RTD drinkers like to explore and have twice as many brands already in their repertoire— meaning brands have their work cut out for them, shared 3 Tier Beverage COO Turiya Luzader during the 2024 Summer BevNET Live conference in New York City.
“Delivering consistency to your brand promise is one of the ways you create that loyalty,” she said.
Luzader discussed trends and opportunities within spirits-based RTDs alongside Tip Top Proper Cocktails co-founder Neal Cohen and Mom Water CEO Kara Woolsey.
Growing distribution is also critical to deepening consumer loyalty after building an initial foothold, Luzader added. Both of her co-panelists have done that: since 2019 Tip Top Cocktails has expanded distribution to 25 states and sales are up +1,000% in the last 52 weeks compared to the year prior according to NIQ. Non-carbonated Mom Water increased its retail store presence by 54% in 2023, jumping to over 20,000 stores nationwide.
Along the way there have been some lessons. While RTDs are often praised for their portability, Cohen’s team found that the convenience of Tip Top’s craft cocktails lay in their ease of use at home, which meant sales of single cans from the front of the store were also translating to the roughly $20 four-pack. Tip Tip has used that data to now focus on expanding into grocery chains, while Mom Water is headed on-premise to drive activations and trial, after achieving over 50% of distribution at large chains.
Rewatch the full panel here to hear more from the group including how the brands have gone narrow to appeal to a wide audience, key factors in selecting distribution partners, and what they expect for the future of the category.