Long confined to beers and sodas 🧃, the single serve format is now a demonstrated global trend in the spirits and no/lo categories. Here’s what we’ve learned from investing in rising #RTD brands as the VC arm of Pernod Ricard:
💹 Global RTD volumes doubled between 2015 and 2022, with an 11% CAGR. The category is expected to grow by +12% in volume between 2022 and 2027, hitting $40bn by 2027 across 10 key markets.
🏬 RTDs perform particularly well off-trade, in retail spaces. The convenience factor continues to be a major driver, with consumers appreciating the ease of enjoying premium cocktails without the need to purchase numerous ingredients. Retailers treat the trend with serious anticipation.
🍹 RTDs offer the ideal solution for consumer experimentation with no/lo drinks: consumers try both categories without spending too much and then potentially come back for full bottles of their favorite spirit (standard or no/lo).
🐘 Key to growth is a strong distribution game, with great partners (like Pernod Ricard New Zealand and AF Drinks), focusing on unlocking doors to regional & national chains (Whole Foods, Target) and online sales from specialized stores (Boisson) to Amazon.
We’re really proud of our investment portfolio in the industry, mostly focused on no/lo:
Liquid Death: a fun, premium canned water brand that has expanded to flavored sparkling water, iced tea & electrolytes. Focused on health and sustainability with aluminum packaging, they’re known for their bold marketing campaigns and branding.
Ghia: A non-alcoholic Aperitif and RTD brand inspired by Mediterranean aperitivo culture, and made with natural botanical extracts, no artificial flavors and no added sugars.
AF Drinks: A New Zealand-based non-alcoholic RTD brand making sophisticated non-alc versions of classic cocktails, mimicking the warmth and feel of alcohol with their signature “Afterglow”.
Sanzo: The first Asian-inspired beverage brand selling unique, culturally authentic flavors of sparkling water made with real fruit and no added sugar.
Djuce Wines: A Sweden-based premium wine, focused on sustainability by ditching glass for aluminum cans covered in beautiful art, targeting Gen Z and Millennials. They recently launched in the US.
Enroot: A certified B Corp for its social and environmental responsibility, Enroot is a premium organic sparkling cold brew tea brand crafted with James Beard chefs and co-founded by Brad Pitt.
Agua Bonita: The first healthy, ready-to-drink agua fresca in the US, it is low-calorie, low-sugar, and is available in culturally authentic flavors.
#readytodrink #conviviality #drinks #nonalc #corporateventurecapital
