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RTDs Are Reshaping the Beverage Industry: Here's What Emerging Brands Need to Know to Keep Up
June 17, 2025

The Ready to Drink (RTD) category has gone from niche to dominant in just a few years, and it shows no signs of slowing. According to recent data from S and D Insights, RTDs now make up 22.7 percent of all spirits volume in the U.S. That number was just 5.1 percent in 2020. By the end of this year, analysts expect it to cross the 25 percent threshold.

For any founder launching a beverage brand, especially in spirits, flavored malt, or hybrid categories, this is not just a trend. It is a fundamental industry shift. It is changing how retailers set their shelves, how distributors allocate time and programming, and how consumers discover and commit to new products.

At Liquid Opportunities, we work with emerging beverage founders every day. What we see in distributor meetings, field activation reports, and retail resets is this: the brands that are winning are the ones that are structured, thoughtful, and aligned with how the modern beverage business works. Talent, taste, and brand story all matter, but execution wins shelves.

Understanding the New Beverage Landscape

Across the country, analysts and operators alike are identifying the rise of a fourth category. These are products that do not fit neatly into beer, wine, or spirits. They include vodka based teas, sparkling cocktails, flavored malt beverages, spirit forward lemonades, and even functional alcohol hybrids. These formats are fluid, flexible, and flavor forward.

What unites these brands is not what they are made from, but how they show up in the market. They are easy to enjoy, simple to understand, and built for occasions ranging from a beach day to a festival to a casual night in. Most importantly, they resonate with the next generation of consumers.

This new consumer base is not interested in loyalty to a legacy format. They want fresh experiences. They expect convenience. And they are drawn to brands that reflect their pace, preferences, and lifestyle. That dynamic creates enormous opportunity but only for the brands that are ready to meet it with structure and seriousness.

Why Shelf Space Is Moving and How to Prepare for It

Retailers are making room for this shift. Cold boxes are being rebalanced. Shelf sets are changing. Traditional categories are contracting in order to make space for what is growing. This includes spirits based RTDs, hybrid alcohol products, better for you options, and beverages that blur the lines between refreshment and occasion.

Retailers are not doing this just because the products taste good. They are doing it because these categories are moving volume. Distributors are following suit. Wholesalers are reevaluating their portfolios, aligning sales incentives around these high velocity segments, and prioritizing brands that understand how to compete.

If you are preparing to launch or reposition a brand, this is the context that should shape your decisions. Your product may be incredible, but if your launch plan does not align with how today's buyers evaluate brands, it will be difficult to gain traction. The opportunity is bigger than ever, but so are the expectations.

What Founders Should Focus on Right Now

Whether you are building an RTD from scratch or trying to scale a small regional offering, the fundamentals matter more than ever. Your goal should be to operate like a supplier from day one. That does not mean doing everything in house. It means knowing what matters to your distributor and what makes a retailer say yes.

In our work, the brands that build real momentum share a few key attributes:

Pricing strategy
You should have a clear understanding of your cost of goods, freight, taxes, and retail expectations. This is not just a math problem. It is a positioning decision.

Packaging and product readiness
Your product should be shelf stable, leak proof, and visually differentiated. No matter how good it tastes, if your packaging cannot survive the cold box, you will lose accounts.

Launch planning
You should be thinking 60 days ahead at all times. That includes POS materials, staff incentives, account specific programming, and a basic market calendar.

Retail and field support
Having a structured crew drive, regular check ins, and visibility into account activity will set your brand apart. Even modest efforts here make a big difference.

Distributor communication
Your distributor should know what to expect from you and when. If you want them to advocate for your brand, make it easy for them. Give them tools, not pressure.

If this sounds like a lot to manage, that is because it is. But everything listed above can be taught, implemented, and refined over time. It does not require a massive budget. It requires intention, organization, and a willingness to work with partners who understand what the market actually asks of you.

What Liquid Opportunities Does and How We Can Help

At Liquid Opportunities, we are not a marketing agency or a broker. We are a team of operators who have built beverage brands from the ground up, taken them into wholesale, and grown them across multiple markets. We have worked on brands that scaled to national success, and we have helped dozens of early stage founders develop the systems and habits that build sustainable companies.

Many of the brands we work with find us while searching for a beverage broker. And while we are not traditional brokers, we bring a deeper level of partnership by combining decades of operating experience with real world support that drives growth from day one.

Our day to day work includes:

Helping brands structure pricing and freight strategy
Guiding product and packaging refinement
Supporting launches with point of sale and in field playbooks
Managing distributor relationships
Developing account level programming to drive velocity

We do not believe in shortcuts. We believe in building brands the right way with the right partners. We do the work most agencies will not because we know that is what actually drives reorder rates and shelf growth.

If you are starting a beverage brand today, this is the world you are stepping into. It is exciting. It is growing. And it is competitive. With the right preparation, you can build something that lasts and something that sells.

If You Are Ready to Build the Right Way

We work with founders at all stages. Some come to us with an idea and a formulation. Others are already in market but need structure, support, and growth strategy. What matters most is your willingness to approach your brand like a business.

If that is you, we would love to hear from you.

jguhring@liquidopportunities.com or blemmon@liquidopportunities.com and let us show you what your brand is capable of.

The opportunity is here. What you do next determines whether your brand becomes part of the shelf shift or gets left behind by it.

Sources

S&D Insights, Beverage Industry Webinar, April 2025
Brewbound, “Spirits-based RTDs Nearly 25% of 2024 Volume,” April 18, 2025
Fox Business, “Beverage Giants Target ‘Fourth Category’ of Alcoholic Drinks,” June 13, 2025
The Spirits Business, “Top 10 Fastest-Growing Brand Champions 2024,” June 17, 2025
Distilled Spirits Council of the United States (DISCUS), 2024 RTD Sales Data via Fox Business

Newsletter - Spring 2025

The beverage industry is evolving fast. RTDs are maturing, Non-Alc is becoming an everyday category, and THC beverages are making real moves. There’s opportunity, but there’s also a lot of noise.

The RTD Market is Still Growing, But Smarter RTDs have been a dominant force in beverage alcohol for the past five years, but the way they’re growing looks different now.

Single-serve cans (355mL) now make up 69% of RTD sales —a massive jump from just 7% five years ago.
Retailers are tightening their shelves. Large, unfocused RTD lineups aren’t landing like they used to.
Spirits-based RTDs continue to dominate as consumers shift toward higher-quality canned cocktails.
On-premise is opening up more for RTDs, meaning bars, stadiums, and event
spaces are more willing to carry them.

Non-Alc is no longer just about Dry January—it’s becoming a year-round choice for many consumers.

Non-Alc beer is outselling RTDs in volume, signaling a major shift in drinking habits.
Younger generations are redefining drinking culture, leading to the rise of “sober curious” consumers.
Consumers want more than just alcohol-free options —they’re looking for functional benefits, premium ingredients, and a strong lifestyle identity.

THC drinks aren’t just sitting in dispensaries anymore—they’re starting to show up in liquor stores and mainstream retail.

Minnesota, Hawaii, and Connecticut now allow THC drinks in liquor stores, and more states are likely to follow.
Big chains like Total Wine & More are carrying THC beverages, which signals growing mainstream acceptance.
Faster-acting formulas are improving the experience, making THC beverages more predictable and appealing

Cheers to 2025

2025 marks a decade since Liquid Opportunities was founded.

At the helm, Jason Kane continues to lead innovation in the beverage space—just like he did when he helped pioneer the RTD category a generation ago. Jason and the team at LO aren’t just watching the industry evolve—we’re shaping it.

To everyone we’ve worked with—thank you. You’re the ones making things happen, and we’re proud to be part of it.

Newsletter - Spring 2023

RTD Innovation is the gift that just keeps on giving. And as the weather starts to heat up this Spring & Summer - look for those RTD and unique brands that will excite retailers, satisfy consumers and grow your margins!

Industry experts continue to sing the praises of the spirit-based RTD category & trends are backing this up. Year after year of double digit growth and industry dollar predictions in the billions are just two of the main reasons for all of the excitement.

This Spring/Summer, we at Liquid Opportunities will be introducing new, exciting and relevant/proven brands to the beverage alcohol category - from a delicious Soju to an exotic and refreshing adult beverage in a POUCH - to finally one of the most successful (and crafty) Radlers in Canada - Crafty Radler! And don't forget the "first to market" Vodka Kombucha Refresher - Mixt! (All of this on top of the incredibly diverse portfolio of alc and non-alc we currently offer).

We are well aware of the number of new brands being introduced every day, that is why we take special care in partnering and creating those brands which can truly fill a market niche, while at the same time filling

the "white space" within your beverage portfolio.

Enjoy the newsletter, read about our many successful offerings and please let us know if there is anything we can do for you - samples, more information, pricing, etc.

Newsletter - Fall 2022

The beverage industry is constantly evolving with new brands/categories popping up everywhere you look. From "Stillys" to hard kombuchas, from organic to BD, from frozen alcohol treats to dynamic and flavorful non-alcs, you can always count on our industry bringing excitement to the consumer

This Fall, we at Liquid Opportunities can bring ALL of these new categories, with new exciting brands, to your doorstep - as well as our established and well known portfolio of adult and non-alc beverage products.

Have fun looking through the newsletter and let us know if there is any "white space" within your portfolio that we can help fill - our contact information is on the last page!