Organic RTD cocktails challenge hard seltzers on US shelves

04 Jun 2020 --- US-based Square One Organic Spirits has launched organic-certified ready-to-drink (RTD) cocktails that are aimed at Millenials and Gen Z consumers. The long-time producer of organic vodka and botanical spirits positions the beverage as an “ultra-premium cocktail with less alcohol but more flavor.” The launch is in line with recent trends in the US beverage space, where innovation in sparkling RTD alcoholic beverages has proliferated.

“Consumers – particularly Millennials and Gen Z – are increasingly conscious about what they are drinking and they are attracted to the certified organic ingredients and lack of artificial flavorings,” says Allison Evanow, Founder and CEO, Square One Organic Spirits.

The lightly sparkling RTD cocktails boast all organic ingredients, including vodka, real juice, botanical extracts and no artificial preservatives. They are US Department of Agriculture (USDA) Certified Organic, heat-pasteurized and have an alcohol by volume (ABV) of 7.5 percent.

Botanicals continue to blossom in alcohol NPD. Innova Market Insights has tracked a 21 percent CAGR growth in alcoholic beverages launches with botanical flavors (Global, 2015-2019). The market researcher has also found that 18 percent of launches with botanical flavors were tracked with a No Additives/Preservatives health claim, crowning it as the most widely used claim paired with botanicals (Global, 2019). Gluten-free (17 percent) and Organic (14 percent) claims took a close second and third place in the flower and herb space.

The drink follows on the success of hard seltzers in the US, which offer a refreshing beverage with less sugar compared to traditional options, such as beer. However, even beer has found its way into seltzers with the release of Leinenkugel’s “Spritzen” beer with a splash of seltzer launched earlier this year.

Flavors in the Square One range include:
Pear of Roses: Organic vodka, pear, rose, lavender, rosemary, lemon.
Basil Berry Fizz: Organic vodka, basil, strawberry, lemon.
Mediterranean Pearl: Organic vodka, bergamot, orange, pomegranate, coriander, star anise, lime.
Cucumber Therapy: Organic Vodka, cucumber, rose, ginger, lime.

Square One's new range of organic RTD cocktailsIn contrast to many of the current options, which focus on reducing sugar and calories, Square One cocktails emphasize the multifaceted experience of its beverage. The brand makes use of storytelling, tapping into Innova Market Insights’ number one Top Ten Trend for 2020. The Basil Berry Fizz is described as “a memorable taste of summer,” while the Cucumber Therapy is positioned as “a fresh, spa-like cocktail.”

“Our consumer wants a light but complex tasting cocktail, not a hard seltzer with one flavor and certainly not a flimsy diet version of an original,” notes Evanow.

Botanicals bloom
Organic trends are set for growth, also in indulgent categories according to a recent Special Report on organic trends. Growth in organic may be due to media platforms, says Erik Walder, Product Development & Marketing, Blattmann Schweiz who previously spoke with FoodIngredientsFirst.

“The social, ethical and environmental effects of consumption are of great importance for a younger generation of organic consumers. Media platforms have great influence as they are increasing awareness in regards to dietary consumption habits and the impact it has around the globe,” he said.

Botanicals may have additional functional benefits, which add an extra boost of benefits to their unique flavors. Examples include lavender, which is associated with a calming effect or ginger for a spicy, energizing beverage. Focus on organic and botanicals rather than reduced sugar demonstrates diversification in the sparkling RTD alcoholic beverage market.

However, sugar has been an area of concern in premixed cocktails. Earlier this year, the UK’s Action on Sugar highlighted alarming rates of sugar in premixed spirits, which may be due, in part, to voluntary labeling laws for alcoholic beverages.

By Missy Green