According to the latest CGA by NIQ OPUS report, more Australians are choosing to consume RTD beverages during on-premise occasions than in years gone by. This saw 49% of Australian RTD drinkers electing to drink RTDs nearly every time they go out, a significant increase from 39% in the previous year.

This comes at a time of continued growth for the overall Australian RTD market, currently the third largest globally. Already responsible for 13% of total liquor sales, Australia’s RTD sector is expected to continue to grow at a compounded annual growth rate of 3.5% over the next five years.

According to Tom Graham, Senior Manager of Australia and New Zealand at NIQ, “the rise of RTDs in the Australian and New Zealand markets presents a striking opportunity for drinks brands and suppliers to expand their reach in the on-premise sector by providing the familiarity consumers crave.”

One key factor that has contributed to this surge is the ease of service of RTD products, making it an attractive option for operators. Graham recommends Australia’s drinks industry to continue to innovate in ways that increase the value proposition offered to consumers.

“It’s clear the key takeaway for industry stakeholders is to focus on innovation in order to meet consumer demand for recognition, taste and convenience,” he said.

One of the categories best positioned for on-premise innovation is that of tap/draught RTDs, especially when tailored towards high-energy social occasions, such as nights out with friends.

Thus far, The tap RTD sector has experienced success in everything from white-spirit RTDs, such as CUB’s Hard Rated; 'value' tap cocktails, such as Vanguard’s recently-extended Cocktails on Tap portfolio; and premium tap cocktails, such as Curatif’s 20 litre kegs.

“I think the modern consumer now more than ever has got their head around premix cocktails in the on-premise environment,” Curatif Co-Founder Matt Sanger told Drinks Trade yesterday.

“They understand that if they go to a hotel or a pub or a restaurant or whatever it is, that they can order a cocktail with confidence that you don't have to have somebody standing there shaking it up all the time to get an amazing product.”

Michael Cox, Head of Sales at Vanguard Luxury Brands, added: “It takes just 20 seconds to pour and garnish our tapped cocktails, and really anyone can do it… That means high-volume venues can get 180 cocktails out each hour, that still command a premium price point with the quality of brands and ingredients used.”

Matt Sanger believes that venues are often placed in a position where they have to choose how they will "be disappointing" to their customers.

“Option number one: it's Saturday night, you're pumping. Customer comes in, they pick up the cocktail menu and they go, I love an espresso martini… Let's say it takes 10 minutes to come out, and because [you’re] under the pump, [you] let it sit in the shaker too long and it's over diluted. So it took ages and then it failed to meet the customer's expectation.

“The alternative is they come in, they go, espresso martini, I love an espresso martini, and the bartender pulls out a can or pulls the handle on a tap and they go, oh, a pre-mixed one, and then 10 seconds later, their espresso martini is in front of them… I know how I would prefer to disappoint my customer.”

Other non-cocktail RTD producers are also considering the potential of selling kegged versions of their product.

“We'll definitely consider it,” Rod Micallef, Director of Zonzo Estate, told Drinks Trade.

“We're doing it at Afloat this year, so some Zoncello’s on tap in Melbourne… It'll be interesting to see how it goes this summer. I think it'll do really well; and hopefully - if there's enough demand for it - we can go that way.

"It is better environmentally as well/less packaging [and] it's definitely more cost effective for everyone involved.”

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Tasted by Drinks Trade: White spirit RTDs

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