Stateways

StateWays-July/August 2016

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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StateWays | www.stateways.com | July/August 2016 29 that are made with real fruit as mixers in creative cocktails." INCREASING SALES Retailers interested in increasing sales on ready to drink products should offer them in the cold box, as well as display them in that section. "That's the space where people shop for convenience," Eason says. Pacheco's advice is to display it con- veniently for the customer, close to the register or where it has the most visibil- ity. Cross-merchandising is extremely important, too. "Retailers need to be creative when cross-merchandising RTDs with other products," Pacheco says. "They must be forward thinking, envisioning what their customers will be looking for in order to capture sales of RTD products. With careful planning, retailers can capture some great sales." Latitude Beverage Company has found that the best way to increase sales and build a fan base for any new product (especially a RTD product), is to sample. "Without knowing what something tastes like, many consumers are less likely to purchase, so there's no better way to increase sales of RTD products than to have consumers taste it themselves," Mehra says. "Retailers should also posi- tion RTDs in prominent locations during summer months, as it will create more excitement and curiosity surrounding the product, leading to impulse purchases." Kick also suggests making products look "fun" and putting the consumer in that mindset definitely plays a part in in- creasing sales. DOWN THE ROAD Growing demand for more sophisti- cated flavors throughout the category is prompting a new wave of product innovation. According to Mehra, there is a con- sumer shift towards products that are small-batch and handmade, so he antic- ipates seeing more craft distilleries bot- tling premium RTD cocktails. "Based on our sales for Mija Sangria - 18,000 cases our first year and projected 50,000 cases this year - we anticipate see- ing more growth in the coming years," Mehra says. Others agree that the future for RTD products continues to look promising. Eason says new, interesting flavor pro- files are coming, as well as improved and alternative packaging. "Look at the new and different labels in wine and beer," Eason says. "To stay relevant the category must move that way. RTDs have been behind the times." Kick believes there will always be some sort of interest in ready-to-drink products, but it will constantly evolve. "People might want drinks that are portable versus cock- tails prepared for the home," Kick says. "People might want plastic versus glass containers. As society changes, suppliers need to listen and make adjustments." Pacheco also sees this category continuing to grow, as the Millennial generation reaches legal drinking age. "Convenience in packaging and quality for- mulation of product is critical to this gen- eration," Pacheco says. "The Millennials are socially and digitally connected, which provides instantaneous opportunity for sales of convenient, RTD brands. As long as the products meet or exceed the con- sumer's expectations in taste profile, sales will continue to soar. Everyone wins." • MAURA KELLER is a Minneapo- lis-based writer and editor. She writes for dozens of publications on a vari- ety of business-related topics. When not writing, Maura serves as execu- tive director of the literacy nonprofit, Read Indeed.

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