Conor McQuaid, CEO of Pernod Ricard North America, asserts that spirit-based ready-to-drink cocktails are not merely a transient trend but a lasting fixture in the beverage market. Amidst the disruptive rise of products like hard seltzer, McQuaid predicts that spirit-based cocktails will continue to gain traction among consumers, fueled by increased investment from the industry.
Pernod Ricard, renowned for its diverse portfolio encompassing wines, champagnes, and spirits such as Malibu, Absolut Vodka, Glenlivet, and Jameson Irish Whiskey, stands as a testament to the enduring appeal of established brands. McQuaid underscores this point, citing the longstanding presence of brands like Absolut and Jameson, which have weathered market fluctuations since their inception in 1780.
Data from the Distilled Spirits Council of the United States (DISCUS) corroborates this trend, revealing a surge in popularity for ready-to-drink products, with sales climbing by 26.8% to reach $2.8 billion in revenue last year. Christine LoCascio, DISCUS chief for policy, strategy, and membership, identifies ready-to-drink cocktails as the fastest-growing spirits category by revenue.
While hard seltzers dominated the market in previous years, recent shifts indicate a rising preference for spirits-based alternatives. Marten Lodewijks, head of consulting for Americas at IWSR, highlights the accelerated growth of spirits-based products, attributing their success to a perceived premium experience compared to malt-based counterparts.
However, regulatory barriers persist in certain states, hindering the widespread availability of spirit-based ready-to-drink cocktails in grocery and convenience stores. DISCUS reports that 19 states restrict their sale in grocery stores, while 21 states prohibit their sale in convenience stores. Texas, for instance, imposes limitations on the distribution of spirit-based products, adversely affecting the distilled spirits industry’s economic contributions.
Despite these challenges, McQuaid remains optimistic about the future of the ready-to-drink category, exploring further investment opportunities. In collaboration with Ocean Spray, Pernod Ricard’s Absolut brand recently introduced a range of ready-to-drink cocktails in the U.S., signaling a continued commitment to innovation and market expansion.
