Pre-mixed drinks

Consumers are starting to really embrace the convenience of a pre-mixed drink in a portable format. Hamish Smith reports

Consumers are not bartenders. In the main they want their drinks to arrive with the minimum of fuss. Complicated serving rituals, measures and alcohol-to-mixer ratios involve input, effort and knowledge. Having it pre-mixed makes life easy. People like easy. So why has it taken the spirits world so long to realise this? Why only now, in the past few years of a few hundred-year-old spirits industry, is the pre-mixed can format being seriously embraced? 

Perhaps brand owners were waiting for perceptions to change – there was a time when pre-mixed products were considered cheap, naff, even damaging to brand equity. But in 2012, in the mainstream at least, pre-mixed is not only acceptable, for some customers in the US, UK, Australia and New Zealand it is preferred. 

‘Convenience occasions’ are multiplying as we become busier and lazier, and even in the home – the one place we might have the time and tools to self-open, mix and decant – consumers are now seeking the easier option. 

All this has meant growth for the sector – in 2011 it swelled 3.7% globally – and further expansion is expected at least until 2016 (Euromonitor International). Driving growth seems to be cans, party pouches and kegs, rather than the old-style RTD bottle that sparked the first Smirnoff Ice/Bacardi Breezer/Reef wave of the mid-90s. 

Mimicking bar calls

Today’s pre-mixes tend to mimic punters’ bar calls. Scan a UK supermarket drinks shelf and you’ll likely find Captain & Cola, Bacardi & Cola, Smirnoff & Cola, and Gordon’s & Schweppes Tonic. This mirroring of bar calls creates a circle of consumerism that must make marketers very happy. A brand’s signature serve is taught in the on-trade and reinforced in the off-trade. Consumers are almost programmed through word association.  

Of course, the pre-mixed can is not new, but the format has only recently gained real traction. According to the UK’s First Drinks, pre-mixed volume  was up 28.2% to 43.1m units in the UK in the past 12 months, with value now at £70.1m – a 29% increase year on year. 

All-purpose appeal

According to many brands, growth is due to the pre-mixed can’s all-purpose appeal. “The convenience factor of premix brands makes them ideal for at-home occasions as they are a great option for those that do not have the skill set, time or facilities to create mixed drinks from scratch at home,” says David Irwin, director of convenience & wholesale, Bacardi Brown-Forman Brands. He says Jack Daniels is now the number two pre-mix in the UK off-trade and grew 37.8% in value in the year to date.  

Along with Jack Daniel’s cans there are lazy serves of Jim Beam, Canada Club, Jägermeister, Bell’s, Grant’s, Greenall’s, Pimm’s, Archers, The Famous Grouse, Three Barrels, Southern Comfort  – in fact, it might be easier to list the mainstream brands that don’t have a pre-mixed version. 

Spirit brands are finding the format has many benefits, not least the ability to transfer drinkers from pre-mixed into spirits proper. “Grant’s RTDs were launched as a recruitment vehicle to encourage younger buyers into a typically older category,” says Oliver Dickson, senior brand manager for Grant’s at First Drinks. “As a result, we have seen that, through trial of the RTDs, around 20% of buyers who had never bought Grant’s before have gone on to purchase the master brand, Grant’s Family Reserve.”

For many consumers, the convenience occasion is still the domain of the beer can. But by tapping into beer time, spirit brands can recruit new consumers. Enrique Comas, global brand manager at Bacardi picks up the point: “There are times when consumers are looking for something that retains the convenience of beer but delivers more sophistication.” Bacardi now sells its RTDs across 61 countries and five continents, with a range focused on “the most popular Bacardi rum drink combinations”.

Wrapped up in the concept of convenience is a lot of compromise, but brands still have to be careful their spin-offs are of the requisite quality. The choice of mixer can make or break a pre-mix. Some go branded – like Gordon’s & Schweppes – some buy it in, others create their own. 

Joanne Moore, master distiller at G&J Greenall Distillery – which offers Gin & Tonic, Gin & Diet Tonic, Gin & Grapefruit, Gin Fizz, Gin Sin and Gin & Bitter Lemon (Scandinavia only) – knows a bit about selecting mixers. “I go to a lot of time and effort to get the gin right so it’s important to match the mixer with the gin – just as a mixologist would. With pre-mixed drinks you have to make sure you keep it simple, keep it elegant. Certain flavours work in a can, such as natural citrus juice. A Mojito, for instance, does not work.” 

Naturally, some brands take a more pragmatic view, opting for cheaper synthetic flavours, but this is not good for the category, says Moore. “I always use natural flavours – but putting natural juice in products does make it more expensive. Synthetic colours and flavours derived from a laboratory are cheaper, and sugar is also more expensive than sodium saccharine and aspartame.”

And what about the tonic? To a G&T drinker, it can be as important as the gin itself. “Our tonic is bespoke – it’s not a copy of Schweppes or anything else,” says Moore. 

Brand enhancers

But wouldn’t having Schweppes or Fever Tree in the can enhance the brand? “A co-brand can make the consumer feel more comfortable, but I don’t think not having it harms the brand.” Moore, in fact, seems so happy with her tonic she doesn’t rule out Greenall’s launching it as a standalone brand. 

At Grant’s, where Cott supplies the cola, bubbles are key. “The carbonation of the Grant’s cola is higher than other brands, which is why in blind taste tests against key competition, Grant’s was ranked number one,” says Dickson. 

At Bacardi, mixers are made in-house by Bacardi Martini New Product Development in Jacksonville, in the US. “By developing the flavour profile for the cola mixer used to make Bacardi & Cola RTD in-house it is possible to adapt this flavour profile to meet the specific taste palates of the local market,” says Comas. 

Localised tastes

Localised tastes can require a local strategy. In recent years Australia and New Zealand, where around 10% of global RTD volume is consumed (Euromonitor International), have emerged as two of the biggest markets for RTDS. This August saw the launch of Jägermeister’s first foray into pre-mixed cans with Jägermeister Raw (which includes guarana extract) and Jägermeister Ginger Lime, exclusively to the Australian market. Suntory Australia, which distributes the brand, seems to have plans to unseat Jägermeister from its usual bar stool and take it to the “home, parties and barbecues”.  

Beam has also been watching Australia closely. In September it launched Jim Beam and Canadian Club in keg format, hoping the 5-litre “sharing kegs” would be a hit at summer barbecues and parties. 

“The 5-litre party kegs are an exciting new way for people to enjoy their favourite pre-mixed spirit with a bunch of mates, while the innovative pressurised format ensures the mix stays fresh and bubbly for up to 30 days in the fridge. A great, fun alternative to a case of premium beer,” says Ray Noble, brand director, bourbon, at Beam Global Australia.

Grant’s, meanwhile, is eyeing expansion from the UK. “RTDs are well established in markets such as Australia and New Zealand so these may also be key markets in which Grant’s will look to expand,” says Dickson.  

Perhaps we shouldn’t be surprised at the popularity and spread of the new wave of pre-mixed drinks. The trend has long been towards reducing consumer exertion. Perhaps one day the pulling of a ring or manual lifting of a can will be too much of an effort. The brand that makes life easiest for the mainstream consumer will surely do well. Because whatever the format of the day, convenience sells.