Australia’s hospitality scene is witnessing a significant shift in consumer preferences, and one of the key drivers of this transformation is the rise of Ready-to-Drink (RTD) cocktails. Leading the charge is Australian Venue Co. (AVC), one of the country’s largest hospitality groups, which has introduced draught RTD cocktails in a number of its establishments. This move signals a broader trend in the industry, with RTDs gaining popularity and reshaping the way Aussies enjoy their drinks.
The Evolution of the Beverage Experience
AVC’s decision to replace a portion of its beer taps with draught RTD cocktails in 11 of its over 200 venues is not just a tactical choice but a response to evolving customer demands. With drinks like Espresso Martinis, Negronis, Margaritas, and Fruit Tingles now flowing on tap, AVC aims to offer quicker service and consistent quality to its patrons. This change highlights a growing trend: consumers are increasingly seeking convenience without compromising on quality.
Paul Waterson, the CEO of AVC, emphasized that this move was largely driven by customer feedback and the rapid growth of the RTD market. He noted, “We’ve seen an undeniable shift in what people want when they come to our venues. They’re after innovation, convenience, and exciting new tastes. Draught RTDs tick all those boxes.”
RTDs: A Global Phenomenon
The introduction of draught RTDs by AVC is a clear indication of the RTD category’s growing influence worldwide. According to a recent RTD Strategic Study by IWSR, the RTD market has seen a 2% growth in the top 10 global markets, with particularly strong performances in Mexico (+8%) and Germany (+4%).
RTDs have proven particularly popular among younger consumers who value both convenience and quality. In Australia, this category has evolved beyond the traditional pre-mixed spirit and mixer drinks to include more sophisticated and craft-inspired cocktails. These beverages, once reserved for professional bartenders, are now becoming more accessible and are appealing to a wider demographic.
Why Draught RTDs Are Changing the Game
One of the biggest draws of draught RTDs is their ability to provide a quick and high-quality drinking experience. Traditionally, customers would need to wait for bartenders to mix cocktails, but with draught RTDs, these drinks are ready to serve in seconds. This aligns perfectly with the growing demand for speed and convenience in hospitality venues.
Moreover, draught RTDs offer a level of consistency that’s hard to achieve with individually mixed cocktails. Each glass of a draught RTD is the same as the last, ensuring a reliable taste experience for customers, which is crucial for venues seeking to maintain a high standard of service.
The Decline of Beer and the Rise of Innovative Alternatives
The rise of RTDs has coincided with a notable decline in beer consumption in Australia. A recent report by Canvas8 revealed that beer consumption dropped by 5.5% over the past few years, with only 32.5% of Australians drinking beer. This shift suggests that beer, while still a popular choice, is increasingly being overshadowed by other beverages that offer more flavor variety, lower alcohol content, and innovative profiles.
Younger drinkers, in particular, are embracing this trend. They are more likely to opt for diverse, flavor-forward options that suit their changing preferences. This demographic is moving away from traditional beer and gravitating toward refreshing RTDs, which offer a wide array of exciting flavors and alcohol options.
Sustainability and the Environmental Impact
The introduction of pre-batched RTDs also aligns with a growing environmental consciousness among consumers. One of the significant benefits of draught RTDs is that they generate less waste compared to individual bottles or cans. With many consumers and businesses becoming increasingly aware of their environmental footprint, this shift could serve as a blueprint for more sustainable practices in the hospitality industry.
By serving cocktails from kegs, AVC is reducing packaging waste and helping to minimize the environmental impact of its operations. This not only appeals to eco-conscious customers but also sets a positive example for the industry as a whole.
Looking Ahead: A Sign of Things to Come
As AVC’s shift to draught RTDs continues to gain traction, other hospitality groups are likely to follow suit. This move reflects a larger industry trend that is driven by the desire for innovation, convenience, and sustainability. With the RTD market poised to grow even further in the coming years, it’s clear that this shift is not just a passing fad but a transformation in the way Australians approach drinking.
The success of draught RTDs could very well pave the way for more diverse and innovative offerings in the beverage industry, as consumers continue to demand new experiences. For those in the hospitality sector, embracing this change might be key to staying ahead of the curve and meeting the evolving preferences of their customers.
In conclusion, the introduction of draught RTDs by AVC is more than just a business strategy—it’s a reflection of changing times in the Australian hospitality scene. As RTDs continue to rise in popularity, we can expect to see more creative solutions and sustainable practices that cater to an increasingly discerning and environmentally conscious customer base. The future of drinks is here, and it’s on tap.
