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MIXED DRINKS CATEGORY: IN THE MIX
In the mix
More than just a passing fad, mixed drinks offer a wide range of appeal for on-premise operators.
By Caoimhe HanrahanLawrence.
BENEFITING FROM a recent explosion of new products entering the market, and demonstrating multiple avenues for growth, the mixed drinks category has clear potential as part of a venue’s core beverage offering.
For David Chun, venue manager at the Darling Pavilion in Sydney’s CBD, the category has distinct benefits for both consumers and operators.
“Low ABV levels, easy to drink flavours and taste consistency are big appeals for consumers. From an operator perspective, fast service is the biggest appeal, and branding also helps,” he said.
In addition, the category is expected to continue its growth trajectory over coming years. While the IWSR estimates that global alcohol volume growth will slow to one per cent from 2022 to 2027, the global RTD market is expected to reach US$40b by 2027, representing a 12 per cent growth margin over the same period.
Identifying the appeal
The mixed drinks category is perceived as both approachable and exciting for younger adult consumers, as Reid Sexton, group head of external communications at Asahi Beverages, told Australian Hotelier
“While Gen Z are looking for something sessionable and easy drinking, they are also looking for products which reflect their sense of adventure and spontaneity,” he said.
Many mixed drinks also appeal to a unisex audience, as Olivia Waters, Matso’s brand manager for Good Drinks Australia, has noted with Matso’s Vodka Lemon Lime Crush.
“With 66 per cent of Matso’s Ginger Beer consumed by females, the Matso’s brand has strong unisex appeal, with particularly strong appeal among women, making it a more universal choice,” she said.
Andrew Culph, venue manager at Bli Bli Hotel on the Sunshine Coast in Queensland, also sees a rise in mixed drinks sales in the late afternoon and early evening.
“Pre-dinner is the biggest mixed drinks occasion, between 4pm and 6pm. It’s also our happy hour, which is 15 per cent off for members. Our sports bar also ranges between tap beer and mixed drinks for the majority of consumption,” he said.
Likewise, Lisa Lemon, manager at Perth’s The Gate Bar and Bistro, sees an increased uptake of mixed drinks on the weekends.
“When people are coming in for a regular day out, or a few casual drinks with friends, I’ll hear them at the bar umming and aahing about what they want to drink, and they will get Matso’s Vodka Lemon Lime Crush. It’s approachable and easy to start with while they’re deciding on another drink, but nine times out of 10, they will stick with the Matso’s,” she said.
Additionally, Chun said that the Darling Pavilion particularly promotes mixed drinks during events, where quick service is of high importance.
“On special event days we usually promote mixed drinks if we are after speed of service or limited to ABV restrictions. We have various cans that we use on our event days, but usually our seltzers and ciders are a daily product sale.”
Taste sensation
Flavour is a major appeal for mixed drinks consumers, with lemon and citrus flavours currently dominating the market. New products in this space are being well-received.
“Matso’s Vodka Lemon Lime Crush has only just launched on tap, but it’s already exceeding expectations, reaching its three-month sales target within the first few weeks of launch. As always, Matso’s set out to find the perfect balance of flavour and refreshment, with this original take on a much-loved classic,” Waters said.
The mixed drinks segment is expanding, with producers exploring new flavour options to keep the category interesting.
“Flavour innovation in spirits has been overwhelmingly evident, and while it’s engaged the next gen customers by overcoming taste barriers, it’s also given core customers a reason to stay engaged,” Sexton said.
RTDs are the fastest growing segment in alcohol, yet the tap bank isn’t yet reflecting the sheer size and appeal of this segment.
Olivia Waters, Matso’s brand manager, Good Drinks Australia
In addition, the ‘better for you’ trend and a maturing consumer base are leading drinkers to seek out products with natural ingredients, according to Waters.
“Consumers are increasingly prioritising naturalness and authenticity in their drink choices, seeking beverages made with real ingredients and fewer artificial additives.”
Draught or can?
The mixed drinks category is split between draught and pack, with both serve options presenting distinct benefits for the on-premise environment.
Offering mixed drinks on tap gives the product immediate exposure to consumers. Lemon has found that draught mixed drinks don’t require much promotion at The Gate.
“It’s not something we’ve had to push very hard. When we started offering Matso’s Vodka Lemon Lime Crush, we did an initial launch where people came down to do a bar shout, but we’re quite fortunate with where the product is positioned. We have it in an optimum spot out in our garden bar, which is the main bar. We are selling high just from its position,” she said.
However, the popularity of this growing segment is not fully reflected in tap share.
“RTDs are the fastest growing segment in alcohol, yet the tap bank isn’t yet reflecting the sheer size and appeal of this segment,” Waters said.
When it comes to RTDs in pack, the category is very well represented. According to Quantum’s latest 2022 data, 10 of the top 15 fastest growing new products in glass bottles were flavoured products, evidencing the strong presence of flavour-forward RTDs in this serve style.
Lemon has found label design to be particularly important in selling RTDs in pack.
“With RTDs in cans, if you see someone walking around the venue and drinking one, you will know that we serve them, and they sell quite well in the evenings and on the weekends,” she said.
Sexton added that packaged mixed drinks are particularly appealing to venues with limited tap space.
“While we are seeing more and more nonbeer products make their way into draught, not all venues have the capability to serve tap products. Even in those that do, there are a finite number of taps.”
Simple serves
A third option beyond draught and packaged mixed drinks is simple cocktails of a single spirit and a mixer. The wide number of serve options and economy of space are two key appeals of Vodka Cruiser’s new Flavours range.
“Our new Vodka Cruiser Flavours range provides customers with an option that requires no draught infrastructure but opens up endless serve possibilities: from basic mixers to cocktails and even a classic rocks serve, bartenders have the freedom to remix the product however they like,” Sexton said.
This style of drink is particularly popular among older drinkers, as Culph has noticed at Bli Bli Hotel.
“The vast majority of our mixed drinks come from the well, and most drink dark spirits short and long spirits tall. That’s probably due to our demographic, which skews older, into that 50-plus age range. They are a little more set in their ways and won’t often reach for something that’s pre-mixed in a bottle.”
A rising star
A positive sign for the health of the mixed drink category is its seasonal stability, with consumers continuing to engage with the category year-round.
“If it’s their main preference, consumers will drink those non-beer beverages throughout the year,” Lemon said.
In fact, Lemon is considering adding another mixed drink to the draught offering at The Gate to provide more options within the category.
“Mixed drinks are becoming a trend, and we have considered if there is room on our banks to grab another product of a similar nature. Every other category that we have is covered well, but Matso’s is the only product of its nature that we have on our tap banks,” she said.
For Chun, established brands entering the mixed drink market is another indicator of the category’s success.
“We can see that cocktails and long drinks from well-known brands are trying to capture the RTD cocktail market via leveraging the brand equity and loyalty of their existing brands,” he said.
Waters sees potential in Australian brands entering the market, especially with light spirits products.
“Australian propositions are driving majority growth in the Light RTD segment, particularly when they have spiritual homes which can demonstrate authenticity,” she said.
Amid softening consumer demand for traditional categories such as beer and wine, the continued popularity of mixed drinks is a promising avenue for boosting beverage performance in the on-premise.
A personal touch
Personalisation is a key trend across the liquor industry, with consumers looking for offerings they can customise to their tastes.
At Bli Bli Hotel, Culph has been using garnishes to give mixed drinks an individual touch, as well as offering a premium feel.
“In the world of mixed drinks, garnishes have become much more important: things like lemons, limes, and oranges. There’s a lot of places dehydrating them now for garnishes to get really consistent flavour and price year in and year out,” he said.
“It’s being driven both by the consumer and the producer. For producers, suggested garnishes are a way to differentiate their product, and as consumers, it offers customisation. Whether they want their drink with cucumber or a grapefruit slice, it creates a unique experience for the individual.”
