Absolut Vodka is launching a slew of ready-to-serve (RTS) and ready-to-drink (RTD) products as it positions towards convenience-oriented social drinking.
Pernod Ricard is now playing in the pre-mixed category with two new Absolut Vodka varieties – Mojito and Raspberry Lemonade, both launching today – and a line of Malibu Rum cocktails after launching RTDs in partnership with Ocean Spray earlier this month.
The new Absolut flavors will retail for $18.99 per 750ml multiserve bottle. Also announced yesterday: a three-SKU Malibu Rum RTS line will be available for $14.99 in one-liter TetraPak cartons when it launches later this spring.
Pernod-Ricard’s new products, including the Ocean Spray RTDs, position the company deeper in off-premise sales by offering “bar-quality” offerings that “give time back with family and friends” at-home, said Pernod Ricard VP of marketing Matt Foley.
Using recognizable names in RTD and RTS offerings is an easy way to leverage brand identity and consumer trends. The Coca-Cola Co. partnered with Pernod-Ricard on a Absolut Vodka & Sprite RTD expected to launch this year after the success of its Jack & Coke RTD partnership with Brown–Forman. The soda giant has also used its Fresca and Simply brands to dip its toes into beverage alcohol.
The RTD category is expected to grow volume by +12% between 2022 and 2027, hitting $40 billion by 2027, according to IWSR data. That success seems to be translating into the multiserve format.
“Ready-to-serve product launches are typically cocktails with higher ABVs,” said Susie Goldspink, head of RTD insights at IWSR. “Brands are often available in multiple sizes, giving consumers a choice between a single serve or a bottle to take to a party, cutting into wine gift occasions.”
This appears to be Pernod-Ricard’s strategy with the Ocean Spray Vodka Cran cocktails weighing in at 4.5% ABV; whereas, the Malibu line is 12.5% ABV and Absolut’s RTS bottles hit 15% ABV.
Analysts have flagged the need for Pernod Ricard’s newest acquisitions and innovations to pick up the slack as its flagship brand Jameson faces a natural growth slowdown. The French spirits company has been on an acquisitions streak in recent years, but may now be looking for growth through leveraging its major brands into various cocktail formats.
Pernod-Ricard invested $22 million in November 2022 on its first-ever RTD canning line and it is not the only spirits house attempting to cash in on convenience.
The RTS category is getting crowded with competition from Bacardi-owned Grey Goose, Jennifer Lopez’s Delola Spritz brand and pre-mixed margarita Batch & Bottle, William Grant & Sons’ first foray into the category.