The RTDs category is likely to continue to face significant competition from multiple categories in the forecast period. Amongst the strongest competitors will be shochu/soju, cider and flavoured/mixed lager, which are all comprised of products that are primarily on the sweet side and, therefore, target similar consumer profiles and go head-to-head with RTDs.
New product developments in RTDs could include products with a lower ABV, lighter and more refreshing formulations, or even the use of local ingredients. Products which copy popular cocktail trends or which use trendy ingredients could also find favour.
RTDs’ key target consumers are rather price sensitive and, given the climate of economic uncertainty at the beginning of the forecast period, it is expected that promotional campaigns will be an important element of companies’ strategies as they seek to remain competitive in the market. Leading players in the market, such as Orang Tua Group, have already implemented policies such as bundling with other products from their portfolios with the aim of supporting the development of their RTDs brands.
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RTDs
RTD stands for ‘ready-to-drink’. Other terms which may be used for these products are FABs, alcopops and premixes. The RTDs sector is the aggregation of malt-, wine-, spirit- and other types of premixed drinks. These drinks usually have an alcohol content of around 5% but this can reach as high as 10% ABV. Premixes containing a high percentage of alcohol of around 15%+ combined with juice or any other soft drink are included here. RTDs are usually marketed as products to be drunk neat, with ice, or as a cocktail ingredient. Fruit-flavoured, vodka-based spirits with an alcohol content of between 16-21% are classified here. Examples: Alizé, Ursus Roter, Berentzen Fruchtige, Kleiner Feigling.
See All of Our DefinitionsThis report originates from Passport, our RTDs research and analysis database.
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