Cognac and whiskey brands are increasingly investing in ready-to-serve (RTS) and ready-to-drink (RTD) cocktails as a strategy to boost sales amidst a challenging market for traditional spirits. Hennessy, for example, saw its US sales from distributors to retailers drop 9% to 2.92 million cases last year, down significantly from 5.13 million in 2020. In response, Hennessy launched "Hennessy Very Special Cocktails" in the US, marking the first time in its nearly three-century history that it has sold a product combining cognac with other ingredients. This initiative aims to appeal to younger consumers, as premade cocktails often have lower alcohol content.
Brown-Forman, the parent company of Jack Daniel's, also highlighted the strength of its RTD portfolio, which saw a 20% increase in reported sales and an 11% increase organically in the first quarter of fiscal 2027. This growth, particularly from its tequila-based RTD brand New Mix (up 48% reported, 36% organically), helped offset flat whiskey sales and a 1% decline in overall net sales to $911 million. Brown-Forman's CEO, Lawson Whiting, emphasized that innovation, including RTDs, is crucial for growth in a tough operating environment.
Analysts like Jeremy Bowman from The Motley Fool noted that while Brown-Forman's traditional business faces headwinds, the success of its RTD segment demonstrates the company's ability to innovate and meet consumers where they are. Overall alcohol consumption in the United States fell 5% last year, but sales of spirits-based bottled cocktails rose 14%, according to trade group IWSR. This trend underscores why major spirits players are diversifying into the RTD category to find new avenues for growth and engage new audiences.
