Around a year ago, we looked at what trends would dominate the spirits markets over the following 12 months. Well, we don't like to be the ones who say, "We told you so," …but, well, we told you so.

Ready to Drink (RTD’s)

While Barrel Global focuses on providing our clients with a wide range of whiskey/bourbon, we are, of course, part of the wider spirits industry, and we also recognize that even we will drink non-whiskey spirits.

Last year, we noted that the 'Ready to Drink' (RTD) category was one to watch. An article from The Spirits Business, World Spirits Report 2024 (October 2024) leads with “…. the [] category saw volumes rise by 2% last year, led by Mexico and Germany.” *

An IWSR Strategic Report on the RTD market was released in late 2024. The report focuses on 10 key markets: Canada, the US, the UK, Mexico, Brazil, South Africa, Germany, China, Japan, and Australia. All these markets except Australia have recorded growth in this area.

Globally, in 2023, RTDs were the only category to post volume growth (and value growth of 7%), as other categories, including spirits, remained flat. The RTD category is forecast to continue with a predicted volume increase of 12%.

(*Figures released by the IWSR, the leading global drinks data and insight provider.)

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So why is the RTD category gaining popularity?

Many factors influence the choice of what to drink. These include geographic area, demographics, lifestyle, economic positioning, and ease of purchase and consumption.

While this sector is experiencing growth, other influences on the market are either already happening or beginning to happen.  Changes in drinking culture have always been present and will continue to be so.

Some are choosing to drink less alcohol overall, and RTDs present an easily calibrated lower abv option. For example, a standard whiskey available in a supermarket will be 40% abv at its lowest. However, an RTD whiskey and mixer is approximately 7% abv. Being able to purchase a drink that will always** be a specified abv helps people monitor their consumption more easily.

(**Even in a bar, when having drinks made for you, there will be some variation in how much alcohol is present.)

People are generally more interested in sustainability. The majority of RTDs come in easily recyclable aluminum (aluminium for UK readers) cans, which adds to the decision-making process.

RTDs are cheaper than buying a premium spirit, so people may choose this over a premium whiskey purchase. This correlates strongly with an economy experiencing a cost-of-living crisis. Spending decisions are changing for working-class people, and while going out is on the rise, an element of caution exists within spending patterns. Drinking at home, visiting friends, and picnics in parks are cheaper than heading out to a bar for drinks but also maintain the element of sociability we are looking for.

RTDs have a longer shelf/fridge life. However, they are not going to last forever. With terms like "shelf life,” "consume by," and “expiration date,” you may be wondering when you need to drink them. After a date expires, the quality of the drink will be less than if it was in date. RTDs that contain more natural ingredients, such as citrus juices, may have a shorter 'life' as they break down quicker and will affect the flavor of the drink.

This article from Post Meridiem takes a deeper dive into the life of an RTD: How Long Do Ready-to-Drink Cocktails Last? - Post Meridiem Cocktails (postmeridiemspirits.com)

Portability. RTDs are easy to transport and stock on shelves, both for the consumer and stockists. You can carry a can in your backpack or stick one in your pocket at a gig. For festivals and events, the ease of stocking and selling RTDs is preferable to messy and time-consuming pint pulling—a quick way to provide festival goers with what they want and less time waiting in queues. Of course, they won’t replace pint pulling, but the additional option may make that queue quicker, and you miss less of your event.

How do RTDs fit with the spirit industry's financial position?

Several recent reports have highlighted what appears to be a downturn in the spirits market, especially within the whiskey/whisky/bourbon sector. However, some have noted that this is a market correction after an acute period of growth (think the captive audience in their homes during the global COVID-19 pandemic).

This interview from the Spirits Business with Fawn Weaver, Founder of Uncle Nearest, gives a different view of the perceived downturn. Fawn Weaver: Fawn Weaver: 'Stop saying the spirits industry is in decline – it’s not' - The Spirits Business

All markets fluctuate in response to external factors. Most recently, global economies have been affected by the COVID-19 pandemic and the ongoing war in Ukraine, resulting in a widespread cost-of-living crisis. So, while there may be a momentary drop in market confidence, a longer-term view is that there is still overall growth while the market is correcting.

RTDs have been part of that growth and continue to be a valuable demonstration of companies pivoting to keep up with changing drinking and economic behaviors.

So, how do RTDs link with whiskey/bourbon cask investment?

For some, a lower abv whiskey/bourbon-based RTD cocktail may be the first step to becoming a whiskey/bourbon lover. For many, it's not a short hop from trying your first dram to investing in a cask or casks. It may be a few years of trying different drams, having the finance available, and deciding to invest.

For others, they may invest primarily to sell. Well, canning and entering the RTD market is always an option for the casks you own. Who's to say that indy (independent) and/or artisan RTDs won't be a future option? In fact, some places already create their cocktails on-site and can them.

With Barrel Global, the whiskey/bourbon world is your oyster with many possibilities, even within a changeable market.

If you are interested in barrel ownership, please contact our team of barrel experts. They will walk you through our process and find the right barrel(s) for your portfolio.

Barrel Global is on a mission to make whiskey barrel ownership accessible to collectors worldwide. As the first-ever global marketplace for whiskey barrels, you can connect with distilleries and collectors worldwide to build your own portfolio. For a whiskey experience unlike any other, request access today here: Barrel Global

Main picture credit: Nicole Herrero via Unsplash