Beam Suntory Shakes Up RTD Market with On The Rocks and New Innovations
Beam Suntory’s bottled cocktail brand, On The Rocks (OTR), has seen impressive growth, surpassing 600,000 nine-litre cases this year, as noted by Heather Boyd, who took over as managing director for Beam Suntory’s RTD business in the US in January 2021.
US-Based Brand’s Origins and Partnerships
OTR, acquired by Beam Suntory in September 2020, was born from the realms of travel, leisure, and hospitality and fostered through collaborations with airlines. Boyd emphasized its increasing consumer base, especially among travelers who later seek out OTR at home.
With primary availability in the US and Canada, the brand has forged notable partnerships, including the Marriott hotel chain and Southwest Airlines, featuring its bottled Margarita. Boyd foresees further expansion in the travel and leisure sector.
Innovative Products and Premium Segment Leadership
OTR has pioneered the premium-plus bottled segment, growing at a double-digit rate and outpacing the overall spirits category. Recent limited-edition launches like the Midori Sour and White Negroni made with Sipsmith gin have capitalized on market trends, introducing consumers to novel flavors.
Upcoming Launches and Long-Term Vision
OTR plans to introduce a Blue Hawaiian RTD, a tropical concoction using Beam Suntory’s Cruzan rum, in line with its vision to lead the RTD segment with innovative and quality products.
Partnership with Jennifer Lopez and Expansion Plans
Beam Suntory’s partnership extends beyond OTR. The company has invested in DeLola, a premium spirits-based bottled cocktail brand developed by Jennifer Lopez, emphasizing health-conscious, low-sugar options. Lopez played a hands-on role in developing the product, aligning with her lifestyle and preferences.
Furthermore, Beam Suntory is set to expand the distribution of Suntory’s Japanese RTD brand -196 in the US, following its success in Japan and Australia.
Exploring New Formats and Markets
While focusing on bottled cocktails, Boyd hinted at expanding into the canned RTD space, considering consumer preferences and market trends.
Beam Suntory also partnered with The Boston Beer Company to launch Jim Beam Kentucky Coolers, aiming to make whiskey more approachable to a broader audience.
Beam Suntory’s RTD Business: A Global Perspective
With a specific focus on the US, the top RTD market globally, and other significant markets like Canada and Germany, Beam Suntory is positioning itself as a leader in the evolving RTD segment.
