High-ABV RTDs Are On The Rise, But They’re More Than Buzz For Your Buck

There were many kinds of party drinks before 2010, but we’d bet none of them came in colorful plastic orb-shaped containers. BuzzBallz, the Sazerac-owned ready-to-drink (RTD) party prop, doesn’t just stand out for its spherical shape, but for what it represents about how people are drinking these days: with entertaining, high-ABV, convenient formats.

For years, we’ve seen the progression of drinkers shifting from picking up a 6-pack of beer for a gathering to gravitating towards seltzers, then to flavored malt-beverages, and now they’re on to spirits-based RTDs. The segment is up +23.5% in sales for the four weeks ending July 4, according to NIQ off-premise data.

While the bulk of spirits-based RTD sales remains in the more mid-range 4-5% ABV tiers, “what we have seen over recent years is a visible shift in dollar share toward higher ABV levels, particularly those in the 10-15% range,” said Dave Williams of Bump Williams Consulting, pulling from NIQ data across total U.S. off-premise outlets year-to-date (YTD) ending July 4.

In fact, elevated ABV tiers (+10%) have seen their dollar share of total spirits-based RTDs grow from about 21% in 2022 up to about 28% through YTD 2026. The fastest moving tier among ABV ranges is the 10-15%, and it is quickly gaining share.

The gravitation towards stronger drinks could be caused by a number of factors: the most obvious is economic. An overwhelming number of Americans (95%) say expenses are too high, with groceries, gas and housing topping the list, according to CNN. So, why not get more value from your drinks?

Randy Ornstein, senior director of beverages at GoPuff, the parent company of BevMo! and Liquor Barn, said the bulk of Americans are looking for a “cheap buzz,” which means more bang for their buck – 8% and higher ABV is the only subsegment growing at his retail stores, he said at Beverage Forum earlier this year.

Gen Z Driving Social, Convenient Drinking

While affordability concerns hit across generations, Gen Z-ers are more likely to attempt to stretch their dollars for a more premium and social experience — and therefore might be driving a segment of the high-proof RTDs.

More Gen Z drinkers of legal age reported drinking cocktails in the past six months than any other generation (84%), according to drinks research firm the IWSR, and they were the most likely to report drinking beverage alcohol with five or more people on their last occasion (18%).

But what’s unique about this generation of drinkers is they’re guided through taste buds that came to alcohol via fruity flavored RTDs – unlike previous generations who may have gotten their first taste from grandpa’s stolen bottle of whiskey or cheap malt liquor.

“Now they want something palatable, but want to feel a buzz from it as well,” said industry expert Hamish Campbell at drinks specialists Denomination.

The majority of high-ABV growth is fueled by Cutwater, a brand that continues to lead spirit-based RTD brands by dollar growth, up 113.2% in the last four weeks ending July 4. The brand offers canned versions of flavorful cocktails for $10 per 4-pack at a range of ABVs, but up to 20% ABV. The high proof point is what cuts through to Gen Z, said Campbell, allowing drinkers to get a buzz for the night with only two cans while they switch off between alcohol and non-alc.

BuzzBallz ranks No.2 when it comes to high ABV growth – the brand offers an array of convenient single-serve options in bright colors, including a near-bowling-ball sized 1.75L cocktail.

“It’s not a high quality product, but it’s flavorful, it’s colorful, it creates moments, and that’s what Gen Z is about,” Campbell said. “They’re more about occasion and moments than product.”

More About Moments

These new formats and styles of high-proof RTDs show that it’s not enough to be just a cheap buzz. Towards the bottom of the high-ABV growth leaders are a trio of more unique forays into the RTD landscape with Shottys (gelatin shots) and Boba Pops (infused boba) that also lend themselves to memorable moments.

Flavor, convenience, and sharing are what Asahi-owned Twisted Shots are about as well — a line of packaged shots that recently rebranded and added new flavors to their 20% ABV 225ml formats ranging from single-flavor 4-packs to mixed 15-packs. The relaunch is being supported by wholesalers across its 44-state footprint, including Southern Glazer’s Wine & Spirits and Breakthru Beverage.

As high-end jello shots and party shooters make comebacks on-premise, Asahi is one of the major companies aiming to be the more accessible, at-home option.

“Shots used to be seen as a quick shortcut,” said Josh Lindsay, Asahi’s RTD national marketing manager. “Now the energy of parties has changed, a group of friends get together to watch a reality show, or have a BBQ at home. We’re trying to find those occasions.”

Craft RTD Cocktails See Boost

But brands don’t need to taste like candy or be a party novelty to make a mark as high-ABV RTDs. After BuzzBallz, an array of more traditional cocktail-styled lineups in convenient can formats contribute to growth in the high-ABV segment. Those include brands such as Casamigos, On the Rocks, Salt Point, 10 Barrel and Rivergreen.

“While I most certainly do think that there are some consumers out there keying in on the ABV bang that Cutwater can bring, I also think that there is a growing subset of consumers who appreciate a high-end cocktail experience, but prefer the convenience of the RTD versions versus maintaining and purchasing all of the more ‘traditional’ ingredients,” said Williams.

More premium cocktail brands such as TipTop, Straightaway, and Golden Rule have made bar-strength canned cocktails for years.

But some of these premium brands are now taking more inspiration from the aisle versus the craft cocktail bar. Aiming to recruit Gen Z drinkers as they age, Mission Craft Cocktails, a California-based bottled craft cocktail brand, has expanded its flavor lineup lately with colorful SKUs such as Blue Hawaiian, a vodka, blue curaçao, pineapple, and coconut cocktail at 25% ABV. The brand has also expanded into smaller, plastic formats.

“I think we’re providing an alternative or a step up for that older BuzzBall consumer, but still tackling the convenience and flavor profiles to some degree,” said co-founder, Amit Singh.