As consumers turn more towards premium offerings for their alcoholic beverages, U.K.-based Double Dutch is making the leap to the U.S. with its line of premium mixers.
Founded in 2015 by Dutch twin sisters Joyce de Haas and Raissa de Haas (hence, the name), who at the time were students studying at University College London, Double Dutch produces a line of premium cocktail mixers and tonic waters available in 12 varieties ranging from classics like Double Lemon to complex flavor combos like Rhubarb & Pineneedle, Pomegranate & Basil and Cucumber Margarita with Chilli Soda, among others.
For its U.S. launch, however, the brand is starting with its most approachable SKUs: Indian Tonic Water, Ginger Ale, Ginger Beer and Soda Water, with Cucumber & Watermelon set to roll out later this year. The brand is rolling out in the Los Angeles area now with 4-packs of 200 mL bottles for $6.99 and is in on-premise accounts such as Cha Cha Cha, Manuela, E.P. & L.P. and Soho House. Miami, Florida sales are set to begin later this month and from there, Double Dutch will follow with New York, Illinois, Texas and South Carolina.
According to Joyce de Haas, in the U.K. Double Dutch is sold in about 7,000 bars and restaurants alongside retail stores and the brand is available in 45 countries across Europe and the Middle East with average sales reaching around 2 million bottles per month. Now, as the company looks to expand in the U.S., she believes the trend towards premiumization across the beverage space will help Double Dutch to quickly establish itself as a significant player in the mixer category.
“The whole premiumization of spirits has been so exciting to see,” she said. “And I think there’s such an immense offering in premium tequilas and premium vodkas and different flavor profiles in all kinds of spirits, but the choice of premium mixers is still really low compared to the spirit markets. So I think it’s a really exciting opportunity because people understand the whole premiumization [position] and they are now looking to extend that premiumization to their mixers and sodas.”
According to IRI, liquid cocktail mixer retail sales fell 10.4% to $373.5 million in the 52-weeks ending February 20, while tonic water and club soda was down 9.8% to $316.3 million. However, much of the decline came from mass market brands, while craft and premium products reported double digit growth. Q Drinks’ mixers were up 31.8% in the period and its tonic water and club sodas rose 3.9%. Fever Tree reported tonic sales growth of 12.8% and Owen’s Craft Mixers rose 85.5%.
Over the past two years, the U.S. mixer category has also seen startup entrants like AVEC and better-for-you products like Health-Ade’s kombucha-based mixers launch into natural and specialty retailers.
Meanwhile, Double Dutch intends to leverage its strength as a global brand and to establish itself as a more rarified player in the category by focusing first on “super premium” accounts before taking the products into the mainstream, Joyce de Haas said. The company aims to focus on its authentic founding story, clean label ingredients and numerous awards to drive trial and reach U.S. consumers.
While most of the early California accounts have been on-premise bars and restaurants, the brand will also target specialty liquor stores and wine shops, and will also sell direct-to-consumer online.
“If we look at our audience here in Europe, about 20% of the Double Dutch consumer is new to the category,” she said. “So we are attracting a different audience, and that is because on the modern side, we attract a … younger audience, but also we attract the soft drink consumer because of our flavor profiles and because we don’t use quinine in our flavored mixers.”
For marketing, Raissa de Haas said the company will partner with a number of spirits producers to promote the brand at various events and promotions, as well as creating drink recipes to promote on social media. With on-premise a key focus, she said Double Dutch also aims to work closely with bartenders to use the brand in their menus and will work with brand ambassadors and influencers to raise awareness.
The company currently has 20 full time employees in Europe. Joyce de Haas said the company will likely hire more people to support the U.S. expansion but did not say when or where it will look to grow its team.
Double Dutch also arrives as many consumers are embracing different types of drinking occasions, including ready-to-drink cocktails and non-alcoholic alternatives. Joyce de Haas said that although Double Dutch is designed to be consumed with spirits, about 25% of its European consumers report drinking the products straight without alcohol. As the brand works to establish partnerships with American bartenders, she said low ABV creations will also be a focus for marketing.
As for RTD libations, she noted that the canned cocktail trend is still early and although it could be a space for Double Dutch to play in the future, the company aims to establish its bonafides as a mixer with American drinkers first before branching elsewhere.
“I think RTD is still very much a different category than where Double Dutch sits at the moment because we are all about maintaining the best quality,” she said. “[RTD cocktails] serve as an on-the-go nice drink, and I think obviously there’s overlap, so it’s super interesting to see whether we could move in there as well.”