By: Kris Bohm: Owner of Distillery Now Consulting LLC.
Canned cocktails are the largest growing category in sales of spirits in the past 4 years. Canned Cocktails also known as RTDs (Ready to drink cocktails) are hot right now! The sale of drinks classified as RTDs grew 24% from 2022 to 2023. (Neilson) There are many ways to create canned cocktails and an abundance of variety in flavors of canned cocktails.
Starting with a product concept all the way to creating a finished product is an immense and difficult adventure but well worth the work, when done right. This article will discuss in detail one particular way of producing RTDs and cover all aspects of creation and manufacturing. Along the way I’ll also share the lessons learned from launching ready to drink cocktails. Let’s learn about canned cocktails!
As a beverage alcohol producer if you are struggling to grow it may be time to go on the lookout for the next trend in beverages to grow your business. If growth is a good measure of new trends then RTDs are the answer. When distilleries first started producing RTDs several years ago there was a sense of uncertainty as to whether RTDS would be a short lived trend. This uncertainty came from several places. There were horror stories of recalled products from cans exploding (Trust me i was there). Distributors said the price point was too high for canned cocktails compared to beer and retailers were not willing to give RTDs space on their shelves.
Flash forward to today and canned cocktails are thriving and selling at a much higher price point per unit than beer. Now we do not want you to have to recall a product or having exploding cans so before you jump right into making your own RTDs let’s talk about how to develop a product.
When it comes to manufacturing RTDs there are hundreds of aspects that must be given consideration in preparation to create a successful product. If your goal is creating an RTD then start first with answering all the questions we have outlined before you commercially package your product. Below is a list of canned questions that you should answer.
• What type of cocktail do you want your RTD to taste like?
• How boozy do you want it to be?
• Is the product highly carbonated, lightly carbonated or noncarbonated?
• What ingredients will be utilized to flavor the RTD?
• If the product is sweetened what kind of sweetener will you use?
• Will you use juice or other natural ingredients and are they readily available?
• Is the formula for the product shelf stable?
• How long will the product last before it expires?
• Is refrigeration needed to store the packaged product?
• How will the product be branded and marketed?
It is essential to answer these questions before you get ahead of things and package a product. RTDs are not the same as beer or distilled spirits. It is essential to be diligent and give careful consideration to the product formula, flavor, cost, packaging process and shelf life before a product is released. Spending a considerable amount of time in product development and quality assurance testing will save you money and headaches. Good product development can avoid problems as your project moves from concept to a finished ready to drink product.
One of the critical steps in product development is selection of the packaging itself. Once a product formula is developed one must give consideration to the container the product will go into. Whether canning boxing or bottling selection of the packaging and material the packaging is made from is key. The package will dictate the equipment needed, the label on the package and many other factors that will require big expensive decisions. Cans are the most common and affordable choice for packaging. Cans come in a variety of sizes, shapes and different liner types. A second option for packaging a product is aluminum bottles. Aluminum bottles cost more than cans but they are unique and can provide differentiation to stand out in the vast sea of canned beverages. The actual volume of the packaging must be selected early, as part of the TTB formula and label approval process must include this information.
There are a multitude of options for packaging, it is essential to make sure the container and the equipment are suitable for a product before you buy those items and start manufacturing products.
When it comes to making an RTD one of the biggest expenses is the packaging line. This is the equipment that rinses, fills and seals the containers holding your product. If you do not already have a canning or bottling line there are numerous vendors who build equipment for packaging RTDs. Lets cover the key components of equipment that are must have tools to take distilled spirits and transform them into canned cocktails. Below we will discuss all the equipment and steps needed to produce a carbonated canned vodka soda.
The first essential tool is water filtration. A water filter critical to produce clean and sterile water that tastes good. Water which will make up the largest ingredient in an RTD so it must have excellent flavor and a water filter will help control the flavor.
The second tool needed is a brite tank and a chiller. The brite tank is used to store the product before it is packaged. The chiller provides the cooling capacity to reduce the temperature of the product down to ideal carbonation temperature in the brite tank.
To carbonate a beverage effectively it must be cold, once the product is cold carbon dioxide is added to create carbonation. From the brite tank the product is transferred to a packaging line to be put into cans or bottles. A packaging line is a complex piece of equipment that handles the movement of the liquid and packages in sequence to clean the package, purge it to remove oxygen, fill with liquid, then place a lid or cap on the package and then seal it.
Packaging lines can vary in speed from producing a few units per minute to hundreds of units per minute. Selecting the right packaging equipment first requires that the packaging be selected and tested, only then can the packaging line be picked out.
If buying a full set of packing equipment is not the right step for you there are alternative options to consider for producing RTDs. The alternative path to producing a RTD is to partner with mobile canning companies that can package your product for you. Throughout North America there are several companies who offer mobile canning services.
A mobile canner will come to your facility with all of the equipment needed to quickly and efficiently package your RTD. Mobile canning is an excellent route to take if your business is looking to test out a concept but might not have the space and or resources to install packaging equipment. When working with a mobile canner it is critical to still put a product through quality assurance testing before packaging and selling the product. It is important to note that with mobile canning it can add significant cost per unit and consideration in how the product is priced will play a role in working with a mobile canner.
The upside of utilizing mobile canning is reduced initial investment. With a mobile canner there is no major capital investment in equipment required to get started which means you can start canning cocktails sooner rather than later, with less money invested.
There are many reasons RTDs are taking the market by storm.Consumers have become more health conscious of what they drink and low calorie spirit based drinks fit that bill. RTDs are convenient and the perfect choice for those who want an easily accessible drink alternative to beer or wine. RTDs are far more portable than glass bottles and the accessories needed to make cocktails. Creating canned cocktails and selling them can be a challenging endeavor.
Without question there is strong potential for your RTD to succeed if done well. Developing a successful RTD will certainly be a challenging and serious project but with good equipment and knowledgeable people your concept can be brought to life. Sales of canned cocktails are growing tremendously year over year.
Take the leap and join the revolution by producing your very own RTD. Canned cocktails are opening doors to serve cocktails in places that spirits cannot be found and a RTD can become the key product to grow your beverage business.
Kris Bohm is the owner of Distillery Now Consulting where he is the head unicorn wrangler. Bohm has also developed some mighty tasty and successful RTDs. He can be reached at distillerynow@gmail.com
