The IWSR Drinks Market Analysis projects that ready-to-drink beverages with alcohol (RTDs), a category which includes canned cocktails and the hard seltzer sub-category, will surpass traditional wine in volume consumption by the end of the year.

The wine industry is responding by shifting its focus and uncorking new ways to stay on trend in an RTD world.

Wine’s growth was fairly stagnant last year. The category only saw a 0.7% growth by volume in the US during a time when consumers were stuck at home and doing an unprecedented amount of drinking. Alcohol consumption as a whole increased by 2% in 2020, the most dramatic year-over-year growth the category has seen in almost two decades. RTDs, on the other hand, grew an impressive 62.3% by volume last year, with hard seltzer enjoying an astronomical 130% growth.

“Given the growth of this trend and the need to stay relevant, innovation within the wine industry is starting to quicken pace in regard to non-traditional wine options,” stated Brandy Rand, COO of the Americas for IWSR. “Several winemakers have already invested in the ready-to-drink space. Within the last several months alone, several major brands have introduced wine spritzers.”

Wine companies are scrambling to produce RTD wine-based beverages that appeal to canned cocktail and hard seltzer consumers. So far the strategy seems to be working. Nielsen recently reported that wine sales in the US dipped 1.5% between January and May of this year compared to RTD wine products, which reported a strong 18.4% growth over the same time period. Wine-based RTD beverages now make-up 9% of the broader RTD category.

Brands like Bubble Butt, a canned Rosé wine seltzer that launched in late 2020, are exciting new editions to the RTD category. Each can of Bubble Butt contains an ABV of 8.4% and, unlike the wine coolers of decades past, these wine seltzers are low in carbs (less than 8 grams) and low in sugars (2.5 grams). According to the company, 3 cans are equivalent in volume to 1 bottle of champagne.

Cool Cat Wine Spritzers launched in April of last year in New York and Georgia. The brand currently comes in two flavors–Original (Elderflower Mint Lime) and Citrus. Next week Cool Cat will add two new flavors to its repertoire, Berry and Grapefruit, and expand distribution into New Jersey. The brand, which was founded by Rocco Venneri, is minority-owned and operated. Each 12 ounce can contains an ABV of 6.9%. Cool Cat was recently named the Best Canned Cocktail at Seltzerland, the travelling hard seltzer festival, during the Tampa leg of the tour.

Barefoot, an E&J Gallo company known for its affordable selection of wines, entered the RTD market last year with a line of canned wine spritzers. Barefoot Spritzers are available in seven flavors including Pinot Grigio, Pink Moscato, Red Sangria, Crisp White, Rosé, Summer Red and Moscato. The spritzers come in 8.4 ounce cans and contain an ABV of 5.5%. They are sold in individual flavor packs as well as a 12-can variety pack.
“While there are some positive growth trends within the traditional wine segment, for many owners, having brand extensions that meet these changing consumer needs is a smart marketing strategy,” explained Rand.

Barefoot isn’t E&J Gallo Winery’s only RTD beverage, the company, which has produced an expansive portfolio of wines since 1933, released High Noon Vodka & Soda in 2019. High Noon is made with a real vodka base and real juice. The brand has skyrocketed in popularity over the last few years.

According to BackBar, the largest bar inventory software platform, High Noon overtook Bud Light Seltzer this year to acquire the third largest hard seltzer market share in on-premise locations (in BackBar’s inventory) at 10.4% after White Claw and Truly. Growing beyond wine was a smart move for E&J Gallo and something we will likely see more wine companies explore as the RTD category continues to explode.

The wine industry is embracing a RTD future with canned options and non-wine products. Consumers can expect more brands pivoting away from standard wine bottles and opting for innovative and trending RTD offerings.

Shirani Jayasuriya
Latest posts by Shirani Jayasuriya (see all)