Table of Contents
Executive Summary
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- The issues
- A third of consumers are drinking less RTD alcoholic beverages
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- Figure 1: Statements related to RTD alcoholic beverages – Change in consumption, September 2015
- RTD alcoholic beverages appear pigeonholed when it comes to consumption occasions
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- Figure 2: RTD alcoholic beverage occasions, September 2015
- Boosting perception of products in the category is in order
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- Figure 3: Correspondence analysis – Opinions toward alcoholic beverages, September 2015
- The opportunities
- Premiumization can enhance permissibility
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- Figure 4: Statements related to RTD alcoholic beverages – Innovation, September 2015
- RTD alcoholic beverage formulations could stand to lighten up
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- Figure 5: RTD alcoholic beverage formats – Light/low-calorie, by generation, September 2015
- Opportunity exists to expand chilled varieties
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- Figure 6: RTD alcoholic beverage formats – Format, by generation, September 2015
- What it means
The Market – What You Need to Know
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- FMBs see strong gains, while prepared spirits-based cocktails and wine cooler declines continue
- RTD alcoholic beverages are losing out to other alcohol types for share of stomach
- The category has failed to transform alongside an increasingly savvy drinking public
- Less than a quarter of respondents say products in the category are appropriate for drinking on-premise
Market Size and Forecast
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- Volume sales of FMBs grow 57% 2010-15
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- Figure 7: US volume sales and forecast of flavored malt beverages, 2010-20
- Figure 8: US volume sales and forecast of flavored malt beverages, 2010-20
- Prepared spirits-based cocktail decline slows
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- Figure 9: US volume sales and forecast of prepared spirits-based cocktails, 2010-20
- Figure 10: US volume sales and forecast of prepared spirits-based cocktails, 2010-20
- Wine coolers continue to struggle
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- Figure 11: US volume sales and forecast of wine coolers, 2010-20
- Figure 12: US volume sales and forecast of wine coolers, 2010-20
Market Perspective
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- RTD alcoholic beverages are losing out to other alcohol types for share of stomach
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- Figure 13: Alcoholic beverage consumption, September 2015
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- Figure 14: Alcoholic beverage consumption, by generation, September 2015
- Category could grow appeal by capitalizing on traits of other alcohol types
- RTD appears as a limitation among consumers interested in customization
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- Figure 15: Preferences for mixing own drinks versus using RTD products, by generation, September 2015
- Less than a quarter of respondents say products in the category are appropriate for drinking on-premise
Market Factors
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- Alcohol sales continue to rise; patterns favor on-premise consumption
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- Figure 16: Alcoholic beverages, total expenditures, 2000-13
- Pop culture and on-premise trends can inform category innovation
- Interest in health drives call for natural, less sugar
- Millennials and Hispanics influence taste preferences
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- Figure 17: Population by generation, 2015
- Figure 18: Population growth by race and Hispanic origin, 2010-20
Key Players – What You Need to Know
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- Party brands make way for a bit of sophistication
- Premium claims are on the rise
- Fruity flavors and familiar cocktail varieties wane
- A focus on health is taking shape
What’s Working?
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- Spirits- and wine-based cocktails see strong new product launch activity
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- Figure 19: Share of prepared spirits-based cocktail launches, by launch type, 2010-15
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- Figure 20: Share of wine-based cocktail launches, by launch type, 2011-15
- Premium claims on the rise
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- Figure 21: Share of FMB launches, by top six claims, 2011 and 2015
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- Figure 22: Share of prepared spirits-based cocktail launches, by top five claims, 2011 and 2015
- Figure 23: Share of wine cooler launches, by top six claims, 2012 and 2015
What’s Struggling?
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- Fruity flavors and familiar cocktail varieties are on the decline
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- Figure 24: Share of prepared spirits-based cocktail launches, by top five flavors, 2011 and 2015
- Packing a different kind of punch
- Party brands make way for a bit of sophistication
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- Figure 25: Share of prepared spirits-based cocktail launches, by top 10 brands, 2011 and 2015
- Figure 26: Share of FMB launches, by top nine brands, 2011 and 2015
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- Figure 27: Share of wine cooler launches, by top 10 brands, 2011 and 2015
What’s Next?
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- Premiumization may boost permissibility
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- Figure 28: Alcoholic beverage consumption, by consumption occasion, September 2015
- Brand cache
- Clean label
- Imported quality
- Sophisticated format
- Bringing health to an indulgence category
- Low alcohol
- Promoting produce, not parties
- Being both RTD and customizable
- Choice may be one form of customizability
- Recipes on pack
- Shots for trial, not over-indulgence
- Spirits selection to match larger drink trends
The Consumer – What You Need to Know
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- 39% of consumers aged 22+ drink RTD alcoholic beverages
- A third of respondents say they are drinking less products in the category than they were in the past
- Boosting perception is needed, particularly among Millennials and men
- Premiumization leads category innovation of interest
RTD Alcoholic Beverage Consumption
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- 39% of respondents drink RTDs; FMBs lead
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- Figure 29: RTD alcoholic beverage consumption, September 2015
- Men are more likely to participate in the category
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- Figure 30: RTD alcoholic beverage consumption, by gender, September 2015
- Millennials are the prime audience
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- Figure 31: RTD alcoholic beverage consumption, by generation, September 2015
- More than half of Hispanics drink RTDs
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- Figure 32: RTD alcoholic beverage consumption, by Hispanic origin, September 2015
- High-income earner and foodie-centric consumer base suggests room for premiumization
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- Figure 33: RTD alcoholic beverage consumption, by household income, September 2015
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- Figure 34: RTD alcoholic beverage consumption, by interest in food, September 2015
- A closer look at some key targets
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- Figure 35: Wine cooler consumption – CHAID – Tree output, September 2015
- Figure 36: Alcoholic beverage consumption – CHAID – Table output, September 2015
RTD Alcoholic Beverage Formats
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- Bottles lead over cans
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- Figure 37: RTD alcoholic beverage formats, September 2015
- Container
- Millennials open to less-traditional formats
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- Figure 38: RTD alcoholic beverage formats – Package type, by generation, September 2015
- Cans appeal to men; women and Hispanics open to pouches
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- Figure 39: RTD alcoholic beverage formats – Package type, by gender, September 2015
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- Figure 40: RTD alcoholic beverage formats – Package type, by Hispanic origin, September 2015
- Format
- Women and Millennials exhibit interest in multiserving varieties
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- Figure 41: RTD alcoholic beverage formats – Container, by gender, September 2015
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- Figure 42: RTD alcoholic beverage formats – Container, by generation, September 2015
- Variety represents value
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- Figure 43: RTD alcoholic beverage formats – Container, by household income, September 2015
- Storage
- Opportunity exists to expand chilled varieties
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- Figure 44: RTD Alcoholic beverage formats – Format, by generation, September 2015
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- Figure 45: RTD Alcoholic beverage formats – Format, by gender, September 2015
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- Figure 46: RTD alcoholic beverage formats – Format, by Hispanic origin, September 2015
- Light/low-calorie
- Light/low-calorie varieties find greater appeal among Millennials and Hispanics
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- Figure 47: RTD alcoholic beverage formats – Light/low-calorie, by generation, September 2015
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- Figure 48: RTD Alcoholic beverage formats – Light/low-calorie, by Hispanic origin, September 2015
Change in Consumption
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- A third of consumers are drinking less RTD alcoholic beverages
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- Figure 49: Statements related to RTD alcoholic beverages – Change in consumption, September 2015
- Prepared spirits-based cocktail drinkers exhibit greatest increase in consumption
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- Figure 50: Statements related to RTD alcoholic beverages – Change in consumption, by segment, September 2015
- Expanding flavor varieties grows consumption among category participants
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- Figure 51: Statements related to RTD alcoholic beverages – Change in prepared spirits-based cocktail consumption, September 2015
- Figure 52: Statements related to RTD alcoholic beverages – Change in prepared spirits-based cocktail consumption, September 2015
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- Figure 53: Statements related to RTD alcoholic beverages – Change in wine cooler consumption, September 2015
Consumption Occasions
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- Outdoor events lead for RTD alcoholic beverages
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- Figure 54: RTD alcoholic beverage occasions, September 2015
- FMBs appear slightly more casual among category participants
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- Figure 55: RTD alcoholic beverage occasions, by consumption, September 2015
- Millennials and Hispanics are open to a wide range of consumption occasions
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- Figure 56: RTD alcoholic beverage occasions, by generation, September 2015
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- Figure 57: RTD alcoholic beverage occasions, by Hispanic origin, September 2015
Opinions toward RTD Alcoholic Beverages
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- RTD alcoholic beverages segments experience similar limitation
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- Figure 58: Correspondence analysis – Opinions toward alcoholic beverages, September 2015
- Figure 59: Opinions toward alcoholic beverages, September 2015
- FMBs lead for flavor among women; prepared spirits-based cocktails are convenient
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- Figure 60: Opinions toward alcoholic beverages – Women, September 2015
- A third of men say they’d be embarrassed to drink RTD alcoholic beverages in public
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- Figure 61: Embarrassment related to drinking RTD alcoholic beverages, by gender, September 2015
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- Figure 62: Opinions toward alcoholic beverages – Men, September 2015
- Boosting perception among Millennials is in order
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- Figure 63: Embarrassment related to drinking RTD alcoholic beverages, by generation, September 2015
- Figure 64: Opinions toward RTD alcoholic beverages – Millennials, September 2015
- Negatives may outweigh the positives for Hispanics and prepared spirits-based cocktails
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- Figure 65: Opinions toward alcoholic beverages – Hispanics, September 2015
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- Figure 66: Embarrassment related to drinking RTD alcoholic beverages, by Hispanic origin, September 2015
- Non-drinkers say products lack in taste, quality
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- Figure 67: Opinions toward wine coolers, by wine cooler consumption, September 2015
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- Figure 68: Opinions toward prepared spirits-based cocktails, by prepared spirits-based cocktail consumption, September 2015
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- Figure 69: Opinions toward FMBs, by FMB consumption, September 2015
Purchase Drivers
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- Flavor leads purchase drivers, followed by brand
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- Figure 70: RTD alcoholic beverage purchase drivers, September 2015
- Women are particularly driven by flavor
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- Figure 71: RTD alcoholic beverage purchase drivers, by gender, September 2015
- Millennials less brand/flavor loyal, exhibit interest in health
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- Figure 72: RTD alcoholic beverage purchase drivers, by generation, September 2015
- Higher alcohol content finds appeal among Hispanics
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- Figure 73: RTD alcoholic beverage purchase drivers, by Hispanic origin, September 2015
Innovation of Interest
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- Nearly half of consumers interested in RTDs made with premium brands
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- Figure 74: Statements related to RTD alcoholic beverages – Innovation, September 2015
- RTD innovation may find particular appeal among men
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- Figure 75: Statements related to RTD alcoholic beverages – Innovation, by gender, September 2015
- Innovation is key to appealing to Millennials and Hispanics
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- Figure 76: Statements related to RTD alcoholic beverages – Innovation, by generation, September 2015
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- Figure 77: Statements related to RTD alcoholic beverages – Innovation, by Hispanic origin, September 2015
- Category participants want more
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- Figure 78: Statements related to RTD alcoholic beverages – Innovation, by consumption, September 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Consumer qualitative research
- Correspondence map methodology
- CHAID methodology
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 79: US volume consumption of beer by category, 2010-14
- Figure 80: US volume consumption of distilled spirits by category, 2013-14
- Figure 81: US volume consumption of wine by category, 2013-14
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Appendix – Key Players
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- Figure 82: Share of prepared spirits-based cocktail launches, by launch type, 2010-15
- Figure 83: Share of FMB launches, by top six claims, 2010-15
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- Figure 84: Share of prepared spirits-based cocktail launches, by top five claims, 2010-15
- Figure 85: Share of wine cooler launches, by top six claims, 2012 and 2015
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- Figure 86: Share of consumption by month, by segment, 2014
- Figure 87: Share of prepared spirits-based cocktail launches, by top five flavors, 2011-15
- Figure 88: Share of FMB launches, by top nine brands, 2011-15
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- Figure 89: Share of FMB launches, by top nine brands, 2011-15
- Figure 90: Share of wine cooler launches, by top 10 brands, 2011 and 2015
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