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Vodka-based drinks lead 40 per cent surge in RTD sales

By Wei Zhang
1 min read
In this article (5)

Ready-to-drink sales have recorded double-digit growth over the past year, primarily driven by vodka-based drinks, according to Liquor Marketing Group (LMG).

In a 12-month period starting from March 2020, the RTD category achieved 40.2 percent growth in dollar sales across the group’s stores, which include Bottlemart, SipnSave, Harry Brown, and Thirsty Camel. RTD sales in this year’s first quarter across the stores surged 39.3 percent compared to the previous quarter.

Meanwhile, the vodka subcategory saw the strongest demand with a 72.3-per-cent increase, followed by bourbon and seltzer.

“LMG’s dollar sales growth for the category has continued to be higher than the total market average,” said Scot Hayman, national merchandise manager for beer, spirits, and RTDs at LMG.

“This trend has been consistent in each state and for all RTD segments.”

The strong performance of RTDs sales was recorded in WA, with more than 50-per-cent growth, followed by NSW with 44.7 percent.

According to Hayman, the strong performance of RTDs sales can be attributed to the increasing demand for healthier options.

“RTDs with low and zero sugar, light RTDs – particularly in vodka and gin, and Seltzer align with this trend and have given shoppers a reason to rediscover and re-engage with RTDs, while simultaneously attracting new buyers across different demographics and life stages,” said Hayman.

Questions & Answers

Q.

Which specific types of vodka-based drinks are driving the increased sales in the RTD category?

A.

The strongest demand within the vodka subcategory comes from RTDs with low and zero sugar, and light RTDs. These align with a consumer trend towards healthier options, attracting new buyers and re-engaging existing ones.

Q.

What is LMG's market share or position compared to the overall RTD market?

A.

LMG's dollar sales growth for the RTD category has consistently been higher than the total market average. This indicates a strong performance relative to other players in the ready-to-drink sector.

Q.

Are there any specific regions or states where RTD sales growth is particularly strong or weak?

A.

RTD sales performance was particularly strong in Western Australia, with over 50% growth. New South Wales also showed robust growth, recording a 44.7% increase in sales.

Q.

Beyond vodka, which other spirit types are significantly contributing to the RTD category's growth?

A.

Following vodka, bourbon and seltzer are the next strongest contributors to the RTD category's growth. Seltzer aligns with the trend for healthier options, attracting new buyers.

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