cnbc.com
Ready-to-Drink Spirits Sales Surge 25% in 2023
Ready-to-drink spirits sales in the U.S. surged 25% in 2023 to 62 million cases, driven by consumer shifts away from saturated malt-based drinks and fueled by major players like Gallo and Anheuser-Busch InBev; however, stock prices of major companies haven't reflected this growth.
- What is the overall market impact of the 25% increase in ready-to-drink spirits consumption in 2023?
- Americans consumed 62 million cases of ready-to-drink spirits in 2023, a 25% increase from 2022. This surge makes it the second-largest spirits category, exceeding the growth of malt-based drinks which fell 8% from 2021 to 2023.
- How did the market saturation of malt-based beverages contribute to the rise of spirits-based ready-to-drink cocktails?
- The shift from malt-based drinks to spirits-based ready-to-drink cocktails reflects consumer preference changes and market saturation. Three brands control over half the market, highlighting industry consolidation. Major players like Gallo and Anheuser-Busch InBev are investing in this growing segment.
- What are the long-term implications of major beverage companies' limited stock price increases despite the exponential growth of the beyond-beer segment?
- The spirits-based ready-to-drink market's growth signifies a significant change in the alcoholic beverage landscape. Despite this growth, major beverage companies' stock prices haven't reflected the success of this segment, indicating potential future market adjustments or untapped opportunities.
Cognitive Concepts
Framing Bias
The article frames the growth of canned cocktails in a largely positive light, highlighting the significant market expansion and the involvement of major players like Gallo and Anheuser-Busch InBev. The inclusion of quotes from industry analysts further reinforces this positive outlook. While the challenges of market saturation are mentioned, this is presented as a past problem overcome by the shift to spirits-based drinks. This framing could lead readers to overlook potential downsides or future challenges of this rapidly growing market.
Language Bias
The language used is largely neutral and factual, using descriptive terms like "significant growth" or "market share." However, phrases such as "took the U.S. by storm" could be considered slightly hyperbolic, though not severely loaded. Overall, the tone is informative rather than opinionated.
Bias by Omission
The article focuses heavily on market share and growth of canned cocktails, particularly the success of major players like High Noon, Cutwater, and Nutrl. However, it omits discussion of smaller craft canned cocktail brands and their contributions to the market. Additionally, the article doesn't explore the potential negative consequences of the increased consumption of ready-to-drink alcoholic beverages, such as public health concerns or environmental impacts from increased packaging waste. While acknowledging space constraints is reasonable, the omission of these perspectives limits the overall understanding of the market and its broader implications.
False Dichotomy
The article presents a somewhat simplified view of the market by primarily contrasting malt-based drinks (seltzers) with spirits-based ready-to-drink cocktails. While this is a significant shift, it overlooks other ready-to-drink options and nuances within the alcoholic beverage market. For example, it doesn't address the growth of other types of ready-to-drink beverages or the presence of wine-based options. This oversimplification might lead readers to believe the market is solely defined by these two categories.
Gender Bias
The article does not exhibit any overt gender bias in its language or representation. The sources quoted are primarily men, which could reflect the industry demographics but warrants consideration for future reporting to include diverse voices.
Sustainable Development Goals
The article highlights the rapid growth and market saturation in the ready-to-drink alcoholic beverage sector, leading to potential negative consequences such as increased alcohol consumption and waste. The focus on new flavors and brand proliferation might also contribute to unsustainable practices.