HAPPY HOURS ON THE GO WITH RTD COCKTAILS
Ready-to-drink (RTD) cocktails are having their moment in India. The Covid-19 crisis and subsequent closure of pubs and bars confined people indoors, leading to the emergence of the on-premise cocktail culture at home. Even with restrictions being lifted, the cocktail hour continues to have RTDs as companions, with several players entering this space.
Viraj Sawant, co-founder of InACan, a crafted canned cocktails startup, says, “Everybody is looking for a convenient option to drink. We were the first ones to launch canned cocktails in the country in 2020. It was during this time that people were looking to experiment and try out new stuff at home. Our sales have grown by almost three-four times in the last four months, after our participation at Shark Tank India. People are accepting it as a quality product, and it is convenient, too. Consumers don’t need to give two thoughts about what to drink, how to mix it and what to mix it with. They just have to chill it, open it and drink it.”
RTDs are conveniently packaged, alcohol-included cocktails that can be consumed on the go. These offer the evolved consumer segment a hassle-free drinking experience with convenience and great variety. The price range is also much cheaper as compared to a cocktail served in a bar. “Most of us don’t know how to make a cocktail, or even have the right equipment to make one at home. Sameer Mirajkar (co-founder) and I worked in the USA and UK. We’ve seen canned cocktails in the market, and we didn’t have one here. We thought it’s an excellent opportunity to fill the gap in the market,” adds Sawant. One of their most popular cocktails is Rum Latte, a concoction of rum, coffee, vanilla and hazelnut.
The ready-to-drink segment has a couple of verticals, such as ready-to-drink wines and ready-to-drink mixes, among others. “Ready-to-drink cocktails is another niche in this category that is growing phenomenally. We expect this to grow from 0.5% of share of the entire alcobev market to 3% by 2025. This change that is happening in the alcobev industry, is all because of the change in the preferences of millennials and the younger generation. People want to move away from those heavy drinks, which are not so hygienically healthy for you. They are looking for healthier and lighter alternatives, on the go,” says Vidur Relan, founder, BEAT Cocktails, which has launched carbonated gin-based cocktails. His brand is currently offering three flavours — original, watermelon crush and cucumber ice.
According to a report by Grand View Research, the global ready-to-drink cocktails market size is expected to reach $2.43 billion by 2030. Asia Pacific is expected to register the fastest compound annual growth rate of 14.9% from 2022 to 2030. “The convenience offered by these drinks, along with the low alcohol level and lower price, in comparison to cocktails served at bars, make them an ideal choice for young consumers,” states the report.
Nitesh Prakash, founder, O’ Be Cocktails, says, “Millennials and Gen Z are looking for drinks to enjoy and socialise with friends rather than just to get high. RTD products range from anywhere between 3% to 8% alcohol by volume and are ideal for social gatherings at home and house parties. An Indian consumer is looking to experiment and for variety beyond traditional alcoholic beverages, and the ready-todrink cocktails market is here to provide it.” The firm offers four flavours of cocktails, including Fab Cosmopolitan, Lively LIIT, Zesty Mojito and Sauve Gin & Tonic.
The shift in consumers’ tastes towards creative choices has led to brands collaborating and launching limited edition cocktails in a bottle. Sakshi Saigal, co-founder, Stranger & Sons, says, “We launched Perry Road Peru, a distilled cocktail, in collaboration with The Bombay Canteen, with the overarching idea of elevating the cocktail culture in India and embracing unconventionality while uplifting the home-drinking experience. Humble and highly seasonal, the peru (pink guava) played the perfect muse for us to capture Mumbai’s spirit.”
She adds, “India’s growing cocktail culture is also proof that a lot of consumers are excited to try local, homegrown products as well as new, atypical cocktails that are rooted in India’s heritage, but with a modern approach. Hence, there’s definitely a future for ready-to-drink cocktails.”