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RTDs take on-trade share from spirits
The latest data from CGA’s On-Premise Measurement (OPM) tool revealed ready-to-drink (RTD) serves grew by 0.5 percentage points in the year to September 2024.
Spirits and wine lost 0.7 and 0.1 percentage points respectively.
The OPM tool tracks sales in the on-trade across the US.
It found RTDs are making the biggest gains in nightclubs, thanks to their ‘portability, consistency and speed of serve’. The category has gained 0.9 percentage points of total alcohol share in the channel year on year.
In bars, RTDs have taken 0.7 percentage points, with more modest gains in casual dining and fine dining venues, at 0.4 and 0.2 percentage points respectively.
By area, nightclubs in north-eastern states saw a bigger lift in year-on-year RTD growth, with Ohio achieving the highest uplift in value share. Nightclubs in New York and Pennsylvania also made significant gains.
Matthew Crompton, CGA by NIQ’s vice-president for the on-premise – Americas, said: “RTDs have made eye-catching inroads into the US on-premise this year, providing suppliers and venues with some welcome growth opportunities. Their convenience and speed of delivery make them ideal for high-tempo venues like nightclubs and late-night bars in particular.
“However, their rising popularity has attracted a wave of new entrants into the RTD segment, and competition for bar space and consumer attention is intensifying.”
Competition is driving producers to create better-quality serves, as demonstrated inn The Pre-Mixed, RTD & Hard Seltzer Masters 2024.
At the beginning of the year, SB predicted RTDs would grow in the on-trade in 2024.
The RTD category is predicted to be worth US$21.1 billion in sales by 2027.
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