One-quarter of consumers who have visited the on-premise in the past three months have ordered a ready-to-drink cocktail (RTD) during that time, according to CGA, the on-premise arm of market research firm NIQ.
CGA defines RTDs as “a drink that has been pre-mixed and is ready for consumption when it is delivered to the venue, without the venue having to add any ingredients.” Included in that definition are pre-mixed cocktails (draft and canned), pre-mixed spirits and mixers and hard seltzers and hard sodas with various alcohol bases.
The market research firm surveyed approximately 1,600 legal-drinking-age (LDA) consumers in Texas, New York, Florida and California. The survey was conducted between December 4 and 6, with all respondents having visited the on-premise in the past three months.
The percentage of consumers who have had RTDs in the on-premise recently is even higher with younger consumers. More than two-in-five consumers (41%) aged 21-34 have ordered an RTD in the last three months, while 34% of 35- to 54-year-olds have. The total percentage is skewed by the oldest demographic, with only 8% of consumers 55 and older ordering an RTD in the period.
The numbers are somewhat of a natural progression, as more bars and restaurants add RTDs to their menus. Nearly one-third of consumers surveyed by CGA (32%) said they have seen a significant or somewhat significant increase in availability of RTDs over the past 12 months. The majority (65%) said they have seen no change, while 2% have seen a significant or somewhat significant decrease.
One-third of consumers said they would be highly likely or likely to consider an RTD when at on-premise venues, while 23% said they would be “somewhat likely.” Still, 45% said they would be unlikely or highly unlikely.
CGA also dove into the main factors that drive consumers to try (or not try) RTDs at on-premise venues.
The No. 1 reason for consumers to choose an RTD is price, according to 35% of respondents. However, an RTD being “too expensive” is also the No. 1 reason consumers said they would be less likely to drink an RTD (39%).
Variety of flavors was the second highest driver for RTD purchases (23%), increasing to 30% for 21- to 34-year-olds and 29% for 35- to 54-year-olds. Convenience was No. 3 (21%), increasing to 32% for 21- to 34-year-olds and 26% for 35- to 54-year-olds.
Other positive drivers include “from a brand I trust” (18%), “quick serve” (17%), “from a brand I recognize” (16%), “something different compared to my usual drink choice” (13%), offers and promotions (12%) and influence from friends and family (12%).
High sugar content was the second highest reason to deter consumers from ordering RTDs (26%), followed by preferring another drink option (25%). The latter decreases to 20% when including only 21- to 34-year-olds, and increases to 32% when including only consumers aged 55 and older.
Other deterring factors include “taste too sweet” (25%), “dislike pre-mixed drinks” (21%), “lack of variety in flavors” (15%), limited availability (14%) and “alcohol levels are too low” (13%).
CGA’s survey also indicates that when consumers do order an RTD, they are more satisfied with the beverage than other beverages consumed in the on-premise. RTDs topped the charts for bev-alc by how satisfied consumers were with the value (89%) and how satisfied consumers were with “how exciting the drink was” (91%). RTDs also beat out the top non-alc drinks in both categories, energy drinks, which had 89% of consumers satisfied with the value and 90% satisfied with how exciting the drink was.
Other high-satisfaction bev-alc by value include shots (87%), sparkling wine or Champagne (86%), whiskey (86%), liqueurs and specialty drinks (85%), beer (85%), tequila (85%), vodka (84%) and table wine (84%).
Other high-satisfaction bev-alc by excitement include whiskey (90%), tequila (91%), shots (89%) and sparkling wine or Champagne (88%). Beer ranked last on the excitement chart, with 77% of consumers expressing satisfaction, below cocktails (78%), table wine (79%), vodka (81%), rum (82%) and liqueurs and speciality drinks (83%).
With rising costs impacting consumer decision-making, CGA also asked consumers how they would prefer businesses respond to rising costs.
The majority (37%) said they would prefer venues keep food and drink quality the same, but increase prices. Nearly the same (34%) said they would prefer venues to keep the food and drink quality, but reduced portion sizes. Nearly one-fifth (18%) said they would prefer food and drink quality and costs stay the same, but businesses run shifts with fewer staff, “resulting in poor service or longer waiting times,” while 12% said venues should keep the costs the same, but decrease the quality of food and drinks.
Despite the risk of rising costs, more than half of consumers (55%) plan to spend the same amount of money at on-premise establishments in 2025. Nearly one-quarter (23%) plan to increase their spending, with that percentage increasing to 20% for 21- to 24-year-olds and 29% for 35- to 54-year-olds, and decreasing to 13% for 55+ consumers. Seventeen percent plan to decrease their on-premise spending next year, while 7% are unsure.
More than three-quarters of consumers have visited an on-premise establishment to eat in the past month (76%), on par with November trends, while 47% have gone out for a drink (-1 percentage point from November).
A similar percentage of consumers plan to go out to eat in the next month (77%, up from 76% in November), while 45% plan to go out for a drink (flat from November projections).
The majority of surveyed consumers visited the on-premise once or twice a week (38%) in November, followed closely behind by once or twice in the full month (37%). About one-fifth (19%) visited 3-5 times a week, while 6% visited everyday or almost everyday.