Ready to Drink A to Z

Ready-to-Drink IN THE DARK AGES

Ready-to-Drink (RTD) has been part of our drinking repertoire for over 50 years. First launched in Australia in the late 1960s with the classic UDL in a can, we’ve come a long way. Always at the mercy of the latest trend, the RTD offering is in a constant state of flux and change as a litany of mixes, styles and formats fight for ‘share of throat’ in an increasingly fickle consumer-led market. Investments into product development in this sector are huge, and often a gamble, but for the new products that tap into the zeitgeist, they are the big success stories of the liquor sector.

Reviewing the key trends over the past decade in the RTD category in Australia and one thing remains constant; dark spirit RTDs are king. Despite innovation departments working tirelessly at consumer research and focus groups, creating new and radical products to promote the light RTD sector, they are yet to surpass the enduring lead of the dark spirit RTD.

The latest report from IRI Worldwide on RTDs (MAT 01/07/2018)* states that dark spirits are by far the largest segment with a huge 81 per cent share of the RTD category. Dark RTDs hold the lion’s share of the category that today is worth $2.5 billion and accounts for 14 per cent of the entire liquor market in Australia. RTD is an increasingly important category because it accounts for 14 per cent of dollars but 27 per cent of dollar growth. Premiumisation is still a key trend driving the RTD segment as consumers continue to trade up to the more premium product.

In volume it is the equivalent of 212 million litres, up three million from last year. That growth is led by bourbon and whiskey, which contributed 76 per cent to the category.

The resurgence in bourbon has been the most note-worthy, going from a -0.1 per cent decline last year to a +6 per cent growth this year. Wild Turkey 101 leads this race. It doubled in growth from + 8 per cent last year to + 17 per cent this year. Jack Daniels and Jim Beam Double Serves have also contributed to this spike in growth figures.

Speaking with Eddie Russell, master distiller of Wild Turkey while visiting Australia to launch Longbranch Kentucky Straight Bourbon Whiskey, he said Australia is the largest market in the world for Wild Turkey and he attributes that to the RTD market.

“The Wild Turkey Bourbon RTDs are not packaged anywhere else in the world,” said Russell. He said they package the RTDs in Australia and send the bourbon here in bulk.

The leading RTD products in terms of dollar growth (Actual YA) in Australia are all bourbons and whiskies and all of them are mixed with either cola or dry.*

They are: • Canadian Club & Dry can 375 ml • Jim Beam Black & Cola 375 ml • Bundaberg Up Rum & Cola 330 ml • Jack Daniels & Cola 330 ml

Albeit off a 19 per cent share of the market, there is movement and growth on the lighter side of RTDs. Vodka has experienced a turn around with 5 per cent growth (vodka RTD growth was flat last year) and leading on to the current consumer interest in gin; gin-based RTDs have also experienced growth. Diageo’s Tanqueray and Tonic in particular has performed well since its launch at the beginning of the year. The key drivers for growth in the light spirit RTD sector are Vodka Cruisers and the original RTD, UDL; both contributed $15 million to the RTD market share in value.

The key drivers behind traditional innovation in the RTD sector have been convenience, followed by trend and then providing for a particular occasion. Recently, however, there was another sub category that emerged focused on less sugar, less preservatives and natural flavours – the so called ‘better for you’ RTD. This was touted to be the next big thing in the category and a wave of RTDs hit the market that fit the bill - Absolut Botanik, fruit botanical mixed with vodka and carbonated water and Smirnoff Pure with no preservatives and all natural ingredients for example. Having got off to a roaring start Smirnoff Pure saw a -46 per cent reduction in growth in its second year and Absolut has been in decline for two years. Despite these products losing momentum, RTDs with tonic and soda mixes are up +57 per cent versus last year and now worth 0.5 per cent of the category. experiencing year on year growth for the past four years. This would indicate there is a market for a lower calorie, less sugar offering, however, consumers don’t want to be blatantly reminded they are seeking out these products as RTDs including elderflower or featuring the words ‘sugar-free’ or ‘diet’ are in collective decline at -7 per cent. One product that could fit into the category of ‘better for you’ is the Jameson Irish whiskey RTD with Natural Raw Cola. It uses natural kola extract within the blend and has been experiencing steady growth since its launch five years ago and is now worth $7 million. Speaking with Marketing Manager, Spirits, at Pernod Ricard, Oliver Dos Remedios, he says, “We’ve seen fantastic growth across the Jameson RTD range, growing at +42 per cent volume and +39 per cent MAT, where we have placed strong focus on strategic sponsorships and collaborations, such as St Jerome’s Laneway Festival, to create unique experiences for consumers to enjoy – which we believe has played a vital role in our results.

“Australia is one of the highest per capita consumption rates globally. Due to the convenience of the RTD format, we believe it will continue to play an important role in Australian consumers drinking occasions, presenting many opportunities for the future.”

The RTD category is really unique to Australia. Our lifestyle presents a myriad of occasions that are well suited to the RTD format hence its continued success. It is those times where we enjoy the outdoors, BBQs, festivals, moment with friends and celebrations that embrace the RTD as the convenient choice to enjoy our favourite brand. From the first crack of a UDL can in 1969, the RTD has woven itself into the fabric of our Australian culture but never sits on its laurels, each year we can look to the producers for our next wave of innovative and exciting products to hit retail shelves.

INFORM An A to Z of RTD

Absolut Botanik Berry Lime & Vodka

Distributor: Pernod Ricard

Refreshing and summery, Absolut Botanik Berry Lime is flavoured with blueberry, lime and cucumber matched with single-source Swedish Vodka. It makes for a fresh, lightly sparkling drink.

Absolut Botanik Berry Lemon & Vodka

Distributor: Pernod Ricard

Blueberry, lemon and coriander give this Swedish single-source vodka an original twist. It’s fresh, clean and lightly sparkling.

Bundaberg Rum: Lazy Bear

Distributor: Diageo

A refreshingly different premixed drink from Bundaberg, Lazy Bear combines Bundaberg Rum with the dry ginger ale and natural lime. Lazy Bear is best served chilled with a slice of fresh lime.

Canadian Club and Dry

Distributor: Coca-Cola Amatil

Canadian Club blended with Dry or Cola is proving one of Australia’s leading RTD’s.

Canadian Club Premium Dry

Distributor: Coca-Cola Amatil

Canadian Club Premium is a 6% ABV offering, providing unrivalled smoothness and mixed with dry for drinking pleasure and convenience.

Canadian Club and Zero Sugar Dry

Distributor: Coca-Cola Amatil

Canadian Club and Zero Sugar Dry is a smooth mix of Canadian Club Whisky and Zero Sugar Dry. Enjoy chilled or poured over ice.

Gordon’s Gin: Gordon’s Premium Pink Gin & Soda

Distributor: Diageo

Combines the subtle sweetness of berries in Gordon’s Premium Pink Gin with the lightness of soda to create a refreshingly tasty pink spritz. Sweet juicy raspberry, jammy, strawberry, lemon and juniper twist, balanced sweet and with a tangy palate. Dry clean finish.

Jack Daniel’s Tennessee Whiskey & Cola

Distributor: Brown Forman

Jack Daniel’s Old No. 7 is charcoal mellowed drop by drop, giving this whiskey its unique flavour. Enjoy Jack mixed with cola or also available with crisp dry and refreshing lemonade.

Distributor: Brown Forman

Two shots of Jack Daniel’s Old No. 7 Tennessee Whiskey perfectly mixed with cola to 6.9 per cent ABV, for those who appreciate a bolder expression of Jack Daniel’s signature whiskey taste.

Jack Daniel’s Double Jack & Dry

Distributor: Brown Forman

This is the newest member of the Jack Daniel’s RTD family. Two shots of Jack Daniel’s Old No. 7 Tennessee Whiskey perfectly mixed with dry to 6.9 per cent ABV. The bold, smooth taste of Old No. 7 whiskey is balanced with the crisp ginger ale for a refreshing dry finish.

Jack Daniel’s American Serve Cola

Distributor: Brown Forman

A small can with a big whiskey taste, it’s a double pour of Jack Daniel’s Tennessee Whiskey with a splash of cola. Serve it chilled or poured over ice into a rocks glass.

Gentleman Jack & Cola

Distributor: Brown Forman

Gentleman Jack – a smoother Tennessee Whiskey and charcoal mellowed twice for exceptional smoothness. This mix with cola brings out the whiskey’s caramel and vanilla flavours. Gentleman Jack is for those special occasions.

Jameson Smooth Dry & Lime

Distributor: Pernod Ricard

A unique blend of smooth triple distilled Jameson Irish Whiskey with Dry & Lime makes for a refreshing twist on this classic combination. Enjoy chilled from bottle or can or over ice.

Jameson Natural Raw Cola

Distributor: Pernod Ricard

A unique blend of smooth triple distilled Jameson Irish Whiskey with natural ground raw cola. The Natural Kola extract within the blend gives this cola flavour a unique complexity, depth and enhances the overall flavour. Enjoy chilled from bottle or can or over ice.

Jim Beam Kentucky Serve and Cola

Distributor: Coca-Cola Amatil

Jim Beam Kentucky Serve is 9 per cent Jim Beam amplifying and highlighting the quality taste of Jim Beam White label Bourbon with less cola like never before.

Jim Beam White Label Bourbon and Cola

Distributor: Coca-Cola Amatil

The ‘Original’. The pairing of quality bourbon and cola provides the sweet and luscious flavour of Jim Beam White Label.

Jim Beam White Double Serve and Cola

Distributor: Coca-Cola Amatil

The Jim Beam White Double Serve has an even fuller, smoother flavour with two standard serves of quality Kentucky Straight Bourbon Whiskey mixed with cola.

Johnnie Walker: Johnnie & Ginger

Distributor: Diageo

The depth of Red Label with the refreshing taste of natural ginger, it combines the spicy depth of 35 malt and grain whiskies that make up Johnnie Walker Red Label, perfectly balanced with ginger ale for a refreshing taste.

Southern Comfort and Cola

Distributor: Southtrade International

Classic Southern Comfort is the whiskey of New Orleans known as the ‘Grand Old Drink of the South,’ its signature and mellow blend of whiskey, fruit and spice mixed here with its perfect dance partner, cola.

Smirnoff: Smirnoff Pure

Distributor: Diageo Flavours:

• Smirnoff Passionfruit, Lime & Soda • Smirnoff Cranberry Apple & Soda • Smirnoff Lime & Soda • Smirnoff Ginger & Lime Soda • Smirnoff Orange & Mango Soda

Smirnoff Pure is the first premix drink from Diageo to combine vodka with natural ingredients and no preservatives or artificial ingredients. Appealing to a new generation of consumers who want drinks that are lower in sugar than traditional premix but don’t want to compromise on taste.

Tanqueray: Tanqueray & Tonic

Distributor: Diageo

Tanqueray Gin & Tonic is the simple way to savour a perfectly balanced, ready to drink Tanqueray & Tonic. A petite version of Tanqueray’s iconic emerald glass bottle houses the expert blend of Tanqueray London Dry Gin, paired with a soft citrus signature tonic, to create a bar quality Tanqueray & Tonic. To sip at its best, enjoy Tanqueray’s Gin & Tonic chilled, straight from the bottle or poured into a glass over ice with a generous squeeze of lime.

Vodka +

Distributor: Vodka +

Vodka+ is Australia’s first no sugar, no carbs, gluten free vodka premix range. This product caters for the fast growing global ‘health conscious’ boom. Sparking water plus a hint of flavour makes for a refreshing drink after a long day.

West Coast Cooler

Distributor: Pernod Ricard

The old favourite is a wine based cooler with exotic fruit flavours. Its crisp, balanced taste is complemented with hints of exotic fruits and an effervescent finish, making it a refreshing alternative to beer or cider.

Wild Turkey 101 & Cola

Distributor: Campari Australia

Australia is the only country in the world where you can drink Wild Turkey Kentucky Bourbon in an RTD format. Here Jimmy Russell’s signature bourbon, Wild Turkey 101, with its high rye content makes for the perfect premium bourbon cola premix.

The West Winds Gin & Tonic

Distributor: West Winds Gin

With over 50 per cent indigenous Australian botanicals this award winning West Australian gin is blended with tonic for the ultimate convenient G&T mix for all occasions.