In this article, we are going to discuss the 20 most popular RTDs in America. You can skip our detailed analysis of the RTD market in America, the demand for lower tax rates on canned cocktails, and the new...
In this article, we are going to discuss the 20 most popular RTDs in America. You can skip our detailed analysis of the RTD market in America, the demand for lower tax rates on canned cocktails, and the new RTD cocktail in the market, and go directly to 5 Most Popular RTDs in America.
As the name suggests, RTD or ready-to-drink alcoholic beverages are premixed drinks that are ready to be consumed immediately and typically have a lower alcoholic content compared to traditional liquors and spirits, and even some beers. Aside from being super convenient, one of the major factors contributing to the rise of RTDs is the variety of flavors and options they offer. Various brands have stepped up over the years, responding to consumer demand for a wider range of flavors and ingredients, and have introduced a variety of options, including pre-mixed cocktails, hard seltzers, and spiked sodas. RTDs are amongst the most innovative and creative drinks in the market, forever changing, adapting, and growing the potential for a category.
RTD Market in America:
The United States is by far the largest market for RTDs in the world. According to IWSR, the country sold the equivalent of 387 million nine-liter cases in 2021, more than double the volumes in second-placed Japan. Although the American RTD market was flat last year, ending a period of rapid volume growth, it rose in value by 6% due to a combination of inflation and premiumization, reaching $18.2 billion. The market is expected to be valued at $21.1 billion by 2027, growing at a CAGR of 1% during the forecast period.
While malt-based RTDs still retain a 91% share by volume in the American RTD market, spirit-based RTDs grew by 51% in 2021, approximately double the growth of the wine-and malt-based categories. As mentioned in our article – 25 Most Popular Spirits in the World – the spirits-based RTDs are expected to grow at a CAGR of 33% in volume in the U.S. by 2025.
As consumers continue to look for ‘healthier’ alcohol options, spirit RTDs are responding with spirit-based seltzers with natural flavors and fewer calories. Spirit RTDs like Owl’s Brew’s Tea-based Seltzers claim to be alcoholic drinks that are good for health, benefiting from the ‘health halo’ created by ingredients like vitamins, anti-oxidants, and probiotics
Lower Tax Rates for Canned Cocktails:
The spirits industry has an effort underway to lobby states to lower taxes on canned cocktails to more closely mimic those placed on beer and hard seltzer. Since distilled spirits face the stiffest tax rates due to their high alcohol content, canned cocktails are also taxed heavily at every level. However, distillers argue that Ready-to-Drink cocktails have similar alcohol content as beer and hard seltzer and are treated unfairly just because their drinks contain spirits. As we stated in our article – 20 States with the Highest Alcohol and Beer Tax – the U.S. consumption of canned cocktails grew 52.7% in 2020 compared to the previous year, accounting for 6.9% of the total volume in the alcoholic ready-to-drink category. The higher sales have encouraged liquor companies to take the offensive in a fight for tax parity.
As a result, several states have already taken steps to level the field in favor of the canned cocktails, and thus support the country’s burgeoning craft distilling industry. An example of this is Michigan, where in 2021, Governor Gretchen Whitmer signed SB 144 – a bill to increase market access to RTD cocktails for adult consumers and reduce the tax on these spirits-based products. Under the new law, the tax rate on RTD cocktails up to 13.5% ABV has decreased from $0.48 to $0.30/liter.
New RTD Cocktail in the Market:
A recent new spirit-based RTD offering that popped up in the market is the good ol’ Jack & Coke. Although the classic drink has been a quintessential serve at every bar for a long time, the much-loved cocktail is now also available in the form of a pre-mixed, canned RTD – courtesy of a joint venture between the Brown-Forman Corporation (NYSE:BF-B) and The Coca-Cola Company (NYSE:KO).
Jack Daniel’s and Coca-Cola RTD made its U.S. debut in March this year in 12-oz. cans (7% ABV), and Jack Daniel’s and Coca-Cola Zero Sugar also became available in May. Brown-Forman Corporation (NYSE:BF-B) and The Coca-Cola Company (NYSE:KO) took a test-and learn-approach for the initial launch, applying lessons from a single-country rollout in Mexico to a global scaling strategy, bringing the product to 13 countries in 12 months.
Both the Brown-Forman Corporation (NYSE:BF-B) and The Coca-Cola Company (NYSE:KO) rank among the Largest Beverage Companies in the World in 2023.
With that said, here are the Most Popular RTDs in the U.S. in 2023.
A close-up on several cans of freshly brewed beer in a commercial brewery.
Methodology:
To collect data for this article, we have referred to sources such as Beverage Industry, BevAlc Insights, VinePair, Reddit etc., looking for the Most Popular RTD Brands in the U.S. We picked brands that appeared at least twice in these sources, assigned them a score based on their number of appearances, and ranked them accordingly.
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20. Twisted Tea Hard Iced Tea
Insider Monkey Score: 2
Twisted Tea Original is a refreshingly smooth hard iced tea made with real brewed black tea and a twist of natural lemon flavor. Non-carbonated, naturally sweetened, and 5% ABV – it’s your favorite iced tea with a classic twist!
The Twisted Tea brand family commands 93% of the hard tea market in America, exhibiting a growth rate of 28% in chain retail sales between 2020 and 2021.
19. Monaco Cocktails
Insider Monkey Score: 2
Available in convenience stores nationwide, Monaco Cocktails is a leading fan favorite in the canned cocktail space in the U.S. Monaco is the third brand by volume within the crowded RTD category, growing 34% last year with 2.5 million cases sold and recognized as a ‘top’ spirit-based RTD as well as the #1 single serve.
18. Crown Royal RTD Cocktails
Insider Monkey Score: 3
Featuring the signature smoothness of traditional Crown Royal Whisky, these 14 proof cocktails offer an effortlessly delicious way to relax or celebrate. The Diageo-owned brand entered the RTD space in 2021, stating that the launch of the new range bridges the gap between ‘loyal whisky fans and cocktail enthusiasts’.
17. BuzzBallz Cocktails
Insider Monkey Score: 3
BuzzBallz are mixed drinks made from 100% juices, and vodka, rum, or tequila. Compared with other RTD beverages on the market, BuzzBallz’s products are notably different due to their spherical shape.
Despite the overtly adult advertising, watchdog groups like Ohio’s Drug Free Action Alliance and Alcohol Justice have accused the brand of deliberately marketing to underage drinkers, stating that the cans look like toys, and the color palette is made to target kids.
16. Death & Co. Canned Cocktails
Insider Monkey Score: 3
A recent entry in the ready-to-drink category, the Death & Co canned cocktails capture the vibrancy of a freshly made cocktail. Founded as a single cocktail bar in New York City, Death & Co. became famous for its approach to developing inventive cocktails, becoming the birthplace for now-popular drinks such as the “Oaxacan Old Fashioned” and the “Naked & Famous.”
15. Ranch Rider Spirits
Insider Monkey Score: 3
Makers of the original tequila-based Ranch Water, the Austin-based Ranch Rider Spirits has emerged as a leading brand in the spirit-based RTD category. They are the #2 canned cocktail brand in Texas and a top 18 brand nationally.
Ranch Rider had a successful $12.5 million fundraising round last year, which it intends to use to finance growth into new markets and products.
14. 1800 Ultimate Margarita
Insider Monkey Score: 4
1800 Tequila, the world’s most awarded tequila and the #1 premium tequila brand in the U.S., is made with 100% Blue Weber agave harvested at its peak in Tequila, Mexico. Last year, the brand announced its designation as the Official Tequila of both the San Francisco 49ers and the Chicago White Sox.
1800 Ultimate Margarita ranks among the Top Alcoholic RTDs in America.
13. Malibu RTDs
Insider Monkey Score: 4
Malibu has also evolved from a coconut proposition to a robust portfolio of innovative and versatile products as noted with the brand’s highly successful RTD cans. In 2021, the brand introduced Malibu Cocktails in a Can, a new range of refreshingly tasty and high-quality premium canned cocktails made with natural flavors and Malibu’s signature real Caribbean rum. Pernod Ricard became the owner of Malibu when it acquired Allied Domecq in 2005, in a deal worth $14 billion.
With a staggering 96.9% growth in sales volume last year, the Malibu RTDs are placed among the Fastest-Growing Spirit Brands in the World.
12. Smirnoff Ice
Insider Monkey Score: 4
Smirnoff Ice is a great flavored carbonated beverage, made utilizing Smirnoff’s over 100 years of alcohol expertise to create a citrus flavored malt that is light and refreshing. One of the Most Popular malt-based RTDs in the Country, Smirnoff Ice has been a staple of get-togethers and parties since 1999.
11. Topo Chico Hard Seltzer
Insider Monkey Score: 4
Owned by Molson Coors, Topo Chico Hard Seltzer is a modern take on refreshment that brings entirely new character to the red-hot seltzer category. With refreshing flavors like Strawberry Guava and Ranch Water Hard Seltzer, Topo Chico Hard Seltzer delivers a crisp taste that’s crafted with soul. The Coca-Cola Co. owns the Topo Chico mineral water range and has worked with Molson Coors on alcoholic products since 2019.
Topo Chico is counted among the Most Popular RTDs in America According to Reddit.
10. CANTEEN Spirits
Insider Monkey Score: 5
Founded in 2019 by Brandon Cason, Daniel Barnes, and Marc Donati, CANTEEN Spirits’ brands are low carb, low ABV, and contain natural flavors and zero sugar. The Texas-based company announced in 2021 that it had secured $31 million in funding to boost its expansion across the U.S. and open a new facility.
CANTEEN Spirits sold 517,000 cases in 2020.
9. Jose Cuervo RTD
Insider Monkey Score: 5
Jose Cuervo RTD is a line of ready-to-drink Margaritas which sold over 3 million cases in the American market in 2021, thus solidifying the pre-made cocktails’ place in the country’s beverage market.
Jose Cuervo RTD is one of the Most Popular Liquor Brands in America.
8. Bacardí Rum Cocktails
Insider Monkey Score: 6
Bacardí Ready To Serve Cocktails are crafted with Bacardí award-winning rum, all-natural flavors, real ingredients, and are gluten free with no artificial sweeteners. Bacardí is perhaps the most iconic rum in the Americas and is credited with creating classic cocktails, such as the Cuba Libre (rum and Coca-Cola) and the daiquiri, a favorite of Ernest Hemingway.
Founded in Cuba, Bacardi Limited is one of the largest family-owned spirits companies in the world.
7. The Finnish Long Drink
Insider Monkey Score: 7
Launched in the U.S. in 2018, this RTD beverage was inspired by the original Long Drink – a loose combination of gin, grapefruit soda or juice, and carbonated water that can be found on tap all over Finland. Distributed in 43 markets in America, The Finnish Long Drink currently stands among the Most Popular RTD Brands in the country.
6. On the Rocks Cocktails
Insider Monkey Score: 7
On The Rocks offers a modern twist on classic cocktails combining premium spirits, natural flavors, and pure creativity in an upscale, ready-to-serve product. The brand’s portfolio delivers bar grade cocktails without the hassle of playing mixologist.
Founded in 2015, On the Rocks Cocktails was acquired by the Japanese Beam Suntory, Inc. in 2020.
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