Opportunities flow for RTD cocktails in India

Bars and pubs have been largely kept out of the purview post-lockdown.

Though some pubs and bars in India are open, consumers may be skeptical about returning to such venues, which could create new opportunities in the spirit-based ready-to-drink (RTD) cocktails, which currently have limited exposure in India, according to a GlobalData report.

Many public places reopened in India after nearly two and a half months of strict lockdown, but bars and pubs have been largely kept out of the purview of Unlock 1.0. Against this backdrop, the report noted that the existing alcohol brands can capitalise on this cautionary behaviour and create a new target audience.

Currently, the spirits market is set to decline by 14.04% over 2019-2020, though it was predicted to grow by 5.46% before COVID-19, and much of this will be tied to a lack of on-trade sales. However, manufacturers may be able to offset this somewhat by targeting the at-home consumption occasions with new RTD cocktails.

“The existence of RTD cocktails can recreate a party-atmosphere at home for those consumers who prefer to only interact with a select group of known people, rather than going to pubs where one will be in close proximity to strangers,” Shubham Mahajan, consumer analyst at GlobalData, commented.

Presently in India, apart from fruit-flavored breezers, there have not yet been brands that offer RTD cocktail options. This could provide opportunities for brands to not just provide flavors associated with foodservice at home but also to target those intending to lower their alcohol intake by opting for milder alcoholic drinks.

Although cocktail mixes are already available, the proportion in which the spirits should be added to recreate a pub-like flavor experience may not be always achievable.

“Preparing a variety of cocktails with different spirit-base also requires consumers to separately purchase multiple alcoholic beverages, which can be viewed as an additional task. Hence, RTD cocktails could provide a convenient solution offering diverse options for parties at home,” Mahajan added.