Over the next five years, Australia’s RTD market - already responsible for 13% of total liquor sales - is expected to continue to grow at a compounded annual growth rate of 3.5%, further consolidating its position as the third largest RTD market globally. This represents a slowed growth when compared to the 7% between 2018 and 2022.
However, despite being the only major drinks category that grew by volume in 2023, the global RTD sector remains notably fragmented on a market by market basis.
According to Sarah Campbell, IWSR’s Head of Research APAC, Australia’s RTD sector “is a sizeable, mature category that is being reinvigorated by the refreshment and premiumisation trends.” Furthermore, the traditionally dominant dark spirit-based RTD drinks “have come under pressure in the face of moderation trends,” leading “to the launch of more zero-sugar and soda-based variants, keeping interest in the category alive.”
IWSR analysis has found alcohol base to be the joint second most important factor in RTD selection. While malt- and wine-based RTDs showed declines throughout 2023, spirit-based RTDs outperformed their parent category, the only base to do so.
As it stands, vodka is the preferred base for RTDs across the 10 markets studied by IWSR, preferred by 45% of consumers. Following this, wine was chosen by 32% of consumers, whisky by 31%, rum by 30%, tequila by 29%, and gin by 27%.
Here, the Drinks Trade tasting panel drinks through six white spirit RTD products, spanning tequila, gin, and vodka:
Espolòn Sparkling Paloma
Our thoughts: “A nose that balances the full flavour spectrum of tequila with grapefruit and fresh lime in an even balance. Palate is fresh with the same flavours and just the slightest salty hint, all leading to a finish of raw agave and live. Not overly heavy on the grapefruit for a Paloma. Decent complexity and quite a full body.”
Who’s it for: “Tequila drinkers looking for an RTD - whether for convenience or just for variety, the CRT certification that this was made with real Blanco Tequila positions this as a more authentic tequila RTD choice. A well-presented option that will have appeal due to the brand recognition and due to its flavour-forward nature.”
ABV: 4.5%
RRP: $28 per 4-pack (330ml cans)
Owner/distributor: Campari
Espolòn Sparkling Margarita
Our thoughts: “Pours almost clear. Nose is raw agave, fresh lime, slight orange zest, and salt. Perhaps slightly sweeter and with a soft, rounded mouthfeel. Finish is more about the sweet/sour citrus.”
Who’s it for: “Perhaps a little simpler and more approachable than the Paloma, this will likely appeal due to the global popularity of the Margarita, which is the third most popular cocktail globally. Very approachable and refreshing - perfect for summer
ABV: 4.5%
RRP: $28 per 4-pack (330ml cans)
Owner/distributor: Campari
Papa Salt Paloma Coastal Gin & Grapefruit Soda
Our thoughts: “Pours a pale peach pink with decent bubbles. On the palate, bitter but refreshing grapefruit flavours mesh with hints of bitter botanicals. Some sweetness on profile adds bitter/sweet balance. Simple and refreshing.”
Who’s it for: “A strong, refreshing RTD option well suited to summer occasions. The brand was Co-Founded by Margot Robbie, and as such will likely appeal to her fan base. Additionally, aas eben positioned to appeal to better-for-you trend with only 99 calories per serve”
ABV: 5%
RRP: $27 per 44-pack (250ml cans)
Owner/distributor: Iconic Beverages
Clean Collective Passionfruit & Mango with Vodka
Our thoughts: “Very easy drinking and inoffensive - think flavoured sparkling water level of flavour. Low sweetness and refreshing, with subtle passionfruit and mango notes. Not designed to be over-analysed.”
Who’s it for: “Better-for-you drinkers (and a brand that has been winning in the better-for-you space in NZ for seven years). The clean can design and clear sales points (eg no sugar, no carbs, gluten free, vegan) are a major asset.”
ABV: 5%
RRP: $20 per 4-pack or $50 per mixed 12-pack (250ml cans)
Owner/distributor: Independent
Clean Collective Pear & Elderflower with Vodka
Our thoughts: “Similar to the above, but even less offensive and more delicate.
Who’s it for: “Well positioned as a less caloric drink option for those that want some flavour but not something that’ll become overpowering after a couple.”
ABV: 5%
RRP: $20 per 4-pack or $50 per mixed 12-pack (250ml cans)
Owner/distributor: Independent
Clean Collective Pineapple with Vodka
Our thoughts: “Definitely the most punchy out of the three, with the most authentic fruit flavour present on the nose. This translates to both the palate and finish, with fresh sweet pineapple notes shining through, albeit still in a very gentle, approachable way compared to Espolòn and Papa Salt RTDs.”
Who’s it for: “A great tropical better-for-you RTD option, especially for consumers that love pineapple flavouring. Simple, light, inoffensive and refreshing.
ABV: 5%
RRP: $20 per 4-pack or $50 per mixed 12-pack (250ml cans)
Owner/distributor: Independent
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Interview: Appealing to younger LDA consumers, with duo that founded RTD brand in young 20s
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