Stateways

Stateways March April 2011

StateWays is the only magazine exclusively covering the control state system within the beverage alcohol industry, with annual updates from liquor control commissions and alcohol control boards and yearly fiscal reporting from control jurisdictions

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Kahlua Chocolate Latte is one of the newer flavors to enter its popular RTD line. Premium Level Growing S uppliers and retailers alike say that it is the premium level and above that is growing the most in this market. At Spec’s, for instance, the best-selling premixed Margarita is Jose Cuervo Golden Margarita, made with Jose Cuervo Gold Tequila and Grand Marnier. Bacardi’s Chisholm cites Nielsen numbers showing that the premium prepared cocktail segment is growing at just under 6%. “This is being driven by a vast array of new products and new packagings,” he said. Other suppliers point out that consumers continue to entertain more at home than on-premise because of the economy, an opportunity for these kinds of products. Overall, however, the entire category of prepared cocktails is showing a slight decline. “The lower-end is not selling,” confirmed Lisa Key of the retail chain Spec’s. Contrary to the image ready-made products sometimes have – of being inferi- or to homemade versions – many consumers of premixed cocktail products are dis- criminating when it comes to quality. This is one factor in the relative strength of the premium brands. “What we’re seeing is consumers who are a little particular, they want products that are more like ‘live cocktails,’ and are made with higher-end ingredients,” explained Malibu’s Senhouse. In June, Malibu launched its own line of premixed cocktails, Malibu Cocktails – Rum Punch, Caribbean Cosmo and Tropical Mojito. “They have done really well,” said Senhouse. “According to Nielsen, they were the number-one, number-two and fifth best-selling new prod- ucts in the 13-week period after their launch.” Bacardi Classic Cocktails added two new flavors to their line in May: the Bacardi Classic Cocktail Pina Colada and the Bacardi Classic Cocktail Strawberry Daiquiri. The Pina Colada is made with coconut water instead of coconut cream. “Coconut water is such a hot consumer trend. It definitely helps it,” said Chisholm, who explains that, because of its use of coconut water, the Bacardi Classic Pina Colada contains zero grams of fat. And Bacardi designed its new Bacardi Classic Cocktail Strawberry Daiquiri to not require the use of a blender to serve. “It was developed as a delicious ‘on the rocks’ liquid,” said Chisholm. At Spec’s, one of the most popular prepared cocktail brands is SkinnyGirl Margarita. “We can’t keep it in stock,” said Key. SkinnyGirl Margarita was developed by Bethany Frankel, author of the book Naturally Thin and a star of “Real Housewives of New York City.” A four-ounce serving contains 100 calories, is sweetened with agave nectar and contains no preservatives or artificial colors. Other suppliers have seen the uptick in consumer interest in the quality of premixed cocktails in recent years and have responded with products, such as the 1800 Ultimate Margarita, introduced in 2005 by Proximo Spirits, and Salvador’s Top-Shelf Premium Margarita, from Luxco, both of which are made with 100% blue-agave tequila. Indeed, a defining characteristic of the prepared-cocktail market is that new products are always being introduced. This market “is characterized by innovation and newness,” said Bacardi’s Chisholm. Others agree. “The ready-to-drink category is very susceptible to trends,” said Brown-Forman’s Campbell Brown. “A perfect example is the sweet tea explosion over the last few years. On the flip side, the category has its mainstays like the Hurricanes and Margaritas. We’re continuing to see a great deal of innovation around flavors, packaging and new product entries.” 50 Daily’s offers several lines of RTD cocktails including its latest offering, Frozen Lemonade in a pouch. StateWays  www.stateways.com  March/April 2011 Beam Global Spirits & Wine debuted new flavors to its Cocktail Cube line, including this Strawberry Margarita. Bacardi’s Classic Cocktails added Daiquiri and Pina Colada flavors to its popular line.

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