Canned Cocktails: The New Trend in the US Spirits Market
Canned cocktails are experiencing a surge in popularity, with Americans consuming over 62 million cases in 2023, a 25% increase from 2022. This category has become the second-largest spirit category by volume, following vodka. The rise of canned cocktails can be attributed to the success of brands like White Claw, which launched in 2016 and offered an alternative to light beer. However, the market became oversaturated, leading to consumer confusion and a decline in sales.
The shift towards canned cocktails is driven by the growth of spirits-based drinks, which have increased their market share by 8% since 2021. In contrast, malt-based drinks have seen an 8% decline in share. According to Euromonitor International, the massification of flavors and branding initiatives led to a devaluation of the core proposition of brands, causing consumers to reevaluate their choices.
The US ready-to-drink spirits market is dominated by three major players: High Noon, Cutwater, and Nutrl. High Noon is owned by Gallo, a winery that also owns brands like Barefoot and Andre, while Cutwater and Nutrl are owned by Anheuser Busch InBev. Despite the growth of the beyond-beer segment, which includes malt- and spirits-based beverages, it still accounts for less than 5% of AB InBev’s US sales and 7% of Molson Coors’ sales.
Analysts have noted that the beer giants have not participated significantly in the growth of the spirits market, with stock prices remaining relatively stagnant over the past few years. This has left room for other companies to enter the market, including Coca-Cola, which has partnered with Brown-Forman’s Jack Daniels to create a canned version of a classic bar drink.
The success of canned cocktails has led to a growing trend in the US spirits market, with a five- to seven-year growth rate that has been exponential. As the market continues to evolve, it will be interesting to see how the major players adapt and compete for market share.
