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RTDs keep searching for a niche on-premise By Ferron Salniker Things were good at BTL SVC. Leading up to the pandemic, the premium ready-to-drink cocktail company, was increasingly found in some of the country’s most well known hotels, at concession stands at Madison Square Garden and Radio City Music Hall, and had just received purchase orders from Jet Blue Airlines. “Then all the arenas went down, all of our travel stuff, the hotels, it all went to zero. We lost 80 percent of our customers,” said Michael Baruch, founder of BTL SVC (pronounced bottle service). While BTL SVC’s sales have rebounded, the company’s carefully planned entry into showy on-premise channels like airlines and hotels shifted during the pandemic, a move that mirrors the journey of other spirit-based RTD brands. Now, many are searching, again, for high-visibility niches as their competition grows and new channels open up post-lockdown. Demand is growing for these spirit-based products: while malt56 BEVNET MAGAZINE – JULY/AUGUST 2022
based RTDs still retain 91% share by volume in the U.S. RTD market, spirit-based RTDs grew by 53% in 2021, approximately double the growth of the wine-and malt-based categories, according to alcohol industry data provider IWSR. By 2025, spirit-based RTDs are expected to see annual volume growth of 33% in the U.S. “The increased number and variety of RTD options on the market has fueled the category’s growth, which has inspired even more brands to launch RTD products,” said Liz Paquette, head of consumer insights at Drizly. Today there are nearly 650 RTD brands on Drizly, up from 450 in 2021, which was a 45% increase over the previous year, and a whopping 170% increase over 2019. With all that variety, brands are clearly looking to distinguish themselves with new flavors, premiumization, and branding — but where they meet consumers’ lifestyles is another branding and revenue strategy in itself. While
