From mojitos to espresso martinis, RTD cocktails are thriving. Learn what’s driving this popularity and what manufacturers can do to meet demand.

RTD (ready to drink) cocktails are precisely what they sound like: pre-mixed alcoholic beverages that are ready to enjoy immediately after opening. 

You’ve seen them at bars and liquor stores, and you’ve probably even spotted them in restaurants or the beer aisle at your local grocery store. From classic margaritas and palomas to trendy espresso martinis and negroni sbagliatos, you can find a canned version of just about every cocktail at this point. 

They’re also arguably one of the beverage industry’s largest successes in recent years. According to data from Mintel, RTD spirit-based cocktails had a 226% increase in volume sales from 2016 to 2021. This makes them one of the fastest-growing alcoholic beverage segments during that time.

Even after pandemic restrictions were lifted, consumers kept up demand for these drinks, which led to a whirlwind of product launches that created more competition and made catching consumer attention more difficult. As the category has matured and growth has stabilized, consumer values regarding RTDs are becoming clearer.

Learn what’s driving ready to drink cocktail popularity and what manufacturers can do to keep their beverages in demand.

The History of RTD Cocktails

While it can seem like these beverages simply sprung into existence a handful of years ago, ready to drink cocktails have been around for quite some time. 

In 1859, Andrew Heublein opened a hotel in Hartford, Connecticut, which he later passed on to his sons. They eventually offered bottled cocktails so guests could take them home, and these were later sold nationwide and renamed Club Cocktails. Demand remained steady at the turn of the century because most people still viewed mixing their own drinks as a task best left to bartenders.

Heublein weathered Prohibition by producing and distributing non-alcoholic products like A1 Steak Sauce. After the repeal, they resumed selling alcoholic beverages, but premixed drinks didn’t make much of a comeback until after World War II. 

Home entertaining was back in vogue in the 1960s. (“Better cocktails than most people make,” claimed one 1964 ad for Heublein’s bottled product.) Taking notice, the company published The Heublein Party Guide: Home Entertainment Made Easy, which included cocktail recipes to promote their spirits. Premade drinks nevertheless remained popular, and soon, cans overtook bottles thanks to developments in the canning industry.

The Intoxicating History of the Canned Cocktail

Smithsonian Magazine

Ready to drink cocktails underwent quite an evolution between the 1970s and 2010. There was the switch from glass bottles to cans, industry shake-ups, and a flurry of beverage innovations. Their popularity waned during the 1990s, but these beverages came roaring back onto the scene in 2016.

The White Claw Effect: From Hard Seltzers to Spirit-Based RTD Cocktails

If you don’t know the history of canned cocktails, you might assume that White Claw pioneered the RTD beverage category. That’s how big of an impact these beverages had when the Mark Anthony Group launched them in 2016. 

Spiked seltzers, and even NA seltzers like LaCroix, had been growing in demand in the years before this. These drinks were tasty, low in calories, and affordable. That last one is particularly important. One reason consumers in the 1990s may have cooled on canned cocktails was price. Tax laws required that distilled spirit-based beverages be taxed higher than brewed beverages like beer.

The alcohol in many hard seltzers, on the other hand, is made from cane sugar that ferments during the brewing process. This allows them to be sold at a lower price point than wine or spirit-based beverages. So, when White Claw hit shelves in 2016, it hit all the major features consumers were looking for — big, delicious flavors with low calories, low ABV, and low price. Competitors like Truly also found success, but none gained the same notoriety that White Claw attained. 

That makes it sound like high-ABV beverages were on the way out, but the pandemic created the perfect scenario for spirit-based RTDs to succeed as well. Even with bars off-limits, consumers wanted bar-quality cocktails. Brands like Cutwater and High Noon met this demand and helped solidify this subcategory.

Why Are Ready to Drink Cocktails So Popular Today?

For consumers, the appeal of RTD cocktails comes down to flavor, convenience, and consistent quality… but mostly flavor.

Considering that many of these beverages are canned versions of cocktails previously mixed by bartenders, this makes a lot of sense. Consumers want the familiar flavors of these cocktails, they don’t want to mix them themselves, and they still want bar-quality drinks that have the same great taste every time. 

Additionally, RTD cocktails are portable, making them ideal for social gatherings outside of the bar scene. Since they’re shelf-stable, consumers can store them in the pantry for later, pack them in a cooler for camping or tailgating, or keep them cold in the fridge for whenever a craving strikes. 

Plus, individual consumers aren’t the only ones driving demand. From bars and stadiums to restaurants and hotels, RTD cocktails offer several advantages over hand-mixed cocktails. 

Bartenders can only mix and serve so many drinks in a short amount of time. For example, imagine a bar that’s at capacity and woefully understaffed. Before canned cocktails, this would have resulted in long waits, rushing bartenders, unhappy customers, etc. If patrons are able to order, pay, and quickly receive canned cocktails, however, many of these issues disappear.

Flavor Innovation & Flexibility Key for RTD Cocktail Manufacturers

One of the most important things for manufacturers to remember is that consumers don’t want to sacrifice quality and taste for convenience. In the past, consumers may have accepted that a convenient beverage might not be the best-tasting or highest-quality. Today, that won’t fly.

With advancements in packaging and production techniques, brands can lock in freshness and flavor. When it comes to flavor, consumers want both the familiar taste of their preferred cocktails and the option to try a wide range of innovative flavors. This not only caters to individual preferences but also encourages consumers to experiment with novel flavors and combinations.

A great example of this comes from Southern Champion. They manufacture those small, colorful bevs called Buzzballz that you might have seen at convenience stores. In an interview with NACS, Southern Champion executive vice president of sales and marketing Tracy Frisbie explained that flavor is the number one driver for consumers when purchasing these drinks at convenience stores. New and interesting flavors appeal to consumers, so flavor innovation is key.

From exotic fruit infusions to unique botanicals, consumers are drawn to unique flavors. RTD cocktails are uniquely suited to this type of innovation, but changing consumer tastes also means that manufacturers need to incorporate flexibility into their processes to keep up with trends.

Fredrik Syren, global managing director for Pernod Ricard’s RTD and convenience business unit, explained in an interview that the fast-moving nature of convenience beverages requires adaptability. “This has required us to adapt our ways of working to have a more flexible and agile approach, to innovation in particular, and to strongly compress our new product development timelines and our time to market.”

Skyfarm | RTD Flavor Innovation With No Workflow Modifications

Want high-intensity Strawberry for a canned strawberry margarita? The juiciest Peach flavor for your RTD bellini? Maybe you want to create a flavor fusion of Guava and Watermelon! Whatever the case, our TTB-approved Skyfarm Series is perfect for ready to drink cocktails, beer, and non-alcoholic beverages. 

Built from the ground up using isolated terpenes to provide the brightest fruit flavor expression possible, Skyfarm gives you the ultimate flavor consistency, no added sugar or calories, and a label with “natural flavors” on your ingredient list.

Plus, incorporating Skyfarm into your beverage formulations couldn’t be easier. These high-amplitude, recognizable fruit flavors can be added directly to your existing workflow with no modifications. That means no special handling, no additional equipment, and even simple storage.

Contact us today, and let’s formulate your RTD beverages with the most vivid flavors and aromas of fruit.