Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- FMBs continue to lead the market, but a slowdown can be seen
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- Figure 1: US volume sales of flavored malt beverages, 2011-21
- Prepared spirits-based cocktails have struggled, but are poised for a boost
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- Figure 2: US volume sales of spirits-based prepared cocktails, 2011-21
- The category is limited by lack of customization, high sugar content
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- Figure 3: Consumption barriers, September 2016
- The opportunities
- Ease of use leads reason for consumption of RTD alcoholic beverages
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- Figure 4: Reasons for consumption of RTD alcoholic beverages, September 2016
- Consumers are adopting a wider range of format sizes
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- Figure 5: RTD alcoholic beverage format – Size, September 2015 and 2016
- Leading drink types on-premise can inform CPG innovation
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- Figure 6: Leading cocktail mentions on menu, Q3 2016
- What it means
The Market – What You Need to Know
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- FMBs continue to lead the market, but growth slows
- Prepared spirits-based cocktails are poised for a boost
- Wine coolers continue downward trajectory
- Beer leads alcohol consumption
Market Breakdown
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- FMBs continue to lead market, but growth slows
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- Figure 7: US volume sales of flavored malt beverages, 2011-21
- Henry’s Hard Soda allows for a double splurge
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- Figure 8: “Live Hard-ish: Hard Orange | Henry's Hard Soda,” February 2016
- Prepared spirits-based cocktails are poised for a boost
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- Figure 9: US volume sales of spirits-based prepared cocktails, 2011-21
- Smirnoff Sourced offers perception of quality, customizability
- Wine coolers continue downward trajectory
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- Figure 10: US volume sales of wine coolers, 2011-21
- Barefoot launches wine spritzers
Market Perspective
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- Beer leads alcohol consumption
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- Figure 11: Alcohol consumption – Any drink*, October 2015
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- Figure 12: Correspondence Analysis – Perceptions of alcoholic drink types, October 2015
- Figure 13: Perceptions of types of alcoholic drinks, October 2015
Key Players – What You Need to Know
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- Bottles dominate launches
- Premium claims are up in most segments
- Standard FMB flavors are on the decline
- Leading drink types on-premise can inform CPG innovation
What’s Working?
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- Bottles dominate launches
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- Figure 14: FMB launches, by pack type, 2012-16*
- Figure 15: Prepared spirits-based cocktail launches, by pack type, 2012-16*
- Premium claims are up in most segments
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- Figure 16: FMB launches, by leading claims, 2012-16*
- Figure 17: Prepared spirits-based cocktail launches, by leading claims, 2012-16*
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- Figure 18: Wine cooler launches, by leading claims, 2012-16*
What’s Struggling?
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- Standard FMB flavors are on the decline
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- Figure 19: FMB launches, by leading flavors, 2012-16*
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- Figure 20: Prepared spirits-based cocktail launches, by leading flavors, 2012-16*
- Figure 21: Wine cooler launches, by leading flavors, 2012-16*
What’s Next?
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- On-premise inspired innovation
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- Figure 22: Leading cocktail mentions on menu, Q3 2016
- Craft focus can stretch into RTD
- RTDs lighten up
The Consumer – What You Need to Know
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- Slightly over a third of respondents consume drinks in each of the measured segments
- Consumers are adopting a wider range of format sizes
- Supermarkets lead as RTD alcoholic beverage purchase location
- Ease of use leads reason for consumption of RTD alcoholic beverages
- The category is limited by a lack of customization, sugar content
- Standard liquor-based drinks find appeal among younger drinkers
RTD Alcoholic Beverage Consumption
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- Slightly over a third of respondents consume drinks in each of the measured segments
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- Figure 23: RTD alcoholic beverage consumption – Any consumption, September 2016
- Men make up a larger share of RTD alcoholic beverage consumers
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- Figure 24: Share of RTD alcoholic beverage consumption – Any consumption, by gender, September 2016
- Millennials make up the vast majority of RTD alcoholic beverage drinkers
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- Figure 25: Share of RTD alcoholic beverage consumption – Any consumption, by generation, September 2016
- Millennials earning $75K+ are most likely to be high-volume consumers
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- Figure 26: Consumption – CHAID – Tree output, September 2016
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- Figure 27: Consumption – CHAID – Table output, September 2016
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- Figure 28: RTD alcoholic beverage consumption – Any consumption, by age and income, September 2016
- Mean consumption of flavored alcoholic beverages is on the decline
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- Figure 29: Mean # flavored alcoholic beverages consumed, 2012-16
RTD Alcoholic Beverage Format
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- Package
- Bottles continue to lead RTD alcoholic beverage format, cans gain
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- Figure 30: RTD alcoholic beverage format – Package, September 2015 and 2016
- Men are stronger targets for cans than are women
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- Figure 31: RTD alcoholic beverage format – Package, by gender, September 2016
- A quarter of Millennial drinkers use pouch formats
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- Figure 32: RTD alcoholic beverage format – Package, by generation, September 2016
- Size
- Consumers are adopting a wider range of format sizes
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- Figure 33: RTD alcoholic beverage format – Size, September 2015 and 2016
- Men are the strongest targets for individually portioned shots
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- Figure 34: RTD alcoholic beverage format – Gender, September 2015 and 2016
- Small sizes and variety appeal to Millennials
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- Figure 35: RTD alcoholic beverage format – Generation, September 2015 and 2016
- Storage
- Frozen usage stalls
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- Figure 36: RTD alcoholic beverage format – Storage, September 2015 and 2016
- Frozen formats have the potential to resonate with younger consumers
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- Figure 37: RTD alcoholic beverage format – Storage, by generation, September 2015 and 2016
- Light/low-calorie
- Use of light/low-calorie versions increase
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- Figure 38: RTD alcoholic beverage format – Light/low-calorie, September 2015 and 2016
- Nearly one quarter of men drink light/low-calorie versions
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- Figure 39: RTD alcoholic beverage format – Light/low-calorie, by gender, September 2015 and 2016
- Light versions may also appeal to Millennials
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- Figure 40: RTD alcoholic beverage format – Light/low-calorie, by generation, September 2015 and 2016
- Flavors
- Tropical drink options lead consumption
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- Figure 41: Alcoholic cooler flavors consumed, 2012-16
Purchase Location
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- Supermarkets lead as RTD alcoholic beverage purchase location
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- Figure 42: RTD alcoholic purchase location, September 2016
- Men are a stronger audience for online, on-premise sales
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- Figure 43: RTD alcoholic purchase location, by gender, September 2016
- Millennials are open to a range of purchase channels
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- Figure 44: RTD alcoholic purchase location, by gender, September 2016
Perception of RTD Alcoholic Beverages
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- Strongest association with pre-mixed spirts-based cocktails is positive
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- Figure 45: Prepared spirits-based cocktail terms, October 2016
- FMBs are strongly associated with convenience
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- Figure 46: Flavored malt beverages terms, October 2016
- Wine cooler perception mixed, associated with low alcohol/young drinkers
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- Figure 47: Wine cooler terms, October 2016
Reasons for Consumption
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- Ease of use leads reason for consumption of RTD alcoholic beverages
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- Figure 48: Reasons for consumption of RTD alcoholic beverages, September 2016
- Ease of use is an especially strong driver for women
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- Figure 49: Reasons for consumption of RTD alcoholic beverages, by gender, September 2016
- Promotion of convenience may help drinks appeal to older consumers
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- Figure 50: Reasons for consumption of RTD alcoholic beverages, by generation, September 2016
Barriers to Consumption
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- Category limited by lack of customization, sugar content
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- Figure 51: Consumption barriers, September 2016
- Health is the strongest barrier for women, men are aware of perception
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- Figure 52: Consumption barriers, by gender, September 2016
- Barriers vary across generations
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- Figure 53: Consumption barriers, by generation, September 2016
Ideal RTD Alcoholic Beverages
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- Standard liquor-based drinks find appeal among younger drinkers
- Pushing flavor boundaries can attract savvy explorers
Beverage Classification
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- Consumers don’t have a strong ability to discern between RTD alcoholic beverage types
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- Figure 54: Correspondence analysis – Beverage classification, September 2016
- Figure 55: Beverage classification, September 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- CHAID methodology
- Correspondence analysis methodology
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- Figure 56: US volume sales of flavored malt beverages, 2011-21
- Figure 57: US volume sales of spirits-based prepared cocktails, 2011-21
- Figure 58: US volume sales of wine coolers, 2011-21
- Figure 59: US volume consumption of beer, by category, 2014-15
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- Figure 60: US volume consumption of distilled spirits by category, 2014-15
- Figure 61: US volume consumption of wine by category, 2014-15
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Appendix – Key Players
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- Figure 62: FMB launches, by leading claims, 2012-16*
- Figure 63: Prepared spirits-based cocktail launches, by leading claims, 2012-16*
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- Figure 64: Wine cooler launches, by leading claims, 2012-16*
- Figure 65: FMB launches, by leading flavors, 2012-16*
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- Figure 66: Prepared spirits-based cocktail launches, by leading flavors, 2012-16*
- Figure 67: Wine cooler launches, by leading flavors, 2012-16*
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- Figure 68: FMB launches, by pack type, 2012-16*
- Figure 69: Prepared spirits-based cocktail launches, by pack type, 2012-16*
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- Figure 70: Wine cooler launches, by pack type, 2012-16*
- Figure 71: FMB launches, by packaging material, 2012-16*
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- Figure 72: Prepared spirits-based cocktail launches, by packaging material, 2012-16*
- Figure 73: Wine cooler launches, by packaging material, 2012-16*
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- Figure 74: FMB launches, by launch type, 2012-16*
- Figure 75: Prepared spirits-based cocktail launches, by launch type, 2012-16*
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- Figure 76: Wine cooler launches, by launch type, 2012-16*
- Figure 77: Leading cocktail mentions on menu, Q3 2016
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Appendix – Consumer
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- Figure 78: Mean # flavored alcoholic beverages consumed, 2012-16
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- Figure 79: Alcoholic cooler flavors consumed, 2012-16
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