stores.
Independents have a strategic advantage when it comes to competing with larger multiples in the RTD sector and this is all down to the impulse nature of the category.
Anderson from FUNKIN Cocktails told Asian Trader, “Shoppers often stop by the chillers without a crystal clear idea of exactly what they would like to purchase, but with the intention of consuming their chosen beverage shortly after purchasing. This means independent retailers can really capitalise on this growing and valuable category easily by prioritising bestselling flavours and formats in this space.
“With RTDs, our merchandising advice has always been to prioritise these in the fridge – and this is particularly true in impulse. During times when you’re expecting a high footfall, as well as regularly restocking the chillers, also remember to stock up on FUNKIN's multipacks, such as our Mixed Cocktail Party Pack, to capitalise on group purchases.
"We’d recommend that independent retailers keep a close eye on any events in their local area which are going to be particularly appealing to young socialisers and tastemakers. Whether that’s seasonal events or concerts, there’s often an opportunity to capitalise on passing trade by making sure consumers’ favourite cocktails are on offer.”
Independents, unlike the multiples, have the flexibility to make frequent changes to range and space allocation in response to changing needs, while effective merchandising enables them to capitalise on top-up shops and impulse purchases.
McIlroy from Four Loko told Asian Trader, “The right price point is crucial as it allows consumers to experiment without spending too much. However, we are seeing a definite move towards premiumisation as shoppers opt for higher quality serves despite the cost of living crisis.
“Understand your customers’ needs – gain insight into their preferences and purchasing motivations. This will help you effectively cater to your target market.”
McIlroy advised indie c-store owners to build a strong local community presence to differentiate themselves from the multiples.
Smart merchandising and right messaging can also go a long way in creating excitmement among shoppers, thus encouraging them to try different flavours and variants.
“Create excitement and anticipation for NPD around the brand. This will help drum up valuable excitement and demand, stimulate trial and perhaps most importantly, drive footfall into store,” he said.
Cross-merchandise RTDs with complementary items like snacksis likely to encourage impulse purchasing and increase basket spend.
“Keep the range refreshed and use EPOS and category data to ensure you’re supplying what’s in demand. Make sure you’rein a position to meet changing needs.
“Stock the right range. Ensure the RTDs are easy to see and access, and showcase hero products and special offers. It’s particularly important to be mission critical – so where possible, chill RTDs to satisfy on-the-go demand and encourage impulse purchases,” McIlroy said.
These drinks are all about convenience, so make them an easy grab for anyone popping in for a quick purchase. Place your RTDs and canned cocktails at prominent locations where customers are likely to catch a glimpse and think, “Why not?”
Pop and Cheers
As competition in the canned cocktail arena intensifies, brands are relentlessly seeking ways to stand out in the market. The canned cocktail market is booming, with everyone from craft gin distillers to well-known beer brands jumping on board.
Make sure your store is well equipped to ride this wave. Consider highlighting your most popular brands with a “Trending Now” section. Additionally, consumers are gravitating toward premium RTDs infused with botanicals, herbs and artisanal spirits, reflecting a growing preference for elevated drinking experiences. Customers love trying the latest flavors, especially if there’s a recommendation involved.
Seasonal specials, limited editions, or even a “Staff Picks” section can create a sense of urgency.
Offer combo deals. Pair those canned mojitos with a bag of lime tortilla chips, or bundle that gin cocktail with a sharing pack newly launched snack item. Cross-merchandising like this not only boosts sales but also helps customers feel they’re getting more value for their money.
Ensure a selection of these ready-to-drink wonders is always chilled. No one wants to wait for their drink to cool down. A small fridge dedicated to cold RTDs in your alcohol section could be just the thing to boost sales.
Remember, when it comes to alcoholic RTDs and canned cocktails, you're not just selling drinks; you're selling convenience, fun, and a dash of indulgence. So have fun and be innovative. Bright colors, fun signage, and maybe a cheeky tagline like “Crack Open the Weekend” will not only draw customers in but will also make them coming back for more.
