Ready-to-drink beverage-alcohol (RTDs) has crossed into every alcoholic-beverage category, with spirits-based and wine-based RTDs, hard seltzers, flavored malt beverages (FMBs) and more. And RTD consumers aren’t sticking to just one category, according to Bump Williams Consulting (BWC).
BWC and research firm Perksy surveyed 350 legal-drinking-age consumers who consumed an RTD (including hard seltzer and flavored malt beverages [FMBs]) in the last six months. The majority of respondents said they purchased across three to five bev-alc categories over the period, “both within and outside the RTD universe.”
More than 10% of respondents said they made purchases across six different bev-alc categories in the last six months, while 10% purchased across 10 or more categories. Only 1% (10 of the consumers) said they were loyal to one category: seven to FMBs, two to hard seltzer and one to spirits-based RTDs.
Hard seltzers were the most popular bev-alc purchase among RTD consumers, with nearly three quarters (74%) purchasing a hard seltzer in the last six months. FMBs were the second most popular RTD (55%), followed by spirits-based (49%) and wine-based (33%). BWC noted that “geographical location and access to legal outlets could factor” into spirits- and wine-based RTDs having a lower purchase percentage.
Out of the respondents’ other bev-alc purchases, wine (67%) was the second most popular purchase after hard seltzer, followed by domestic beer (58%). Slightly more than half of respondents purchased import beer (54%) and spirits (53%), while half purchased craft beer.
“Unsurprisingly, and this seems to be becoming more of the norm rather than the exception lately, is that these RTD consumers are not exclusively shopping/consuming within [hard] seltzer, FMBs and/or RTD wine and spirits,” BWC wrote in its report. “With multiple categories constantly competing to be the final choice for the consumption occasion, the varying levels of category-crossover shed light on those areas that might be most vulnerable should rising RTD occasions replace a consumer’s previously preferred alternatives.”
RTD volume increased +65.7% YTD in off-premise channels through August 20, according to NielsenIQ data cited in BWC’s monthly report. Spirits-based RTDs also increased dollar sales +58.1% YTD in the period.
RTDs also seem to be “less divisive” among genders, with about equal amounts of men and women purchasing different RTDs, e.g. 75% of men purchased hard seltzer, while 72% of women purchased hard seltzer. Comparatively, nearly 64% of male respondents purchased craft beer in the past six months, while 38% of female respondents did.
The appeal of RTDs is partially the “effortless” nature and convenience, as well as the “vital statistics” commonly “clearly listed” on RTD beverages, such as calories, ABV and sugar content, “so the consumer knows exactly what they are drinking,” BWC said.
“Consumers are also (mostly) satisfied with the current variety on the shelf as there are no shortage of options to choose from, [and are] always able to find something that fits their current mood,” BWC added.
That doesn’t seem to be changing anytime soon, as retailers continue to make shelf space for RTDs. As Brewbound previously reported, BWC also surveyed retailers recently and asked “what they see the shelf sets looking like moving forward.” Across various off-premise channels – grocery, convenience, supercenter, liquor and drug stores – the majority of retailers said they intend to expand shelf space for wine- and spirits-based RTDs. Retailers also categorized RTDs as a “priority” or “top” focus for future shelf sets.
Still, it may not be the time to panic over a “mass exodus” to RTDs from other offerings, as the majority of consumers (67%) said their RTD consumption habits have remained the same over the past 12 months, BWC reported. Of those that did increase RTD consumption, many noted “not all RTD occasions completely overlap with non-RTD bev-alc occasions.” Much of the RTD growth this year has been “truly incremental,” led by “new occasions” and “new consumers” rather than taking from other bev-alc.
“It’s precisely because of that phenomenon why it’s essential to learn what consumers look for in their consumption occasions, whether it happens to be RTD-related or not,” BWC said.