A focus on natural ingredients and targeting the health conscious is having a positive impact on the RTD market, according to Clean Collective.
Since launching in Australia in October last year, the RTD producer told The Shout it is on track to grow its distribution footprint to 200 Sydney retail outlets by the end of year, adding 100 in Victoria and targeting expansion in Queensland.
The New Zealand-born company was founded in 2016 by Holly McGrath and Daniel Benoy and focuses on the ‘better for you’ RTD market with its premixes based on natural and “clean” ingredients.
“In the last 12 months, the business sold 12 million cans of drink,” McGrath said.
“Cleaner, low sugar or more wellness-focused products used to have a stigma around them but now are the preferred choice.
“Consumers of all ages care about the sugar content and nutritional attributes of their drinks and are making the switch – this is evident in the fact that every major RTD brand now offers a low or no sugar alternative.”
While RTDs had a history of being purchased by younger customers, McGrath said the growth in the category has shifted to Gen X, who are delivering the highest revenue growth, pointing to Endeavour Group data.
The Clean Collective range offers blended fruit-infused flavours like pineapple, passionfruit, pear and elderflower mixed with premium spirits. The products are also gluten-free and vegan.
“People are moving away from beer, cider, and dark spirits, in favour of cleaner, lighter alternatives,” McGrath said.
“Lighter, cleaner, better for you products will further dominate and take over more space in stores, bumping out dark spirits and other traditional liquor categories.”
McGrath said consumers can expect new flavours from the category and with so much competition, the market is booming at the moment.
“We are also leveraging our New Zealand customer base and learnings from that market,” she said.
“This has proven hugely effective so far and gives us an edge against other new brands entering the market who don’t have that existing experience or following.”
