American spirits company Beam Suntory announced completion of the acquisition of On the Rocks Premium Cocktails. Its ready-to-drink (RTD) cocktails, such as the top shelf margarita and old fashioned, are part of the fastest growing alcohol category in the US.

Before the buyout, Beam Suntory owned a minority interest in the rapidly growing RTD company. On the Rocks uses high quality spirits to craft their RTDs, including ones made with the Beam Suntory brands, since the two struck up a partnership in 2018.

The Old Fashioned features a generous pour of Knob Creek Whiskey, the classic Margarita is made with Hornitos Tequila, the Cosmopolitan uses Effen Vodka, the Aviation is made with Larios Gin, and the Mai Tai with Cruzan Rum. Given the delicious collaboration between the spirits brands and the RTD makers, the move is a natural next step.

“On the Rocks is the pioneer in the premium pre-mixed cocktails category, and joining forces couldn’t come at a better time,” said Albert Baladi, president and CEO of Beam Suntory. “On The Rocks is perfectly positioned to address evolving consumer preferences, including convenience, quality, the emerging home-premise, and cocktails-to-go.”

“We have an ambition to become #1 in the spirits-based ready-to-drink market, and On The Rocks will be a key growth platform that we’ll build along with our fast-growing pre-mixed highball products.”

“We see tremendous opportunity to expand the OTR brand to new occasions, formats, cocktail recipes, and the low-ABV space.” -Albert Baladi, president and CEO of Beam Suntory

On the Rocks was founded in 2015 by Patrick Halbert, an entrepreneur and restauranteur, and Rocco Milano, a bartender. The company is dedicated to making RTD cocktails using top shelf liquor and premium natural ingredients.

RTDs have been growing in popularity along with hard seltzer and canned wine spritzers. As so many bars and restaurants are still facing restrictions due to the on-going COVID-19 situation, consumers are spending more time drinking at home and they’re looking for new options to replace their favorite restaurant & bar cocktails.

The RTD makers saw sales for On the Rocks Premium Cocktails double in the first six months of 2020 alone. The founders will stay heavily involved with On the Rocks under Beam Suntory’s management.

“On The Rocks is extremely proud of what we’ve accomplished and the leadership position we’ve built in this rapidly growing sector over the last five years,” said Halbert. “We are thrilled to join the Beam Suntory family, its world-class portfolio of premium brands, and its tremendous people. With our combined expertise in delivering quality and premium products, we’re confident that this is just the beginning as we pursue market leadership and delight consumers with high-quality premium cocktails in convenient formats.”

We are excited to see how On the Rocks Premium Cocktails expand under the guidance of Beam Suntory. Perhaps the company will introduce more RTDs using Suntory’s family of liquor, including the iconic whiskey Jim Beam.

As On the Rocks said, “life doesn’t wait for the bar; some moments call for a complex drink in an unconventional setting.” Expect to see their premium RTDs in more unconventional settings in the near future.

Erin Grafton
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