Rtds in Ukraine

2020 IMPACT

Double-whammy as both on- and off-trade sales dip during lockdown

The RTDs category suffered heavy on-trade losses in 2020 owing to the lockdown as well as subsequent decreasing purchasing power among the target audience (mainly young people). Off-trade sales were unable to compensate for the closures of pubs, bars and cafés as there was no migration to retail RTDs among consumers, many of whom associate the beverage with socialising.

Social media being harnessed to promote RTD brands

Although health and wellness trends had not yet led to a significant interest or uptake in low- or no-alcohol variants in Ukraine in 2020, it is expected that this future trend will largely be driven by younger adult consumers. This can also benefit RTDs, as pre-mixed drinks are typically weaker in alcohol content than mixed drinks made at home, or cocktails prepared in bars and restaurants.

Novi has that Friday feeling

Novi Produkty maintained its strong leadership in 2020, and is strengthening its position further through innovation. It has a new malt-based brand in RTDs called Friday, which has a “beer lemonade” positioning for a youthful audience.

RECOVERY AND OPPORTUNITIES

Strengthening competition to limit growth of RTDs

While overall growth is predicted for RTDs over the forecast period, it will be low and total volume sales are expected to remain in decline in 2021 even though the on-trade should begin to recover. Competition between RTDs, flavoured beer, cider and even sparkling wine (such as Fragolino in metal cans) will become stronger in the forecast period.

Bounce-back for retail unlikely to begin before 2022

RTDs benefits from good price positioning, as compared with the main rival categories of beer and cider. Indeed, RTDs are more targeted at off-trade occasions, as higher-income consumers used to opt for cocktail bars as opposed to purchasing ready-made alcoholic mixes.

Maintaining affordability and interest among younger consumers key to recovery

Overall, RTDs shows decent scope for recovery over the forecast period; however, in order to succeed, players should keep following the trends that drove growth in the RTDs segment before the health crisis. Specifically, this refers to ongoing innovation in new flavours and formats; a good price-quality ratio which makes buying RTDs affordable for price-sensitive consumers; and promotion through social media channels to continue to reach the target audience.