sevendayweekender – Canned cocktails are becoming a major trend in the U.S. Americans consuming over 62 million cases of ready-to-drink spirits in 2023—a remarkable 25% increase from the previous year. These beverages have quickly risen to become the second-largest spirits category by volume, trailing only vodka.
The popularity of canned cocktails can be traced back to 2016 when White Claw entered the market. The malt-based drink offered a refreshing alternative to traditional light beer. Leading to an explosion in sales over the next five years. However, as the market flooded with new brands and an overabundance of flavors, consumers began feeling overwhelmed.
“You had a plethora of new brands entering the market, each introducing numerous flavor options, which eventually diluted the original appeal of these products. Consumers started to feel confused, leading them to step back from the category,” explained Spiros Malandrakis, head of alcoholic drinks research at Euromonitor International.
Now, major players like Coca-Cola and Anheuser-Busch are stepping into the canned cocktail space. Aiming to capitalize on the demand for high-quality, ready-to-drink options. These companies are leveraging their expertise in branding and distribution to tap into this growing market segment while addressing consumer preferences for simplicity and premium experiences.
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Canned Cocktails Gain Momentum as Spirits-Based Drinks Dominate Ready-to-Drink Market
Canned cocktails, featuring spirits like vodka, tequila, and gin instead of malt liquor. Carving out a significant share of the ready-to-drink alcoholic beverage market. From 2021 to 2023, spirits-based drinks grew by 8% in market volume, while malt-based alternatives saw an equivalent decline, reflecting shifting consumer preferences toward higher-quality ingredients and premium experiences.
Three major brands dominate more than half of the U.S. ready-to-drink spirits market, according to Nielsen and the National Alcohol Beverage Control Association. High Noon leads the category, owned by Gallo—a winery renowned for popular brands like Barefoot and Andre. Cutwater and Nutrl, backed by beer giant Anheuser-Busch InBev, follow closely as key competitors. These brands have leveraged strong distribution networks and innovative flavor profiles to capture the growing demand for convenient, spirits-forward beverages.
The rise of canned cocktails signals a broader trend toward premiumization in the beverage industry. Consumers are increasingly seeking sophisticated drink options that combine convenience with high-quality ingredients, making spirits-based canned cocktails a perfect fit for today’s on-the-go lifestyle. With major players investing heavily in the category, the future looks bright for this rapidly expanding segment.
Beverage Giants Expand Beyond Beer and Into Spirits
The beyond-beer category, encompassing both malt- and spirits-based beverages, continues to grow rapidly but remains a small portion of total U.S. sales for beer giants. For instance, it accounts for less than 5% of sales for Anheuser-Busch InBev and about 7% for Molson Coors. Despite exponential growth over the past several years, these companies have seen limited stock performance tied to this trend.
“You have a 5-year, 6-year, 7-year trend of beyond beer growth, which has been pretty exponential. But these companies’ stock prices have done very little during that timeframe. So they’re not fully participating in it,” said Robert Moskow, Managing Director at TD Cowen.
The competition is no longer limited to traditional beer brands. Coca-Cola has entered the alcoholic beverage market by collaborating with Brown-Forman, the maker of Jack Daniel’s whiskey, to create canned versions of iconic bar staples. This move demonstrates how soft drink giants are leveraging their branding power and consumer trust to carve a share in the spirits industry.
As companies increasingly focus on premium and convenient drink options, the beyond-beer segment is expected to keep expanding. While beer remains dominant, the growing popularity of spirits-based canned cocktails and innovative collaborations is reshaping the beverage landscape, offering consumers new and exciting ways to enjoy their favorite drinks.
