Canned Cocktails: The New Wave in the Alcoholic Beverage Industry
A Growing Trend
Americans consumed over 62 million cases of ready-to-drink spirits in 2023, an increase of almost 25% from 2022. This growth is attributed to the rise of canned cocktails, which have become a popular alternative to traditional spirits.
The Malt-Based Drink Boom
In 2016, White Claw launched and took the U.S. by storm. The malt-based drink provided an alternative to light beer, and sales soared over the next five years. However, the market quickly became saturated, leading to an oversaturation of new brands and flavors.
The Shift to Spirits-Based Drinks
Canned cocktails, which include spirits like vodka, tequila, or gin, have begun to take market share in the ready-to-drink alcoholic beverage category. From 2021 to 2023, malt-based drinks fell 8%, while spirits-based grew 8% in share of market volume.
Market Leaders
More than half of the U.S. ready-to-drink spirits market is controlled by three brands: High Noon, Cutwater, and Nutrl. High Noon is owned by Gallo, a winery that also owns brands like Barefoot and Andre. Cutwater and Nutrl are owned by beer giant Anheuser Busch InBev.
The Beyond-Beer Segment
The beyond-beer segment, which includes both malt- and spirits-based beverages, represents less than 5% of U.S. sales for AB InBev. It represents about 7% for Molson Coors.
Coca-Cola’s Entry into the Market
Coca-Cola has ventured into the alcoholic beverage space with a number of its popular soft drinks, including a partnership with Brown-Forman’s Jack Daniels whiskey to make a canned version of a bar classic.
Conclusion
The rise of canned cocktails is a significant trend in the U.S. ready-to-drink spirits market. With more consumers seeking convenient and flavorful alternatives to traditional spirits, it’s likely that canned cocktails will continue to gain popularity in the coming years.
Frequently Asked Questions
Q: What is the growth rate of ready-to-drink spirits in the U.S. market?
A: Ready-to-drink spirits in the U.S. market grew by almost 25% from 2022 to 2023.
Q: What is the current market share of malt-based drinks?
A: Malt-based drinks currently hold a 92% market share of the U.S. ready-to-drink spirits market.
Q: Which brands dominate the U.S. ready-to-drink spirits market?
A: High Noon, Cutwater, and Nutrl are the top three brands controlling more than half of the U.S. ready-to-drink spirits market.
Q: What is the beyond-beer segment’s market share?
A: The beyond-beer segment, which includes both malt- and spirits-based beverages, represents less than 5% of U.S. sales for AB InBev and about 7% for Molson Coors.
