Rtds in the United Kingdom

2020 IMPACT

RTDs avoids decline due to already high off-trade sales

RTDs was also negatively impacted on-trade in 2020, with sales showing a significant volume decline. The temporary closure of foodservice outlets due to COVID-19 led sales to plummet, whilst on reopening after lockdown capacity restrictions were in place, which limited the potential for recovery.

New launches despite a difficult year, which helps drive growth

Despite 2020 being an atypical year, the emergence of new products played an important role in RTDs in this year. Big brands came in strong with new product launches, such as Kopparberg with its new rum & cola variant, and Diageo with its new SKUs, Gordon’s Pink Martini and Smirnoff Passion Fruit Martini, which were both launched in October 2020.

Beverage Brands maintains its lead thanks to recent new launches

Beverage Brands (UK) maintained its lead in RTDs with its WKD brand in total volume terms in 2020. It also managed to extend its share in this year, which was a better performance than any of the other major players in RTDs.

RECOVERY AND OPPORTUNITIES

Total volume growth set to be maintained as both channels see increases

The pandemic played in favour of the RTDs category, which managed to see strong total volume growth in 2020. In addition, sales are not set to fall back in 2021, with strong growth rates expected to continue for the rest of the forecast period.

Hard seltzers likely to see a surge in sales as they have lower sugar and calories

One of the main trends expected to be seen in RTDs in 2021 and beyond is strong growth for hard seltzers. As people are becoming even more aware about their health and what they consume, hard seltzers are likely to be seen as a suitable option, as they have lower levels of sugar and calories in comparison with other alcoholic drinks.

Sustainable and natural products likely to be launched and favoured

Consumers’ higher concern for environmental issues will play an important role in the RTDs category in the forecast period, as brands will more commonly apply sustainable practices. For instance, the launch of the new hard seltzer brand Served, which claims that its product is made using sustainably sourced fruit, is just an example of what will be seen more frequently over the coming years.