The impact of ready-to-drink beverages on the beverage alcohol landscape has been profound, and by all accounts, their influence is only set to increase. Over time, the category has gone from being on the fringes of drinking culture to guiding the core strategies of some of the world’s largest beverage companies. So, what does this trend say about consumers in 2023 and beyond? And how will the industry react to its sustained success?
The Park Street Insider Podcast welcomes Spiros Malandrakis, Industry Manager for Alcoholic Drinks at Euromonitor International, to the mic for a conversation with Emily Pennington on why RTDs resonate with consumers and what their widespread appeal means for the industry. They’ll break down the different types of RTDs, unpack the market conditions that have led to their success in the U.S. and abroad, and consider how brands of all sizes can use this trend to their advantage.
Key topics mentioned:
Phases of Development
Ready-to-drink beverages may have hit their stride in the last few years, but it’s been an evolving category for decades. We trace the phases of RTD development to explain why they have become so relevant in today’s market.
RTDs: Not a Static Principle
Malandrakis explains why the flexibility of RTDs to fit different companies, consumer cultures, and sub-categories has made them the perfect antidote to a drinker’s current thirst for innovative products.
In this episode you’ll hear from:
Spiros Malandrakis, Industry Manager – Alcoholic Drinks, Euromonitor International
From Balcones Distilling’s intricate Cataleja Texas Single Malt, showcasing 15 years of commitment to craftsmanship, to Guy Fieri’s bold entry into the malt beverage scene with Flavortown Spiked Fruit Punch, November product releases featured a diverse range of flavors to explore. Below is Park Street’s full product release recap from November 2023.
November 2023 Alcohol Industry Launch Recap
Balcones Introduced Cataleja TX Single Malt
Balcones Distilling marks its 15th anniversary with the unveiling of Cataleja Texas Single Malt, a testament to the distillery’s commitment to crafting unique flavors. The single malt whisky started in Kentucky bourbon barrels and then matured in decommissioned Sherry Solera casks. Aromas are described as brandied figs, smoked paprika, sautéed apricots, and more. The palate unfolds with Medjool dates, cashew butter, cacao nibs, and eucalyptus oil, leading to a bittersweet finish. Available at a suggested retail price of $125, the 118-proof Cataleja Texas Single Malt is offered in select retailers across Texas, California, Illinois, Colorado, New York, and Florida.
“Cataleja Texas Single Malt is one of the most complex and unique whiskies we’ve made,” said Jared Himstedt, Head Distiller at Balcones Distilling. “We each had our own vision of Cataleja, what it might become, and its individual character. Even now that it’s here, it’s more distinctive than we imagined. This process showcases our continued commitment to engaging with our whisky in a meaningful way to create unique, expressive flavors.” (Source)
Guy Fieri Launched ‘Flavortown’ Spiked Fruit Punch
American Restaurateur and Food Network personality Guy Fieri is set to launch a new line of canned malt beverages called Flavortown Spiked in collaboration with Connecticut’s Two Roads Brewing Company. Scheduled for release this November, the first flavor in the lineup is a hard-hitting fruit punch that promises 6 percent alcohol by volume and features colorful cans with a lively sketch of Fieri surrounded by flames, reflecting the energetic personality of the celebrity chef. Flavortown Spiked will be available in six-packs of 12 oz. cans for $12, with more spiked punch flavors and hard teas to roll out in 2024. (Source)
Crown Royal Bottled 30YO Whisky
Canadian whisky producer Crown Royal introduced Crown Royal Aged 30 Years whisky, a second installment in the Extra Rare Series, succeeding the Crown Royal Aged 29 Years from last year. Presented in an elegant cream-colored Crown Royal bag, housed within a golden collector’s box and featuring a bottle with hints of gold and iridescent pearl-like accents on the packaging. The latest offering is distilled in the brand’s unique Coffey still, delighting the palate with notes of orchard fruit and vanilla complementing a sweet and creamy finish.
The limited edition Crown Royal Aged 30 Years is available in select regions, including AZ, CA, DE, FL, GA, IL, LA, MI, OH, PA, TX, and military bases. With a suggested retail price of $499 for a 750-ml. Bottle. (Source)
Jim Beam Introduced Old Overholt Extra Aged Cask Strength Kentucky Rye
Jim Beam Distilling Co. is introducing Old Overholt Extra Aged Cask Strength Rye, a meticulously crafted 10-year-old rye whiskey, in limited quantities nationwide. This unique expression underwent a distinctive aging process in an “Escalator Warehouse,” specifically Warehouse V in Clermont, KY. The 121-proof unfiltered whiskey is a delicate blend of mellowed oak, sweet corn, and vanilla, complemented by warm black pepper and cinnamon-toast spice. It has a rich palate boasting brown sugar and honey flavors, intertwined with hints of leather and charred oak, with a rye spice and vanilla finish. The new whisky expression is priced at a suggested retail price of $99.99 for a 750-ml bottle. bottle at local retailers. (Source)
Sierra Nevada Made Its Debut in the Nonalcoholic Beer Space
Sierra Nevada Brewing Co. announced its venture into the nonalcoholic beer category by releasing its nonalcoholic brew line: Trail Pass IPA and Trail Pass Golden. The two brand-new innovations that will hit shelves this December are perfect for those seeking flavorful, satisfying, non-alcohol options crafted using a maltase-negative yeast strain instead of post-brew alcohol removal. Both brews boast less than 0.5% ABV.
Trail Pass IPA, featuring a blend of Amarillo, Bravo, CTZ, Magnum, and Cascade hops, offers an IPA flavor and aroma with a 35 IBU. On the other hand, Trail Pass Golden presents a light, crisp taste with Centennial, Cascade, and Bravo hops, boasting 15 IBU. Both are now available year-round at a suggested retail price of $11.99 per 6-pack of 12-oz. cans.
Sierra Nevada is expanding its non-alcoholic portfolio with Hop Splash Citrus, an extension of its Hop Splash sparkling water. Infused with Mosaic and Simcoe hops, real grapefruit, and blood orange juice, this zero-alcohol option is priced at $8.99 per 6-pack of 12-oz. cans. (Source)
Oscar-winning actress Whoopi Goldberg recently introduced the second edition of her Whoopi Prosecco Superiore DOCG brand, showcasing a bold new aesthetic. This sparkling wine is crafted from organically grown Glera grapes sourced from Asolo, Italy’s hillside vineyards. Presented in a 750-ml bottle that features a vibrant bubblegum pink cage and pull tab, along with playful micro-embossing and debossing details, it provides a fresh and stylish look, complementing a bouquet of fruity and floral aromas with a fresh and robust taste of continuous citrus. The second edition offering is now available at the affordable price of $21.99 with an ABV of 11.5%, accessible through the brand’s official website.
“Whoopi Prosecco is simple, elegant, and meaningful to me. Because I think you should have a great time, great conversations with your friends, and a great bottle of Prosecco,” Whoopi Goldberg said. “The conversation starts when you put it on the table, because it’s so fantastic. I love hosting gatherings with friends and family – that’s why I created Whoopi Prosecco.” (Source)
Michter’s Set to Release 25-Year-Old Bourbon
Kentucky-based whisky brand Micther’s commemorates being named one of the World’s Most Admired Whiskies with one of its rarest offerings: Michter’s 25-Year-Old Kentucky Straight Bourbon. The 116-proof straight bourbon was distilled from a select mash bill, which then undergoes a unique maturation process for over a quarter of a century in a new charred American white oak barrel. It delivers a different flavorful experience on the palate with molasses, holiday spice, chocolate, smoke-roasted nuts, dried fruits, melted butter, and vanilla finish. The 25-Year-Old Kentucky Straight Bourbon will become available in limited quantities for a suggested retail price of $1,500.
“This release of the 25-Year Kentucky Straight Bourbon is an outstanding flavor experience without the overly oaked, dusty old whiskey character,” said Michter’s Master of Maturation Andrea Wilson. “It is a wonderful journey with its transition through sweet and savory depth, world spices, dark chocolates, fruit characters and nut oils almost as if you are eating through a box of fine chocolates. It is an exceptional whiskey for an exceptional achievement in the whiskey world.” (Source)
The Rolling Stones Partnered with Socio Ventures to Introduce Crossfire Hurricane Rum
British rock band The Rolling Stones has partnered with Universal Music Group and Socio Ventures to introduce Crossfire Hurricane. This marks the band’s entrance into the gold-spiced rum category with their first-ever release, which takes inspiration from the classic hit single “Jumping Jack Flash.” Crossfire Hurricane rum captures the edgy and timeless spirit of the band with a precisely blended liquid aged for up to five years in charred oak barrels, resulting in a golden-hued rum that boasts a depth of complexity that matches and elevates any cocktail.
“Owning a business with The Rolling Stones is absolutely electrifying. It is an absolute privilege to create this product alongside some of the greatest artists of our time. The band’s vision and enthusiasm for Crossfire Hurricane set us apart and positioned us to redefine the rum category. And you’re all invited to the show,” said John Fincher, Socio Ventures Partner and Crossfire Hurricane Co-founder. (Source)
Influencer Krista Horton Brought Horton Ready-to-Drink Cocktails to Market
Social media content creator Krista Horton, alongside her husband Bryce Horton, announces a collaboration with Florida Caribbean Distillers to introduce Horton Ready-to-Drink Cocktails. The latest venture of the influencer is the release of its coconut rum-based canned cocktail line. The lineup includes Diet Kola, Pineapple Soda, and Lime Soda, each offering a unique flavor profile to elevate any party. The 7% ABV RTD Cocktails are available in a 12-can Party Pack with just 6-7 grams of sugar and 150 calories per can and are offered for a suggested retail price of $43.99 at select retailers nationwide.
“As a longtime-lover of the coconut rum and diet cola pairing, it was a dream to create a ready-to-drink cocktail for people to enjoy without the hassle of mixing a drink,” said Krista Horton, Founder of Horton Ready-to-Drink Cocktails. (Source)
In this presentation from Bar Convent Berlin, Spiros Malandrakis, International Head of Research – Alcoholic Drinks at Euromonitor, discusses the top trends shaping the alcohol industry heading into 2024. Malandrakis touches on issues like premiumization, RTDs, and e-commerce and how they are affecting the alcohol industry moving forward.
In his presentation at Bar Convent Berlin, Graeme Loudon, IQ Managing Director – EMEA at CGA by Nielsen, dug into opportunities for the alcohol industry on-premise. Loudon discussed the emergence of younger consumers in the on-premise market, the importance of hospitality at venues, and more.
At Bar Convent Berlin, Jesse Cortes, Senior Manager, Business Development at Park Street Companies, discussed the state of the spirits industry heading into 2024. Jesse touched on the global beverage alcohol market, exports to and from the U.S., and spirits consumption in the U.S. and EU.
This October, 19 Crimes and Universal Monsters joined forces to introduce limited-edition wines just in time for Halloween, while Heaven’s Door paid homage to Bob Dylan’s Minnesota roots with “Homesick Blues,” a seven-year-aged bourbon bundled with a copy of Dylan’s original handwritten lyrics. Below is Park Street’s full product release recap from October 2023.
October 2023 Alcohol Industry Launch Recap
19 Crimes and Universal Monsters Unleashed Limited-Edition Halloween Wines
19 Crimes teams up with Universal Monsters to introduce two limited-edition wines, Red Blend and Cabernet Sauvignon, featuring the classic horror monsters Dracula and Frankenstein, for this year’s Holloween season. The Dracula Red Blend delivers sweet aromatics with notes of chocolate, while Frankenstein Cabernet features aromatics of dark berries, violets, and vanilla. Both offerings are 13.5% AVB and packaged in collectible 19 Crimes Halloween bottles.
“19 Crimes and Universal Monsters is the perfect collaboration for Halloween and an opportunity to introduce 19 Crimes to brand new enthusiasts,” explained Treasury Americas Chief Marketing Officer, Carl Evans. “You’ll be able to hear Dracula and Frankenstein come to life on the label through augmented reality, inviting people to experience wine in a rebellious but fun and engaging way, which is the heart of 19 Crimes.” (Source)
Heaven’s Door Announced the Release of “Homesick Blues” Minnesota Wheated Bourbon
American Whiskey brand Heaven’s Door Spirits is dropping a Minnesota wheated bourbon, Homesick Blues. The brand’s latest offering is bottled at a cask-strength proof of 122.7 and aged for seven years. It has a velvety texture and a creamy smoothness created by the addition of wheat. The release also features a book and bottle bundle with Bob Dylan’s original handwritten lyrics to Knockin’ On Heaven’s Door.
Marc Bushala, Co-Founder and CEO of Heaven’s Door Spirits, noted “We are thrilled to introduce ‘Homesick Blues,’ a heartfelt tribute to Bob Dylan’s Minnesota roots and his journey to find home. This unique limited release expression stays true to Dylan’s desire to create a collection of whiskeys which each tell their own story.” (Source)
Molson Coors Unveiled Non-Carbonated RTD
Molson Coors Beverage Company is gearing up to roll out a new line of non-carbonated RTD in the first quarter of 2024. The soon-to-release Happy Thursday line is a spiked refresher that comes with four fruity flavors: Strawberry, Pineapple Starfruit, Black Cherry, and Mango Passionfruit. Each flavor is formulated with 4.4% AVB in 12-ounce cans that target Gen Z drinkers.
“We believe Happy Thursday is everything these consumers are looking for in a spiked refresher: they’re smooth, bubble-free, flavorful, and, of course, refreshing,” said Amanda Devore, Senior Director for Marketing Innovation at Molson Coors in the press release.
“Happy Thursday is really a product inspired by its target audience,” Devore added. “We were able to go really deep with them, giving them something they’re really excited about.” (Source)
Tequila Komos Launched XO, Exclusive Single Batch Expression
Luxury tequila brand Komos is adding a limited-edition single batch expression to its tequila collection, Komos XO. The new expression has been aged in American oak bourbon barrels and French oak red and white wine barrels then finished in Spanish Oloroso Sherry casks. Bottled at a cask strength of 42% AVB, it delivers aromas of chocolate, vanilla, toast, and hints of smokiness that meet a textured palate of dried fruits. Available in a 750-mL etched crystal decanter bottle for an SRP of $1,999 at the Komos website and in boutique bottle shops across the globe.
“The launch of XO serves as a true celebration of the craftsmanship, innovation, and technique that has formed Komos into the global brand it is today,” said Richard Betts, Co-Founder and Co-CEO. “From a craft perspective, Komos much more resembles a wine company than a typical spirits company. For example, having hand-picked every single barrel used to create XO, I am proud to say that our latest expression is the absolute pinnacle of aged tequila, masterfully designed to elevate any occasion.” (Source)
Coca-Cola, Pernod Ricard Partnered Together for Absolut-Sprite RTD Cocktail
Soft drink giant Coca-Cola continues its expansion in the alcohol category as it joins forces with Pernod Ricard to introduce Absolut Vodka & Sprite. This ready-to-drink pre-mixed cocktail is set to be released later next year, aiming to enter select countries in Europe. The Absolut Vodka & Sprite is 5% ABV and available in Sprite and Sprite Zero Sugar varieties.
“We keep consumers at the center of everything we do as we continue to develop our portfolio as a total beverage company,” said Coca‑Cola’s Chairman and CEO James Quincey in a statement. “We are expanding in the alcohol ready-to-drink space, including products that use select brands from our core portfolio. We are excited about our new relationship with Pernod Ricard and look forward to the introduction of Absolut & Sprite.” (Source)
Issa Rae and E. & J. Gallo Introduced Prosecco Brand Viarae
Actress, producer, and writer Issa Rae entered the wine business by introducing Viarae, a new Prosecco brand made in collaboration with E. & J. Gallo Winery. The Viarae Prosecco delivers a crisp, lively, and refined take on the classic sparkling wine. The offering is available nationally through select retailers and on-premises establishments with an SRP of $19.
“We are excited to partner with Issa Rae, who entrusted us with executing her vision of the perfect Prosecco — one that shares our desire to serve joy in everyday moments,” said Beth Orozco, Vice President of Marketing for E. & J. Gallo Winery. “Issa also shares our mission to demystify wine and make it more inclusive. Viarae will help us reach that goal,” she added. (Source)
Sonoma-Cutrer Unveiled New Vintages of Sonoma Coast Chardonnay, the Cutrer Chardonnay and Russian River Valley Pinot Noir
California-based winery Sonoma-Cutrer has announced three new vintage wines featuring Chardonnay and Pinot Noir grapes. The 13.9% AVB Sonoma Coast Chardonnay has aromas of stone fruit, oak spice, hints of clove and caramel, toasted nuts, and light honeydew. Joining the vintage release is The Cutrer Chardonnay, formulated with 14.1% AVB and flavors of baked apple and pear, toasted oak, roasted nuts, and baking spice. Lastly, the Russian River Valley Pinot Noir delivers notes of red berries, cranberry, cherry cola, savory spices, a hint of black tea, and fresh earth, as well as sweet, spicy vanilla from the oak barrel aging.
“With such unique weather and already diverse soil types and growing conditions, these new vintages of Sonoma Coast, The Cutrer and Russian River Valley Pinot Noir are sure to be exceptional members of the Sonoma-Cutrer lineup,” said Director of Winemaking Cara Morrison. Senior Winemaker Zidanelia Arcidiacono added, “Each of these wines are distinctly different while also highlighting the consistency that Sonoma-Cutrer is known for.” (Source)
Diageo Introduced The Cocktail Collection RTD Set, Including Ketel One and Tanqueray
Diageo is expanding its line of RTD cocktails by introducing The Cocktail Collection, which features three new pre-mixed cocktails. The Cocktail Collection includes Ketel One Vodka Espresso Martini, Ketel One Vodka Cosmopolitan, and Tanqueray Gin Negroni. The new offering will join last year’s released cocktails: Bulleit Manhattan and Bulleit Old Fashioned. The 20% AVB collection is offered in four-can 350ml packages with an SRP of $13.99 and an eight-serving 750ml with an SRP of $25.99.
“Cocktail culture continues to flourish, so it’s only natural that consumers are looking to bring elevated drink experiences into their homes,” said Nikhil Shah, Brand Director at Diageo. “But making cocktails at home, and doing it well, can be challenging for the less experienced bartender. The Cocktail Collection is here to alleviate those concerns with convenient, bar-quality cocktails from trusted brands, offering a wonderful new way to enjoy holiday celebrations together this year.” (Source)
El Tesoro Tequila Introduced Mundial: Knob Creek Rye Edition
Beam Suntory’s tequila brand El Tesoro has unveiled its new añejo expression, El Tesoro Mundial: Knob Creek Rye Edition, the second release in the Mundial Collection. The añejo expression is the first and only El Tesoro that is 12-month cask finished, using barrels that originally held Knob Creek rye for seven years. The Knob Creek Rye Edition is offered at the suggested retail price of $175 per 750 ml. bottle.
“We are thrilled to introduce this exceptional new tequila, produced at our home in La Alteña with barrels so generously provided in the spirit of innovation by our friends at Knob Creek,” said Jenny Camarena, third-generation family proprietor and Master of Operations for El Tesoro. “My brother Carlos and I are the students of our father and grandfather before us, who were both proud tequila traditionalists, yet pioneers of their time who were always experimenting. The Mundial series allows us to pursue these creative paths in tequila, and the Knob Creek Rye Edition is no different.” (Source)
Tequila Ocho Launched Second Edition of Overproof Plata “Puntas”
Tequila Ocho has introduced its second edition of Overproof Plata “Puntas”. A blend of two high-proof cuts, Plata Puntas 2023 reaches 106-proof. The brand’s new overproof expression is made of agaves harvested from Rancho Mesa Colorada, and delivers a hint of residual sweetness on the palate. The offering is available in select U.S. states in a 750-ml bottle and offered for SRP: $74.99.
Tequila Ocho Co-Founder Carlos Camarena commented, “Puntas is an expression which, because of the high proof of the spirit, we could only make available for sale at our distillery. After we finally bottled and released it in early 2022, it was so well-received that we knew we had to create a second bottling for tequila aficionados. The 2023 Tequila Ocho Puntas, from Rancho Mesa Colorada, is bottled at 53% abv. The higher proof of this year’s bottling carries an extremely high concentration of agave flavor, making Ocho Puntas perfect for tequila connoisseurs and agave spirits enthusiasts.” (Source)
Johnnie Walker Teamed Up With Honey Dijon
Johnnie Walker Blue Label has announced its collaboration with American producer and DJ Honey Dijon to introduce a new expression, the Elusive Umami, paired with a new track release. Johnnie Walker Blue Label Elusive Umami has a sweet and savory aroma, notes of blood oranges and red berries with sweet wood spices, and a long, sweet fruit finish. The new Scotch offering is 43% alcohol by volume, available globally with a suggested retail price of $369.99.
“For Johnnie Walker Blue Label Elusive Umami, only one barrel out of 25,000 made it as we carefully searched our reserves for this new delicious umami flavor profile,” added Dr. Walker. “Each expression of Scotch whiskey has been hand-picked, allowing us to bring to life the unique character of this innovative blend, which Dijon has perfectly captured in the new track – a true feast for the senses, Johnnie Walker Blue Label Elusive Umami needed the appropriate sound accompaniment. (Source)
Curius Officially Launched Match Tonic Water
Swiss drinks company Curius has announced its entrance into the soft drinks category with the release of MATCH Tonic Water. It features recycled square glass bottles collected from old wine bottles and car windscreens with unique designs and color variations. The new liquid offering consists of four tonic waters, including Indian Tonic Water, Mediterranean Tonic Water, Floral Tonic Water, and Spicy Tonic Water. Available across 14 retail markets with an RRP of $1.9 per bottle.
Alexander Curiger, Founder at Curius said, “MATCH Tonic Water is the first of our innovations to be introduced to the market, and it’s a huge opportunity for us. With the global soft drinks business valued at $805 million in 2019 and projected to reach $1-2 billion by 2027, a growth of +7% , MATCH is set to create waves within 1 a monotonous market. At Curius, we want to turn the thinking behind drinks production on its head by changing the stigma of a classic tonic water to something beyond how a product tastes. MATCH not only tastes great but it looks good too, and all without impacting its functionality and sustainability credentials.” (Source)
Wisconsin-based Minhas Distillery is the second oldest brewery in the U.S. It was established in 1845 and now has a production capacity of 7 million cases per year, with 1.5 million allocated to distilled spirits. Minhas uses this scale to help beverage alcohol entrepreneurs outsource production. In the latest edition of our Co-Packing Spotlight, Park Street University sat down with Alex Kotlyar, Business Development Manager at Minhas, to learn more about the services it provides and his advice to suppliers on how to work with a contract producer.
Our Interview with Minhas Distillery
What are the primary benefits of co-packing from your perspective?
It’s the fastest way to get your product into the market. You will definitely have an easier time growing your brand if you’re not worrying about investing capital and time into packaging equipment.
We scale with your demand, so, say you have a buyer that wants your product “Can we double our volume?” With us, the answer is always yes. We haven’t gotten to that point where we’re constrained by our capacity. That’s definitely the biggest advantage to co-packing, someone with a relatively small investment can get a brand started and they can focus on what they’re good at, which should be marketing and brand building. Leave the manufacturing to us. And while we take care of all the production, we work with just about every major distributor in the country.
If you combine our co-packing services with the back office and distribution support from Park Street, you have a turnkey solution for making a brand and getting it to market. All the back office, distribution, and storage, are taken care of and that is key to making a successful brand. Our customers can just focus on marketing and building your brand instead of getting caught up in hiring employees, doing repairs, and all those unexpected things that come with owning your own production facility.
What services does Minhas offer for suppliers?
We’re a full-service manufacturer – where we provide our customers with our recipes, bottling (our existing bottles or new ones), liquids that we make for our brands, we can also make for a client. We also help our clients to develop their own recipes. It really just depends on what each customer needs.
In the liquor industry, in order to get a new recipe approved by the TTB, it has to be made using approved flavors. If that’s been done before, that’s a very easy process to get approved, but if you’re trying to introduce a new flavor, you have to give yourself a bit more time for the TTB to approve it. There’s always an opportunity to do something new. It just takes a bit longer.
What information do suppliers need to have ready when approaching your company?
Having the product in mind and knowing what you want. It’s good to know what packaging you want, what bottle sizes, what kind of labels you’ll need, and what kind of liquids because a lot of times we’ll get contacted by entrepreneurs that just want an alcohol brand because they like alcohol but they’ve done no research and they really have no idea what they’re doing.
Other times, there’ll be clients that have done their homework, and that makes it much easier to work with someone who knows, “Hey, I want this liquid in this bottle, here’s my artwork. When can you get me to market?” and that’s usually all we need to get started.
Is there a minimum order quantity (MOQ)?
Our customers get to benefit from our economies of scale. We buy millions and millions of cans, millions of bottles. So if you’re using something that we’re already buying, you’re going to get much lower costs than you would by sourcing directly (which isn’t always an option) So on the spirit side, the MOQ is typically 800 12-pack cases of 750 ml equivalent.
We can be a bit flexible with the MOQ if the liquid you’re using is something we are already currently bottling. We can easily add 400 or 500 cases to the end of the run vs. having to set up production for something unique. But ideally, a new brand would plan to start with at least 800 cases for an initial run.
On the canning side, if you’re going to make an RTD or a beer, seltzer, or FMB product with us, typically the minimum runs are at least 40 pallets. Our can suppliers have increased the minimum requirement to preorder decorated cans to 204,000 cans per SKU. In order to match that and match up barrel size, we brew 10,000 gallons, which is 300 barrels at a time. So you would typically produce about 20-40 pallets at a time.
Does your team take care of the delivery?
All of our product is FOB Brewery, meaning we don’t pay for any shipping. We usually ask our co-packers to have a distributor pick up their order once its ready or ship it to a licensed warehouse. We prefer not to store our co-packers products as space is limited.
How does Minhas determine pricing for its services?
It helps when the customer has the recipe ready when they get started because if we know what the recipe is, we can calculate the cost of ingredients, bottles, labels, and packaging and then we add our labor and overhead. It helps to know expected volumes.
What is the average lead time from agreement to completion?
It depends on which product type you’re talking about. If you’re talking about something that requires a preprinted can, right now it is now taking somewhere between 2 to 4 months just to get the cans produced from the time they get approved artwork. And before you do that, you need to get all the labels and TTB approval so it really depends. I’d say the average would probably be about 3 to 6 months.
If it’s a liquor product that can be done much quicker. TTB approval times are sometimes less than 15 days and if we have all the supplies and everything ready, we can typically get started within six to eight weeks. It just depends if they need to come up with their own unique approved flavors and those kinds of things that could extend that timeline.
What are the most common mistakes you around contract production?
I always tell new suppliers to send us the bottle before they purchase it if they’re going to use an outside bottle because we want to make sure it fits our line. Not something we see often but that is definitely something you want to avoid.
Do you have any suggestions on how to get a successful outcome?
I think to be successful in this business: know who you’re selling to and ideally have those orders in place before you ever order production at scale because, and this goes back to the previous question about avoiding major mistakes, over-ordering, and producing more product than you can sell right away quickly leads to large storage charges and aging product that you might have to discount for pennies on the dollar.
For something like vodka or whiskey, that doesn’t matter too much because, even though you’re paying storage fees, the product doesn’t go bad. But if you produce a beer or a cream liqueur, the clock starts running the second you produce it, our beer has a 1 year guaranteed shelf life because it is pasteurized. Even though a year is a good shelf life, if you still have the product in a warehouse six months after production, you’re now left with a product that needs to be sold and ideally consumed within six months. You could end up in a position where you have to liquidate your product and that’s something you want to avoid at all costs.
