The ready-to-drink (RTD) category is skyrocketing in the age of COVID-19, thanks to shut-downs that continue to keep people in their homes and away from bars. 

As shown in a recent Drizly consumer report, Drizly saw the RTD segment grow over 400% in share of sales year-over-year in 2020. The vodka-based RTD, High Noon, tops Drizly’s chart as the highest-selling RTD this year. Despite technically being a vodka RTD cocktail product, High Noon has marketed itself as a hard seltzer to consumers.  

Liz Paquette, head of consumer insights at Drizly said this strategy, “has allowed High Noon to capture share of hard seltzer buyers and carry over into the RTD category.” 

High Noon is certainly dominating on Drizly. Not only is it the top-selling RTD brand on Drizly — it also holds the top seven SKUs on the site as well, with their variety pack in the number one slot.  

According to Drizly insights, consumers are drawn to simple ingredient RTD cocktails, such as takes on vodka-sodas and gin-tonics. 

“These offerings are lower calorie and lower sugar alternatives to other RTDs and often compete with hard seltzer,” said Paquette.

That is a major draw for many consumers that can no longer frequent their favorite happy hour spots — cocktails in a simple, easy to drink can. Paquette gave some advice to retailers looking to adapt to this COVID-19 shut down fueled RTD craze among consumers.

“We recommend retailers work closely with their wholesale partners to plan their RTD inventory,” says Paquette. “With supply challenges with popular brands like High Noon, consumers are searching for alternatives RTDs. Stocking other brands can differentiate retailers amongst their competition and attract new buyers.”

Uncertainty surrounding the pandemic will keep retailers on their toes. However, Paquette was confident that as COVID-19 related restrictions persist through the end of the year, so will the growth of the RTD category.

Producers should brace themselves for even more new entrants into RTD.

“It is likely we will see more national brand names in the liquor space launch their own RTD products,” Paquette said.

As product variety increases and more producers get into the RTD game, 2020 is looking to set up RTDs, including hard seltzers, for long-term future success. 

 “With recent and continued product innovation in the RTD space, there is certainly potential for it to become an even stronger category in [the] coming years,” Paquette said.

We will see how the RTD cocktail vs. hard seltzer branding plays out in the market with consumers. As the hard seltzer category grows, some RTD cocktails may begin to pivot the way they market their products. 

“As RTD brands position themselves as direct competitors to hard seltzer, the category has the opportunity to gain significant share in [the] coming years,” said Paquette. “Though the first hard seltzers were only released a few years ago, already the category accounts for 4 percent share of all sales on Drizly.”

 

Stephanie Meade
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