According to Coca-Cola Europacific Partners (CCEP), the alcoholic ready-to-drink (RTD) market in the UK is currently the largest in Europe and is expected to experience significant growth by 2030, chiefly driven by the popularity of pre-mixed cocktails. Major players in the RTD category include spirits behemoth Diageo, the owner of brands such as Smirnoff and Captain Morgan. Lauren Priestley, the head of category development for the off-trade, emphasises that the RTD category offers brands an opportunity to take popular out-of-home serves and package them conveniently, thus enabling them to be enjoyed on a broader range of occasions.
Independent retailers have a potentially significant role to play in the RTD category, particularly given that it is often driven by impulse purchases. Ben Anderson, the marketing director at Funkin Cocktails, suggests that small retailers should stock bestselling RTD cocktails that have widespread appeal, such as the Funkin Nitro Cans that come in Passion Fruit Martini, Pina Colada, and Strawberry Daiquiri flavours. He adds that Passion Fruit Martini is a must-stock item, as it accounts for one in every three pounds spent on cocktails and has propelled cocktails into the mainstream.
While the focus is mostly on RTDs, Priestley asserts that people have significantly changed the ways in which they socialise and, as a result, are socialising more frequently at home. She adds that people are increasingly experimenting with mixed drinks and creating elevated serves from home. Therefore, it is essential to have staples like vodka and gin, which are key ingredients in popular cocktails.
The growth of the cocktail market is also good news for sales of mixer drinks, and retailers should consider providing more options to consumers. Schweppes, for example, has innovated with the likes of Schweppes Elderflower Slimline tonic and Schweppes Pink Soda, which have both seen double-digit value growth. Furthermore, the display is crucial, and retailers should focus on creating an attractive display that contains all the necessary components, including complementary spirits, mixers, and even garnishes, to encourage incremental sales.
