years, a host of new brands and packaging
has changed the landscape. This batch
of party-friendly RTS cocktails caters to
younger, trend-setting enthusiasts who
have developed a taste for mojitos and
other popular cocktails, but may have no
idea how to make them. The category is
also geared toward the price-sensitive
consumer who recognizes the conve-
nience and savings of not having to pur-
chase and make a cocktail from scratch.
Tom Tesauro, partner in Massachusetts-
based Yankee Spirits, says, “Many of our
customers are a bit intimidated and mysti-
fied when it comes to mixology. Ready-to-
drink offerings help them overcome this
challenge.” He adds that, as a category,
RTDs are young and volatile: “There is a
constant stream of new offerings as well as
frequent discontinuations.”
Similar to on-premise, the Margarita
is the most popular cocktail among both
RTS and RTD brands, followed by the
Cosmopolitan. Diageo controls more than
a third of the category with its offerings,
most notably under the Jose Cuervo and
T.G.I.Friday’sbrands.Lineextensionsfrom
Smirnoff and Captain Morgan continue
to perform well. Bacardi has maintained
a firm position with its Party Drinks
and Classic Cocktails lines. Kahlúa and
Jack Daniel’s are two other well-known
brands joining the ready-to-party
bandwagon.
Getting Skinny With It
There’s a notable catalyst to the growth
and innovation in the RTS category, and
it can be traced back to 2008, when on-
premise spirit sales declined 2.2%, the
first time the industry had seen a dip
since 1995. Consumers began to curtail
their spending by drinking at home more
often. About this time, popular reality TV
star Bethenny Frankel decided to launch
a calorie-conscious bottled Margarita
under the brand name Skinnygirl. It
was an overnight success, ultimately
purchased and extended by Beam Inc.
in 2011. The Skinnygirl brand grew by
Growth in the RTS category is proof that the industry should never overestimate the desire of
Americans to enjoy their cocktails with minimal effort and maximum convenience. VnC is among
several brands driving premiumization within the category.
10%
12.5%
12.5%
10%
12.5%-14%
15%
10%
1.75
L
1.75
L
1.75
L
750
ml; 1.75L
750
ml; 1.75L
750
ml; 1L; 1.75L
1.75
L
$11.99
$24.99
$19.99
$6.99; $12.99
$12.99; $19.99
$9.99; $12.99; $19.99
$11.99
Brand
ABV
sizes
SRP
jose cuervo margaritas
diageo
kahlÚa rts
pernod ricard
malibu cocktails
pernod ricard
margaritaville
gemini spirits
midori rts
campari america
old new england egg nog
ms walker
sauza
beam
To clarify, RTS products are distinct
from RTDs (ready-to-drink), which
are single-serve, often malt-based
brands. RTD cocktails represent
about 55% of the overall category,
with RTS making up the balance.
RTS vs. RTD