The Impact of Ready-to-Drink Cocktails: Are They a Threat to Bars?
A quick stroll through the aisles of any liquor store or grocery chain reveals a truth that would have been unthinkable a decade ago—ready-to-drink (RTD) cocktails are everywhere. From craft distilleries to major spirit brands, everyone seems to be cashing in on the convenience factor, offering premium cocktails in sleek cans and bottles.
But does the growing popularity of these pre-mixed drinks signal trouble for traditional bars? Or are they simply carving out a new niche in the beverage world? Let’s explore the debate.
The Rise of RTD Cocktails
Once dismissed as overly sweet, mass-produced concoctions, RTD cocktails have evolved into a legitimate category with serious craftsmanship behind them. Brands are now infusing them with high-quality spirits, natural ingredients, and sophisticated flavors. Unlike the sugary malt-based options of the past, today’s versions boast well-balanced profiles, often created by actual bartenders.
The appeal is obvious: convenience, affordability, and consistency. Consumers no longer have to wait for a mixologist to craft their favorite cocktail—they can crack open a well-made Negroni or Espresso Martini at home, at the park, or at a party.
But as these products gain traction, the hospitality industry is left asking: What does this mean for bars?
JOE LINGEMAN
Are RTDs Taking Business Away?
For bars that rely on traditional drink sales, the explosion of RTD cocktails poses an undeniable challenge. If people can get a high-quality drink from their fridge for half the price of one at a bar, why bother going out?
Some bartenders argue that the experience of a well-crafted drink goes beyond taste—it’s about the artistry, the presentation, and the atmosphere. But with inflation tightening wallets, some customers are opting to stay home rather than spend $15+ per cocktail.
The issue goes deeper when considering how these pre-packaged drinks are infiltrating once-exclusive spaces. Concert venues, sports arenas, and even fine-dining establishments are now stocking RTDs, cutting into the profit margins of traditional cocktail programs. With brands taking up bar shelf space, some establishments are facing tough decisions about what to carry.
The Flip Side: A New Revenue Stream
Before ringing the alarm bells, let’s consider the other side of the coin. RTD cocktails may be a challenge, but they also present an opportunity.
Savvy bar owners are seeing them as an extension of their brand rather than competition. Some are developing their own signature RTD lines, allowing guests to take home their favorite drinks. This approach not only drives revenue but also increases brand visibility outside of the bar setting.
Additionally, RTDs can ease service during high-volume events. Rather than waiting for a bartender to mix a fresh drink during peak hours, pre-made options can keep lines moving while ensuring consistency in quality.
Some bars are even partnering with RTD brands to offer exclusive collaborations, creating limited-edition cocktails that bridge the gap between convenience and mixology.
What This Means for Consumers
At the heart of the discussion is the changing role of the consumer. More than ever, drinkers are in the driver’s seat, influencing what’s stocked at bars, restaurants, and liquor stores.
If you love the craft of mixology, supporting your favorite bars by ordering handcrafted drinks (rather than just grabbing RTDs at the grocery store) is crucial. Tipping well, engaging with bartenders, and frequenting spots that prioritize fresh ingredients can help sustain the industry.
At the same time, if you enjoy RTDs, being selective about which brands you support makes a difference. Choosing options from small-batch distilleries and local bartenders over mass-produced corporate brands can help keep the artistry of cocktail-making alive.
What’s Next?
RTD cocktails aren’t going anywhere. Instead of fighting the trend, bars and brands must find ways to coexist. This means rethinking cocktail programs, embracing innovation, and leaning into the aspects of hospitality that can’t be canned—personalized service, creative presentation, and the undeniable magic of a perfectly mixed drink served just right.
HoCo: Supporting Hospitality in a Changing Industry
As the industry evolves, businesses need strategies that help them adapt while maintaining strong guest experiences. That’s where HoCo comes in. We specialize in crafting solutions that help bars, restaurants, and hospitality brands navigate change, stay ahead of trends, and create sustainable success.
