The Rise of Canned Cocktails: A New Era in the Beverage Industry
A Growing Trend
Americans consumed over 62 million cases of ready-to-drink spirits in 2023, a 25% increase from 2022. The market has become the second-largest spirit category by volume, behind vodka.
The Malt-Based Drink Phenomenon
In 2016, White Claw launched and quickly became popular, providing an alternative to light beer. However, the market became saturated with new brands and flavors, leading to consumer confusion and a decline in sales.
The Shift to Canned Cocktails
Canned cocktails, which include spirits like vodka, tequila, or gin, have started to take market share in the ready-to-drink beverage category. From 2021 to 2023, malt-based drinks fell 8%, while spirits-based drinks grew 8% in share of market volume.
Market Dominance
More than half of the U.S. ready-to-drink spirits market is controlled by three brands: High Noon, Cutwater, and Nutrl. The largest player, High Noon, is owned by Gallo, while Cutwater and Nutrl are owned by Anheuser Busch InBev.
Beyond Beer
The beyond-beer segment, which includes both malt- and spirits-based beverages, represents less than 5% of U.S. sales for AB InBev and 7% for Molson Coors.
Industry Insights
"You have a 5-year, 6-year, 7-year trend of beyond beer growth, which has been pretty exponential. But these companies’ stock prices have done very little during that timeframe. So you know they’re not participating in it," said TD Cowen Managing Director Robert Moskow.
New Players in the Market
Coca-Cola has ventured into the alcohol space with its popular soft drinks, including a partnership with Brown-Forman’s Jack Daniels to create a canned version of a bar classic.
Conclusion
The rise of canned cocktails is a significant trend in the beverage industry, with a growing demand for spirits-based drinks. As the market continues to evolve, it will be interesting to see how the major players adapt and respond to the changing landscape.
FAQs
Q: What is the current market share of canned cocktails in the U.S.?
A: The market share of canned cocktails is growing, but exact figures are not publicly available.
Q: What are the top three brands in the U.S. ready-to-drink spirits market?
A: High Noon, Cutwater, and Nutrl are the top three brands in the U.S. ready-to-drink spirits market.
Q: Which companies are dominant in the beyond-beer segment?
A: AB InBev and Molson Coors are the dominant players in the beyond-beer segment, with a market share of less than 5% and 7%, respectively.
Q: What is the future outlook for the canned cocktail market?
A: The future outlook for the canned cocktail market is promising, with continued growth expected as consumers increasingly seek more convenient and flavorful beverage options.
