Feature: RTDs – packaged and draught

As some of the Pub & Bar team are part of the tail end of the Millennial generation, we can remember with fond nostalgia the rise of specific ready-to-drink (RTD) brands back in the late 90s and early noughties. Indeed, the popularity of certain serves was so strong that the ‘impact’ of these heavily marketed (and consumed) drinks was a regular inclusion in the mainstream news cycle. It was a busy time for this category. 

Smirnoff Ice, WKD Blue, Hooch. These were certainly three of the biggest sellers around the UK at the time and, as we know, popularity is a cyclical beast, meaning certain brands, flavours and products are once again having their time in the sun. What’s more, with the progression in format and serve within the RTD space, consumers are no longer just buying bottles in this category – cans and draught have also done their bit to increase options and expand preferences. 

“In the past 12 months, RTDs have experienced strong growth, with traditional brands like Smirnoff Ice having a resurgence,” says Booker category manager Peter Bridge. “While established RTDs continue to thrive, there’s a noticeable shift towards canned options like AU and Cîroc. These premium brands, which Booker supplies, are known for their sleek packaging and appeal to younger consumers.”

Bridge is on the money here, as the brand presence of certain RTDs continues to interact with younger consumers at various touchpoints in the off-trade, creating recognition and brand loyalty when visiting pubs and bars. However, what this isn’t necessarily doing is transitioning into late-night sales. Much like the RTD news clippings of the past, the struggles experienced by those operating clubs and bars has been heavily documented – it’s tough out there. And while younger guests are still heading out to venues in decent numbers, they aren’t always staying as late. Has that noticeably affected the sales of RTDs in the on-trade?

“Consumer demand for RTD beverages remains strong, despite the overall beverage market currently underperforming expectations,” says Jacob Barrett, Hooch brand manager at Global Brands. “We are seeing a significant shift in on-trade venues towards earlier daytime drinking sessions, with a decline in late-night venue visitation, contributing massively to the market’s slowdown.”

Life in the fast lane

One of the appealing natures of an RTD, both from a guest and operator perspective, is the speed at which a thought-out, well-balanced drink can be served. A couple of the original RTDs undoubtedly mimicked popular cocktails, such as the Screwdriver. These days, there’s no mimicking required, as huge drinks brands from around the world continue to collaborate on classic spirit mixer options and offer them to pubs and bars to help speed things up in certain venues – rum and cola, whiskey and cola, vodka and cranberry, gin and tonic… the list really does go on. For those simple serves, while some operators may ask why they wouldn’t just pour a spirit in a glass and add a mixer, the answer could well be the time saved in high-footfall spots. 

“RTDs are especially valuable in summer or outdoor venues, where fast service is essential,” says Bridge. “Whether it’s cocktails or new products like the Aperol Spritz RTS, RTDs ensure a high-quality drink every time, even when staff aren’t skilled at mixing. With RTDs, there’s no need for staff to be experts in cocktail preparation, saving on both training time and costs.”

There’s no denying that draught options in this space have taken that speed of service and consistency of pour to a whole new level. Many wouldn’t have predicted that countryside pubs would eventually have Espresso Martinis on tap, but here we are and there we have it. 

“Draught is well-positioned to benefit from evolving consumer behaviours by offering a longer serve window, which is expected to drive increased visitation and unlock new consumption channels and opportunities,” says Barrett. “Taste and price are the most critical consideration factors for consumers when selecting their RTD beverages. Draught addresses consumer priorities by providing a competitive price point, while offering a longer serve that delivers better value for money. This combination of taste, value and extended serve enhances the overall consumer experience.”

More range than ever

With more brands, more flavours and more formats, the RTD space has never been more exciting or enticing for consumers. Where once they may have been tempted by a brightly-coloured back bar fridge filled with bottles, the wider range of cans and draught has elevated this category more so than ever before. Some may say that too much choice is a bad thing, but Barrett argues a diverse range of flavour options across a brand’s repertoire is important, as it allows consumers to explore different options and tailor their choices to their taste preferences, while also maintaining their familiarity with the core brand.

“Offering RTD beverages in on-trade venues provides several advantages, with RTDs having strong appeal across both gender and age demographics, making them an attractive option for a wide range of consumers,” he concludes. “With typically lower ABV, RTDs offer an easier drinking experience compared to other beverages within the beer, wine and spirits categories, also tapping into the growing trend of moderation drinking among a variety of consumer groups. 

“Additionally, the variety of flavours within the RTD category allows for strong cross-category appeal, ensuring that these products can attract consumers from multiple beverage segments, boosting overall sales and satisfaction and enabling venues to cater to a diverse consumer base.” 

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