RTDs: CHEERS TO CONVENIENCE

Cheers to convenience

As operators benefit from the rising popularity of the RTD, Molly Nicholas explores the different formats and marketing tactics proving popular in the pub scene.

OVER RECENT years, RTDs have become an integral part of the pub experience, offering consistency and convenience that caters to the changing demands of patrons. Introducing a new level of versatility, the category gives pub operators the opportunity to stay on top of the latest trends and innovations.

While many people might expect drinks to be made fresh in the on-premise, the convenience of the category has earned it a welldeserved place in a late-night environment. Speaking about the benefits of stocking RTDs on-premise, Jimmy Curran, customer experience manager at Kickon Group, explained that quick-serve drinks help to ease pressure in busy periods.

“[Serving RTDs allows for] fast, efficient and consistent beverage service, as well as flexibility in our offers, opportunities to explore new suppliers and waste reduction. While the hospitality industry is going through a skills shortage, RTDs are a great option.

“Seltzers have been on the rise for some time, but we are also seeing RTD cocktails asked for more frequently. The demand for house-made cocktails still very much outweighs RTDs, but lunch time meetings and brunches are where these types of drinks play a part,” explained Curran.

“We have cocktails on tap and RTS cocktails; the benefit of this is most definitely speed and consistency. It also has a positive effect on spend per head.”

With speed of service proving a strong selling point for RTDs in a pub environment, these drinks also require less staff expertise compared with the creation of fresh cocktails, at a time when skilled staff shortages are prominent throughout the industry. Consumers also benefit from the instant gratification of enjoying consistent and high-quality cocktails without the wait.

Maxwell Farrow, brand manager at Brookvale Union, says that RTDs give pubs the chance to collaborate with suppliers and producers on enhanced marketing opportunities.

“Along with providing variety and increased speed and efficiency, pubs can benefit from an increased level of support

from RTD brands to drive volume through their venues. This can be anything from tap support kits, additional mobile service points with draught capability, to bespoke venue fit outs and styling for events.”

Shaking up the pub scene

As consumer preferences continually evolve, RTDs allow pubs to readily incorporate new innovations and stay in tune with new trends. By embracing RTDs, pubs can appeal to a wide customer base and stay relevant, but the secret to success relies on an understanding of which formats are proving popular.

Spirit-based RTDs are especially prominent in the pub scene, and allow customers to experiment with premium spirits in a convenient and affordable way.

“The growth of RTDS, light RTDs in particular, over the years has seen an increased demand for variety of flavour, ABV and spirit base,” said Farrow. “Pubs can leverage this by putting RTDs at the forefront, in line of sight for consumers, ultimately making their decision easier.”

With Beer DeLuxe Albury stocking a wide range of RTDs, senior operations manager Mitch Harris explained which varieties have kept customers coming back for more.

“Lower ABV RTDs are the most popular, at around 4.0-4.5 per cent. Brands like White Claw and Billson’s are popular for the range of flavours, and Billson’s for being one standard drink per can. The younger generation are much more open to lower ABV products.

“There are unique flavours in RTDs that can’t be replicated by a bartender, that customers are specifically asking for. For example, Billson’s has a wide range of unique and trending flavours, like the new Twister which is based on the flavours of a popular icy pole.”

Canned and bottled drinks are perhaps the most prevalent form of RTDs today, but draught RTDs are not to be forgotten. Providing an alternative to traditional offerings found on the tap bank, Farrow explains why draught RTDs have gained popularity in pubs over recent years.

“For consumers, it delivers a consistent, quality product that they would otherwise enjoy at home or at a party with mates. For brands, it’s an opportunity to land personality and visual identity at the tap bank. This is where Brookvale Union has a lot of fun, providing an extra level of theatre and premiumisation through glassware, tap handles and fonts, decals and bar runners.

“Products such as alcoholic ginger beer or vodka lemon lime and bitters from the tap served with ice and a wedge of lime lives up to punters expectations of a freshly made drink.”

Mix up your marketing

Integrating RTDs into pubs and allowing them to compete with more traditional drinks relies on effective marketing, which often starts on-premise. While you might think that draught RTDs speak for themselves, Farrow explains what tactics can be employed to upsell these products, as well as less visible products which are stored in fridges.

GENERATIONAL SHIFTS

With each patron comes a diverse range of preferences and tastes, and the evolving trend of RTDs adds a new layer of diversity. Within this category, age plays a significant role. Thanks to social appeal and contemporary trends, young adults are dominating the demographic of RTD enthusiasts.

While Harris says that dark spirits RTDs are popular among customers aged 25-39, it is the younger demographic of drinkers driving category sales.

“RTDs are popular with our late-night trade, which tends to be 1825s who are demanding the variety and convenience. Whenever there are new flavours released, we like to be the first to market with these for our customers.”

As the variety of the RTD category appeals to the younger consumer, Farrow explains that the desire for Instagram-worthy drinks also plays a big part.

“Younger consumers aren’t afraid to have a bit of colour in their drink to match the mood or reflect their personality, so utilising suitable glassware and providing the perfect serve is essential to letting this shine through.”

“Social media marketing and brand placement [for RTDs] is geared to a younger or Gen Z demographic, in my opinion,” added Curran. “Younger customers have seen these products available since they were able to consume them, so rather than the traditional or classic options, we see that these options are often their first choice.

“[Being] a healthier option is often the reason for purchase through a younger customer base, especially when it comes to seltzers.”

Though Gen Z and Milennial drinkers might be the categories’ biggest buyers, Farrow explains that the light and refreshing nature of the category appeals widely to session drinkers of all demographics who are looking for a break from their usual beverage.

“While we see RTDs vastly consumed by 18-30 year olds, it’s important to recognise that everyone occasionally wants to take a break from the traditional beer, wine and cider. We see this particularly with Brookvale Union alcoholic ginger beer as consumers either seek something more refreshing on balmy summer days, or that lighter wedge between beers to break things up and keep it interesting.”

EXPERIENTIAL CONSUMPTION

As we approach the holiday season, CGA by NIQ’s 2023 Channel Strategy Study for the US on-premise revealed that experience-led visits present a window of opportunity for venues, with 20 per cent of on-premise customers visiting experiential bars.

Within experiential bars, it was found that RTDs and hard seltzers experienced the highest levels of consumption, at 24 per cent and 23 per cent respectively, making venues with an experiential offering well positioned to capitalise in the RTD category.

“In instances where ginger beer appears on the tap bank, utilising tap talkers and point of sale in the venue to inform consumers of other offerings in the fridge is one strategy we employ at Brookvale Union.

“Ensuring that products appear on drinks menus throughout the venue is key and can be improved through imagery so that consumers can join the dots with the product they find in the bottle shop fridge.

“Impulse purchases play a role and are supported by bucket promos or ‘fish tanks’, which work a treat on the bar top and often adds to the atmosphere without looking tacky.”

Showcasing refrigerated RTD stock is crucial in driving sales. Ensuring that chilled stock is prominently placed and correctly categorised can stimulate customer interest, as Harris explains.

“Fridge location and visibility is very important, and making sure stock is well organised and that the right lines are in the right locations. For example, not mixing up vodka products with dark spirits.

“While a colourful display really helps, RTDs also market themselves. Customers will recognise products when they see other people drinking them.

“Ask your customers what they want, and give them that. It helps to work with suppliers that have large national marketing campaigns and strong brand recognition, upselling verbally can also work well too.”

While prominent displays and effective presentation can help to promote RTD stock, a crucial step in marketing your offering is getting your price point right and ensuring you have a variety of stock that caters to all budgets.

“RTD price point is crucial,” says Curran. “Now more than ever, from what we are seeing, customers expect RTD prices to be lower than beer or wine by the glass.”