How can convenience stores grow their RTD (ready-to-drink) cocktail sales?
The answer is simple:
A: Stock them because they are popular beverages that shoppers have come to expect to find at c-stores. Make sure there is a good variety, since consumers love choices, and feature some limited-time items.
B: Know what’s selling, which is as easy as checking recent sales figures. The RTD canned cocktail market is estimated to increase from $18.8 billion this year to $33.2 billion by 2030, according to research firm Future Market Insights. In fact, they are expected to account for 53.4% of demand in the global RTD business, projected to reach $19 billion by the end of this year. RTD canned cocktails are expected to operate at a 6% compound annual growth rate from 2023 to 2033, according to projections.
Also, don’t minimize the importance of those incremental sales gains. Convenience store operators are increasingly turning to ready-to-drink spirits to help offset diminishing returns in areas such as traditional beer, as well as increased regulatory pressures and higher excise taxes.
C: Merchandise and cross-merchandise the cocktails effectively so that consumers inside the store will notice and be drawn to them. The drinks are part of what many social commentators are referring to as the “cocktail at home” trend. There are also more premium options available than ever before.
D: Advertise them to gain the attention of consumers who are not inside the store but can be brought in by the right product and offer. This includes print ads, window signage, pump toppers and social media.
E: Promote them, since promotions are enticements and everyone likes to be enticed and save money.
F: Have store staffers talk the cocktails up. Suggestive selling is a proven way of driving impulse sales. Talking points include the explosion of exciting flavors, their convenience and their affordability.
G: Educate consumers about the RTD cocktails’ health benefits. Several brands are offering products with reduced carbs and sugar, as well as natural ingredients. One recent rollout contains only 100 calories per 12-ounce can, making it part of the so-called “skinny” margarita trend, which has show solid growth.