Diversifying the Market
Bottled cocktails are gaining popularity and encroaching on the wine and beer market. Major drinks companies like Diageo, Pernod Ricard, and Beam Suntory have recognized the potential of this fast-growing “ready-to-serve” cocktail market, investing in holiday-themed marketing and advertising for their products. Diageo aims to become the market leader in this category and plans to expand its range of cocktails in the near future.
According to IWSR Drinks Markets Analysis, the “ready-to-drink” alcohol market, which includes canned cocktails and hard seltzers, is projected to reach $21.1 billion in the United States by 2027. This growth reflects the rising demand for more premium and expensive products, as well as cocktails and long drinks. It could also accelerate a shift away from traditional drinks like beer and wine, which have long dominated the easy tipple market.
Public health organizations, such as the World Health Organization, are shifting their focus to alcohol after making significant strides in addressing the health risks associated with smoking. Alcohol is considered a causal factor in over 200 diseases and conditions. While pricier than other options, bottled cocktails from Pernod and Diageo are finding their niche in the market.
Expanding Opportunities for the Hospitality Industry
The rise of bottled cocktails is providing new opportunities for venues that lack the resources for full mixology services. Mixologists like Lynnette Marrero and whiskey maker Beam Suntory are capitalizing on this trend, offering their own range of bottled cocktails. Bottled cocktail sales have seen substantial growth, particularly for cocktails like the Bloody Mary, Martini, and Negroni.
As the category continues to expand, it is occupying more shelf space and making its way into new channels like airlines, which traditionally focused on wine, beer, and seltzers. Beam Suntory plans to maintain its market leadership position by creating new, localized cocktail mixes that cater to regional trends. Ultimately, the convenience factor is a significant driver for consumers seeking ready-made cocktail options.