Alcohol Ready to Drink (RTDs) - UK - September 2009
While FABs (Flavoured Alcoholic beverages) grew the alcoholic RTD (Ready-to-drink) sector exponentially during the late 90s, the landscape of the alcoholic market has since led to their equally sharp decline. With furore over binge and underage drinking, they have found themselves, somewhat harshly, a scapegoat for wider societal problems, however, they have done little to challenge this label and appeal to a broader audience.
The alcohol market has changed dramatically since then. Concern about healthy lifestyles means that consumption is now on the decline, with the soft drinks market on the rise. There is also an ageing population – and one that is more likely to “grow old disgracefully”, meaning sales of alcohol are increasingly being driven by 45+ adults; there is also an increasing shift towards in-home drinking.
Pre-mixed spirits and cocktails have emerged recently but look set to capitalise on this changing market dynamic. Mintel’s research shows that they appeal to an older and more sophisticated target audience, and they can capitalise on the current popularity – but lack of knowledge of how to make - cocktails in particular.
What are the reasons behind the continuing rejection of the market and how can it be redeveloped?
How are brands competing in this market being positioned to avoid being tainted with the FABs brush?
Can improvements in quality drive consumption amongst an older group?
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