Dallas, TX: ReportsandReports announce Global ready-to-drink (RTD) and ready-to-serve (RTS) market review Market Research Report in its Store.
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The history of the ready-to-drink (RTD) sector is one of resilience and evolutionary mutation. Now the category is again showing signs of further reinvention with the move by the major spirits companies and independent labels into the pre-mixed or ready-to-serve (RTS) cocktail arena.
The great strength of the RTD and RTS sectors is that there is a broad spectrum of participants from the wine, brewing and spirits industries. This ensures a tremendous critical mass of investment around the category. Diageo remains the global RTD leader with around a 16% share of the market, down from 18% in 2005.
Many of the world’s top markets have been hit by the downturn, but are set to return to growth. The Australian RTD market was slammed in the middle of 2008 by a steep hike in the excise duty on RTDs. That led consumers to revert to bottled spirits in the second-half of 2008. The total Australian market unexpectedly came back to growth in 2009, up by 2.3% to reach 35.3m cases, and is forecast by The IWSR to rise by an additional 6.2% in volume terms in 2010.
What’s encouraging is the vast potential for RTDs in such emerging markets as Brazil, China, South Africa or India.
This latest report from IWSR/just-drinks provides a global review and analysis of the RTDs & RTS categories. With a complete data overview, interviews with the leading players and unique textual analysis explaining the reasons behind the numbers, this report is essential reading to anyone involved or affected by these innovative categories.
Beginning with an executive summary in Chapter 1, Chapter 2 Introduction sets the scene with an overview of the categories’ history up to the present day.
Chapter 3 Scope of the market
This chapter overviews the global market, providing consumption volumes for the top 10 markets, and the largest growing (and declining) markets.
Chapter 4 Industry structure
This chapter summarises the main players’ market share and latest (2009) consumption volumes.
Chapter 5 Development of the ready-to-serve (RTS) market
In the last year there has been a big increase in the amount of innovation around the RTS area. This has been marked by the arrival of new flavours and new packaging concepts. For instance, there are a couple of entries that are Bag-in-Box (BIB) format and Malibu has even launched an RTD in a pouch.
Bacardi Flavoured Rums brand director Gordon Chisholm says: “We are seeing a lot more activity and innovation going on within the RTS category, but it is a sizeable category and the view going forward is that it will continue to grow as people choose to introduce and add new innovations.”
Chapter 6 Impact on the parent brand
In the early days of RTDs marketers were concerned that they might cannibalise sales of the full-strength parent brand. There was also the related question about the impact of RTDs on the brand equity of the parent brand. Yet the evidence today is that well-executed RTDs can enhance both the sales and image of the parent brand.
This chapter provides insight from the brand players and sales comparison data trending brands’ parent sales and RTD sales from 2005 to 2009.
Chapter 7 Greater segmentation
Halewood International marketing director Graham Oak believes that four sub-sectors have emerged within the RTD market – ‘crisp refreshment’ with brands such as Moscow Mule and Smirnoff Ice; fruit refreshment with Bacardi Breezer and Reef as examples; prepared cocktails and pre-mixed cans. He says: “Over the next 12 months we will see dramatic changes within the RTD category in terms of margin/value delivery, recruitment of new consumers driven by new formats and product innovation.”
Chapter 8 Markets
This chapter provides sales of main brands from 2005-2009 for all major world markets. Together with the data, the report analyses the findings and provides additional viewpoints from the leading brands. Regional volumes are also provided.
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