Rtds/High-Strength Premixes in Austria

PROSPECTS

Potential revival of RTDs/high-strength premixes through reduction of alcohol content

RTDs/high-strength premixes had a rather negative connotation in the past, as they were perceived as alcoholic drinks that attract young adolescents and many people argued these should be banned. Even though demand for such products prevailed due to the trend towards using such drinks by adults for mixing cocktails, many consumers refrained from spirit-based RTDs.

Strong popularity of Frizzante products benefits wine-based RTDs

In the declining category of RTDs/high-strength premixes, wine-based RTDs was the only area to post positive volume and value growth in 2017, profiting from growing popularity of the so-called Frizzante products. In 2014, the taxes on sparkling wine were reintroduced in Austria (after being abolished for many years).

More innovation in terms of flavour expected in wine-based RTDs

In 2017, two trends were noticeable in sparkling wine: stronger demand for alcohol-free Frizzante products as well as growing demand for vegan products – Frizzante products that feature no ingredients of animal origin whatsoever, either on the packaging or inside the packaging. Those trends are expected to keep growing over the forecast period.

COMPETITIVE LANDSCAPE

Big global players lead sales of RTDs/high-strength premixes

Bacardi-Martini Austria was positioned as the undisputed leader in RTDs/high-strength premixes in 2017, profiting strongly from its famous Eristoff subbrands like Ice, Red, Fire, Lime, Black and Flash and Bacardi sub-brands like Breezer, Cola and others. The company also marketed Jack Daniel's & Cola in Austria.

Private label should not be underestimated

The overall share of private label remained stable over the review period. Observing overall RTDs/high-strength premixes private label posted a rather moderate combined volume share.

Producers of wine-based RTDs expected to distribute through on-trade also

Wine-based RTDs, which is still a minor category compared to spirit-based RTDs, might see new developments in the future. In 2017 these products were only being sold in the off-trade since they are purchased as a cheaper alternative to sparkling wines and champagne.

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