COCKTAILS: AUGUST 2022

There’s no place like home

Claire Hibbit discusses how easy cocktail solutions will influence whether the home cocktail movement continues in earnest.

At the height of pandemic restrictions, Australians had no choice but to turn to their own kitchens to satisfy their cocktail needs, leading to a surge of interest in at-home mixology.

Once considered unapproachable or complicated, brands have embraced and simplified the cocktail process, offering consumers premiumisation and convenience all in one.

Quality over quantity

Whether the consumer is a cocktail expert or someone curious to try something unexpected, there is now strong demand for hassle-free, bar-quality cocktail solutions that empower them to enjoy cocktails at home, any time.

“The bottled cocktail category is now well established thanks to the pandemic,” explains Maurice Melis, CEO of Global Endeavours Australia (GEA), which introduced the Batched Premium Cocktails range locally last year.

“Consumers are seeking bar quality cocktails at home, that offer ease of preparation, allow them to indulge in the occasion, curate their bar, and demonstrate their interest and knowledge in cocktails.”

Vicki Lyon, Cocktail Creator at Sophisticated Cocktail Co, says there has been a surge of pre-batched, ready-to-serve cocktails entering the market over the last 12-24 months.

“Cocktail bars have launched their own range, large brands have entered the space trying to capture some of the growing market, and a lot of independents are looking to bring better products within consumers reach,” Lyon said.

“Tasting these products is key, so working with suppliers to get the products in front of the consumer by way of tasting is a sure way to move products off shelves.”

-Vicki Lyon Cocktail Creator Sophisticated Cocktail Co

According to Brendan Moynihan, Marketing Director at Starward, the premium ready to serve category is experiencing strong double-digit growth year on year, largely driven by premium innovation and locally produced products.

In fact, Starward’s bottled cocktail range, which includes (New) Old Fashioned, Coffee Old Fashioned, and the Whisky Negroni, grew 10 times faster than the premium ready to serve category growth rate.

“Now, more than ever, consumers are looking to purchase delicious, cocktail-bar quality drinks that are conveniently packed to be enjoyed at home,” says Moynihan.

From easy mixers or ready to pour cocktails, producers have introduced both premium and price pointed options in a variety of formats to cater to all types of home bartender.

“Bottled cocktail concepts offer an increased array of choice for consumers. From larger 500-700ml glass bottles to small single shot glass bottles and 150-250ml craft slim line cans,” says Melis.

Lyon believes consumers are seeking quality over quantity when it comes to cocktails at home, but larger formats are also gaining traction as consumers still want more value for money.

“They would rather have one or two good quality drinks than low alcohol sugary versions of old. Consumers have become savvy and have access to far better choices so taste and quality are driving purchasing decisions,” Lyon said.

Convenience is another driver, as is sustainability. Sophisticated Cocktail Co sought to create an environmentally responsible product for these consumers, packaging its cocktails in AstraPouch stand up pouches, made using recycled materials with an 80 per cent lower carbon footprint than their glass bottle equivalent.

“Sustainability and eco-conscious consumers are looking for ways they can reduce waste and look for packaging solutions that make their choices more conscious,” Lyon said.

New twists on old favourites

Despite restrictions easing across most of the country, many customers still enjoy at-home socialising and dining experiences, but often shy away from cocktails.

A study* commissioned by Southtrade International found 60 per cent of consumers enjoy cocktails at home, however, many won’t make them because they are too much hassle (64 per cent) or because of lack of confidence (25 per cent). Despite this, 46 per cent of consumers that currently make cocktails at home found a pre-batched solution to be ‘appealing’.

Moynihan says the strongest performing cocktails typically tend to be the classics that consumers are most familiar with.

“Each year, Drinks International ask their top 100 global bars to rank their best-selling classic cocktails. In 2022, the Negroni and Old Fashioned cocktails were ranked number one and two. Our bottled cocktails range puts a fun twist on these classics, and as a result, all three are growing dynamically,” he said.

Starward’s range also continues to make an impact on the world stage, taking out a range of awards at the World Premix Awards in London.

According to Jarrad Bell, Co-founder of cocktail mixer brand, Mr. Consistent, there are three main considerations that influence a consumer’s decision-making process: quality and taste, price point, and convenience.

He says the price point of the bottled cocktail market has definitely increased, but it’s due to brands committing to more quality ingredients.

“Using fruit from a farm versus concentrate or flavours is mainly the cause, it’s all been great timing with the target audience wanting to be more conscious of what they are actually drinking and being okay parting with slightly more dollars for a better experience,” Bell said.

Mr. Consistent uses fruit from a local Queensland farm for its range of cocktails which includes Margarita, Cosmopolitan, Sours, Espresso Martini, and more, as well as a canned seltzer cocktail mixer range.

“Trust comes from the brand. If you do the classics really well, they’ll trust your originals,” Bell said.

Meanwhile, Batched Premium Cocktails has a 725ml bottled range, with four traditional cocktail flavours that create theatre and engagement simply by ‘shaking and pouring’, which Melis says it “is generating huge excitement with consumers.”

While Sophisticated Cocktail Co has witnessed a major resurgence of the Pornstar Martini, Margarita remains the top seller. In fact, its latest release is a Margarita made in collaboration with Sydney-based cocktail bar, Corretto Dee Why, which Lyon describes as a “Tommy’s Margarita infused with strawberry gum and pandan leaves.”

“People are in love with the drink and premium tequilas, it’s the new gin!”

Trial remains key

The continued popularity of home cocktails opens up a significant opportunity for retailers who can adapt to the ever-changing behaviour of consumers, but building awareness for easy solutions remains key.

Moynihan believes there are significant opportunities for the category as it emerges.

He advises having a clear destination in-store where all offerings are merchandised together, as this can disrupt the shopper’s journey and make them consider trialling products.

“Creating a dedicated destination at the front of the store for cocktail solutions could also be an effective strategy to capitalise on the impulse purchase opportunity,” Moynihan said.

According to Melis, bottled cocktails provide an incremental purchase opportunity for retailers, often at better margin than the base spirits.

“In-store promotions, off-location displays, point of sale materials, and tastings are key activities that will help drive sales,” he notes.

Lyon has a similar point and says: “Consumers are always looking for convenience and new exciting products to buy. Retailers are at the forefront of this, as consumers trust that they have done their research and have products on their shelves they think consumers will buy.

“Tasting these products is key, so working with suppliers to get the products in front of the consumer by way of tasting is a sure way to move products off shelves.”

Bell says Mr. Consistent, designed to be mixed with just one type of alcohol, has found success being merchandised with the matching spirit.

“Tastings have been huge for us, once people try our product, they understand the quality and ease - it’s hard to go back to a lesser quality or mixing your own cocktails,” he added.

Opportunity awaits

The home cocktail trend has already been credited as helping spirits sales experience such strong growth in the past year. As popularity surges, more entrants are looking to make their mark.

“There are a lot of players entering the market, which is great for consumers, but hard for the manufacturers to find a point of difference. Excise tax is also a big hit on manufacturers trying to manufacture, but also keep prices competitive,” Lyon said.

Bell added: “I think the challenge is space in its entirety…The booze industry in itself is massive as we forge a new category. The bottled cocktail category competes with huge categories like RTDs and wine, the saving grace is that we are very complementary tothe spirits category.”

Melis said: “With increased cost of living pressures, consumption of cocktails at home is likely to be further enhanced as consumers seek to reduce discretionary expenditure, such as going out. It is likely to continue growth over the next few years as consumers understand choices now exist for a quality cocktail experience at home, similar to out of home.”

While Lyon anticipates consumers will increasingly throw support behind venues, she says there’s still avenues of opportunity for savvy suppliers and retailers.

As she explains: “Having access to better products will see consumers feel more comfortable serving guests at dinner parties or functions. The at-home entertainer is now serving the perfect cocktail rather than Champagne on arrival.”