As more consumers gravitate toward RTDs, alcohol giants must choose between developing new products internally or buying their way in.

During the pandemic, consumers built home bars, bought 1.75-liter handles of Tito’s and Jack Daniel’s, and became at-home mixologists. Now, they want the same cocktails — margaritas, old fashioneds, vodka cranberries — but in a portable, affordable can. And a wave of ready-to-drink brands is delivering exactly that.

“The consumer that was drinking the hard liquor is now converting over to the RTD category,” said Scott Scanlon, EVP of alcoholic beverages at Circana.

The growth of ready-to-drink cocktails is one of the most significant shifts in the alcohol sector in years, posting double- and triple-digit gains, even as overall consumption declines. The trend is cannibalizing legacy spirits brands and forcing the industry’s largest companies to choose between developing new products internally or buying their way in — a decision that will shape the competitive landscape for years.

During the week of July 4th, High Noon became the top-selling brand in the spirits category — which includes spirit-based RTDs — displacing traditional liquor brands that have anchored the category for years, Scanlon said, citing Circana data. Cutwater was up 90% week over week. BuzzBallz climbed 21%. And Stateside's Surfside and Boston Beer's Sun Cruiser broke into the top 10.

“I’m not going into my liquor store and buying a handle of Tito’s anymore. I don’t need to,” said Bump Williams, founder and CEO of Bump Williams Consulting. “I can buy these pre-mixed cocktails that I just absolutely love.

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