Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- RTD alcoholic beverages are primarily an “also drink”
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- Figure 1: Alcohol consumption, September 2017
- RTD alcoholic beverages are pigeonholed for casual occasions
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- Figure 2: RTD alcoholic beverage consumption occasions, September 2017
- The category struggles with high sugar content, quality
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- Figure 3: Correspondence analysis – Perceptions of alcoholic drink types, August 2017
- The opportunities
- A quarter of RTD alcoholic beverage drinkers have increased consumption in the past year
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- Figure 4: Change in consumption, September 2017
- Flavor innovation plays a strong role in growing consumption
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- Figure 5: Reasons for drinking more RTD alcoholic beverages, September 2017
- Wine leads as alcohol of choice for ideal RTD
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- Figure 6: Ideal RTD alcoholic beverages – Alcohol type, September 2017
- What it means
The Market – What You Need to Know
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- Volume sales of FMBs grow 12% from 2012-17
- Prepared spirits-based cocktails are forecast to climb out of slump
- Wine coolers continue to decline, but at a slower rate
- RTDs are likely to be primarily an “also drink”
- 42% of US adults are currently trying to lose weight
Market Size and Forecast
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- Volume sales of FMBs grow 12% from 2012-17
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- Figure 7: Total US volume sales and forecast of flavored malt beverages, 2012-22
- Figure 8: Total US volume sales and forecast of flavored malt beverages, 2012-22
- Prepared spirits-based cocktails are forecast to climb out of slump
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- Figure 9: Total US volume sales and forecast of spirits-based prepared cocktails, 2012-22
- Figure 10: Total US volume sales and forecast of spirits-based prepared cocktails, 2012-22
- Wine coolers continue to decline, but at a slower rate
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- Figure 11: US volume sales and forecast of wine coolers, 2012-22
- Figure 12: US volume sales and forecast of wine coolers, 2012-22
Market Perspective
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- Volume sales of FMBs outpace alcohol overall; other RTD segments struggle
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- Figure 13: Total US volume sales of beverage alcohol 2012-16
- Figure 14: Total US volume sales of beverage alcohol 2012-16
- A quarter of consumers drink 3-4 types of alcohol
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- Figure 15: Repertoire of alcohol consumption, September 2017
- RTDs are primarily an “also drink”
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- Figure 16: Alcohol consumption, September 2017
- Cider, spirits, cocktail drinkers appear as strong targets for RTDs
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- Figure 17: RTD alcoholic beverage consumption – Any consumption, by alcohol consumption – Any consumption, September 2017
- The vast majority of alcohol consumption occurs off-premise
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- Figure 18: Leading cocktail mentions on menu, Q1-Q3 2017
Market Factors
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- 42% of US adults are currently trying to lose weight
- 84% of consumers are limiting the amount of sugar in their diet
Key Players – What You Need to Know
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- Cans see strong growth across segments
- Focus shifts to portability
- RTD alcoholic beverages struggle with high sugar content, quality
- Premiumization could serve as a boost
Company and Brand Sales of RTD Alcoholic Beverages
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- Jose Cuervo dominates MULO sales of premixed cocktails/coolers
- Seltzers experience strong dollar sales growth at MULO
- Sales of premixed cocktails/coolers
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- Figure 19: MULO sales of premixed cocktails/coolers, by leading companies and brands, rolling 52 weeks 2016 and 2017
- FMB brands bank on the old being new again
- Bud Light focuses on women, aims at cocktail positioning
- MillerCoors taps into nostalgia with limited-edition return of Zima
What’s Working?
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- New product activity stalls, attention is placed on packaging
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- Figure 20: Flavored malt beverage launches, by launch type, 2013 and 2017*
- Figure 21: Prepared spirits-based cocktail launches, by launch type, 2013 and 2017*
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- Figure 22: Wine cooler launches, by launch type, 2013 and 2017*
- Cans see strong growth across segments
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- Figure 23: Flavored malt beverage launches, by pack type, 2013 and 2017*
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- Figure 24: Prepared spirits-based cocktail launches, by pack type, 2013 and 2017*
- Figure 25: Wine cooler launches, by pack type, 2013 and 2017*
- Focus shifts to portability; premiumization could be used as a boost
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- Figure 26: Flavored malt beverage launches, by leading claims, 2013 and 2017*
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- Figure 27: Prepared spirits-based cocktail launches, by leading claims, 2013 and 2017*
- Figure 28: Wine cooler launches, by leading claims, 2013 and 2017*
- Tropical flavors come out on top for wine coolers, but a large segment of the category is falling behind in flavor innovation
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- Figure 29: Leading wine cooler flavors consumed, Spring 2017
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- Figure 30: Flavored malt beverage launches, by leading flavors, 2013 and 2017*
- Figure 31: Prepared spirits-based cocktail launches, by leading flavors, 2013 and 2017*
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- Figure 32: Wine cooler launches, by leading flavors, 2013 and 2017*
What’s Struggling?
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- RTD alcoholic beverages struggle with high sugar content, quality
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- Figure 33: Correspondence analysis – Perceptions of alcoholic drink types, August 2017
- Figure 34: Perceptions of alcoholic drink types, August 2017
What’s Next?
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- Wine-based RTDs can boost perception of premium
- Category can piggyback on the success of coffee/tea categories
- Let’s be clear
The Consumer – What You Need to Know
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- 45% of drinkers consume RTD alcoholic beverages
- A quarter of RTD drinkers have increased consumption in the past year
- RTD alcoholic beverages are associated with casual occasions
- Flavor plays a strong role in consumption decision
- Wine leads as alcohol of choice for ideal RTD
- Fruit juice leads as mixer of choice for ideal RTD
Who’s Drinking RTD Alcoholic Beverages?
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- 45% of drinkers consume RTD alcoholic beverages
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- Figure 35: RTD alcoholic beverage consumption – Any drink, September 2017
- Women make up 63% of wine cooler drinkers
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- Figure 36: Share of alcohol consumption – Any drink, by gender, September 2017
- Seagram’s and Bacardi Party products have strongest appeal among women
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- Figure 37: Flavored alcoholic beverages – Share of brand usage, by gender, Spring 2017
- Figure 38: Coolers – Share of brand usage, by gender, Spring 2017
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- Figure 39: Prepared cocktail mixes with liquor – Share of brand usage, by gender, Spring 2017
- RTD alcoholic beverage drinkers skew younger
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- Figure 40: Share of alcohol consumption – Any drink, by age, September 2017
- Established brands perform better with older drinkers, younger drinkers open to variety
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- Figure 41: Flavored alcoholic beverages – Share of brand usage, by age, Spring 2017
- Figure 42: Prepared cocktails – Share of brand usage, by age, Spring 2017
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- Figure 43: Coolers – Share of brand usage, by age, Spring 2017
- Alcoholic seltzers may do well to attract higher earners to the category
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- Figure 44: Share of alcohol consumption – Any drink, by HH income, September 2017
- Figure 45: Flavored alcoholic beverages – Share of brand usage, by HH income, Spring 2017
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- Figure 46: Prepared cocktail mixes with liquor – Share of brand usage, by HH income, Spring 2017
- Figure 47: Coolers – Share of brand usage, by HH income, Spring 2017
- 20% of wine cooler drinkers are Black
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- Figure 48: Share of alcohol consumption – Any drink, by race, September 2017
- Bacardi, Seagram’s, and Arbor Mist resonate with Black drinkers
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- Figure 49: Flavored alcoholic beverages – Share of brand usage, by race, Spring 2017
- Figure 50: Prepared cocktails – Share of brand usage, by race, Spring 2017
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- Figure 51: Coolers – Share of brand usage, by age, Spring 2017
- Hispanic drinkers are more willing to experiment with RTDs
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- Figure 52: Share of alcohol consumption – Any drink, by Hispanic origin, September 2017
- Well-known brands hit the mark for Hispanic drinkers
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- Figure 53: Flavored alcoholic beverages – Share of brand usage, by Hispanic origin, Spring 2017
- Figure 54: Prepared cocktails – Share of brand usage, by Hispanic origin, Spring 2017
Change in Consumption
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- A quarter of RTD alcoholic beverage drinkers have increased consumption in the past year
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- Figure 55: Change in consumption, September 2017
- Flavor innovation plays a strong role in growing consumption
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- Figure 56: Reasons for drinking more RTD alcoholic beverages, September 2017
- Alcoholic seltzers may be growing category participation
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- Figure 57: Change in consumption, by RTD alcoholic beverage consumption, September 2017
Consumption Occasions
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- RTD alcoholic beverages are pigeonholed for casual occasions
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- Figure 58: RTD alcoholic beverage consumption occasions, September 2017
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- Figure 59: RTD alcoholic beverage consumption occasions, by RTD alcoholic beverage consumption, September 2017
- Men are significantly more likely to associate RTDs with bars
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- Figure 60: RTD alcoholic beverage consumption occasions, by gender, September 2017
- Younger consumers are more open-minded about RTD occasions
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- Figure 61: RTD alcoholic beverage consumption occasions, by age, September 2017
- Alcoholic seltzer may appear as a more sophisticated choice
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- Figure 62: RTD alcoholic beverage consumption occasions, by RTD alcoholic beverage consumption, September 2017
Consumption Drivers
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- Flavor plays a strong role in consumption decision
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- Figure 63: RTD alcoholic beverage consumption drivers, September 2017
- Women are particularly driven by flavor, men are attracted by brands
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- Figure 64: RTD alcoholic beverage consumption drivers, by gender, September 2017
- Young consumers are particularly drawn to the details of the alcohol
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- Figure 65: RTD alcoholic beverage consumption drivers, by age, September 2017
- Alcoholic seltzer drinkers are most likely to be interested in health-related elements
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- Figure 66: RTD alcoholic beverage consumption drivers, by RTD alcoholic beverage consumption, September 2017
Ideal RTD Alcoholic Beverage
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- Alcohol type
- Wine leads as alcohol of choice for ideal RTD
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- Figure 67: Ideal RTD alcoholic beverages – Alcohol type, September 2017
- Wine-based RTDs present opportunity to appeal to women
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- Figure 68: Ideal RTD alcoholic beverages – Alcohol type, by gender, September 2017
- Young drinkers are particularly interested in vodka-based drinks
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- Figure 69: Ideal RTD alcoholic beverages – Alcohol type, by age, September 2017
- Wine-based drinks have particular appeal among higher earners
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- Figure 70: Ideal RTD alcoholic beverages – Alcohol type, by HH income, September 2017
- Mixer type
- Fruit juice leads as mixer of choice for ideal RTD
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- Figure 71: Ideal RTD alcoholic beverages – Mixer type, September 2017
- Men are more open to splurges than are women
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- Figure 72: Ideal RTD alcoholic beverages – Mixer type, by gender, September 2017
- Tea-based drinks could appeal to a key consumer group
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- Figure 73: Ideal RTD alcoholic beverages – Mixer type, by age, September 2017
- More than a quarter of Asian drinkers are interested in coffee-based RTDs
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- Figure 74: Ideal RTD alcoholic beverages – Mixer type, by race, September 2017
- Other features
- Drinkers are most interested in single-serving RTDs in glass bottles, from well-known alcohol brands
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- Figure 75: Ideal RTD alcoholic beverages – Other features, September 2017
- Cans also have stronger appeal among 25-44s
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- Figure 76: Ideal RTD alcoholic beverages – Other features – Pack type, by age, September 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Repertoire analysis methodology
- Abbreviations and terms
- Abbreviations
Appendix – Key Players
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- Figure 77: Flavored malt beverage launches, by launch type, 2013-17*
- Figure 78: Prepared spirits-based cocktail launches, by launch type, 2013-17*
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- Figure 79: Wine cooler launches, by launch type, 2013-17*
- Figure 80: Flavored malt beverage launches, by pack type, 2013-17*
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- Figure 81: Prepared spirits-based cocktail launches, by pack type, 2013-17*
- Figure 82: Wine cooler launches, by pack type, 2013-17*
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- Figure 83: Flavored malt beverage launches, by leading claims, 2013-17*
- Figure 84: Prepared spirits-based cocktail launches, by leading claims, 2013-17*
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- Figure 85: Wine cooler launches, by leading claims, 2013-17*
- Figure 86: Leading wine cooler flavors consumed, spring 2017
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- Figure 87: Flavored malt beverage launches, by leading flavors, 2013-17*
- Figure 88: Prepared spirits-based cocktail launches, by leading flavors, 2013-17*
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- Figure 89: Wine cooler launches, by leading flavors, 2013-17*
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