The Rise of Canned Cocktails: A New Era in Alcoholic Beverages
The world of ready-to-drink spirits has witnessed a significant shift in recent years. In 2023, Americans consumed an impressive 62 million cases of canned cocktails, marking a 25% increase from the previous year. This surge has catapulted canned cocktails to the second-largest spirit category by volume, trailing only vodka.
From Malt to Spirits: A Shift in Consumer Preferences
The launch of White Claw in 2016 revolutionized the industry, offering a refreshing alternative to light beer. However, the market soon became saturated with new brands and flavor options, leading to consumer confusion and a decline in sales. According to Spiros Malandrakis, head of alcoholic drinks research at Euromonitor International, “The plethora of new brands and flavor initiatives devalued the core proposition of the brands, causing consumers to take a step back.”
Canned Cocktails Take Center Stage
In response, canned cocktails, which feature spirits like vodka, tequila, or gin, have begun to gain traction. Between 2021 and 2023, malt-based drinks saw an 8% decline in market share, while spirits-based drinks experienced an 8% increase. This shift indicates a growing preference for more sophisticated, spirit-based beverages.
Market Dominance: The Top Players
Currently, three brands control over half of the U.S. ready-to-drink spirits market. High Noon, owned by Gallo, leads the pack, followed by Cutwater and Nutrl, both owned by Anheuser Busch InBev. While these beer giants have a significant stake in the market, their beyond-beer segment still represents a relatively small percentage of their overall U.S. sales.
A New Frontier: Beyond Beer
The growth of the beyond-beer segment, which includes both malt- and spirits-based beverages, has been exponential over the past 5-7 years. However, the stock prices of companies like AB InBev and Molson Coors have remained stagnant during this period, indicating a missed opportunity. As Robert Moskow, TD Cowen Managing Director, notes, “These companies are not participating in the growth trend.”
New Entrants: Soft Drink Giants
The spirits industry is also attracting attention from unexpected players. Coca-Cola, for instance, has ventured into the alcoholic beverage space with partnerships like the one with Brown-Forman’s Jack Daniels whiskey to create a canned version of a classic cocktail.
As the market continues to evolve, one thing is clear: canned cocktails are here to stay. With their convenience, variety, and sophistication, they are poised to revolutionize the way we enjoy spirits.
Leave a Reply