Scotch whisky is late to the business that sustains the advance of alcoholic beverages

Monday, September 21, 2026

Scotch whisky is late to the party in one of the few segments that continues to gain ground within the alcoholic beverage industry: ready-to-drink cocktails, known as RTDs. While major players like Diageo, Pernod Ricard, and Suntory have accelerated their investment in cans and single-serve formats, Scotch still has little presence in a category that is gaining traction at festivals, convenience stores, and for occasional consumption.

Diageo has placed ready-to-drink (RTD) cocktails among its strategic priorities. The company announced on LinkedIn that canned cocktails are changing consumption habits and have become a staple at UK festivals by offering quality drinks in an accessible format. So far in 2016, the group has sold more than 400,000 RTDs at 27 major British festivals, a sign, according to the company, that innovation is driving demand.

Pernod Ricard has also reported significant progress in this business. Its RTD sales rose 17% in its latest fiscal year 2026 results. The group's head in the United States, Conor McQuaid, stated that this remains the fastest-growing category in that market. McQuaid acknowledged that Pernod had been late to the game, but defended a "disciplined" strategy, using RTDs as a way to attract customers to its bottled spirits and as part of its convenience offering alongside smaller formats.

Similarly, Greg Hughes, CEO of Suntory's spirits division, stated during the company's results presentation that the size of the category is already driving the overall growth of spirits. The company is strengthening its presence in Asia with offerings based on Jim Beam and various Japanese whiskies. In Oceania, Managing Director Ashish Gandham attributed this move to a shift in demand and noted that the company is working with customers and distributors to tailor products, formats, and experiences to each consumption occasion.

Market data supports this shift. IWSR estimates that canned cocktails saw an average annual growth of 8% between 2019 and 2025. The consultancy forecasts a slowdown over the next four years, to a range of 2%-3%, but even so, the segment is expected to perform better than other parts of the business. According to IWSR, the value of single-serve sales has already surpassed vodka, although this comparison has a caveat: a significant portion of RTDs use vodka as their base.

The internal composition of that category is also changing. Before the pandemic, much of the growth came from hard seltzers, especially in the United States. In 2025, however, premium and higher RTDs, that is, those based on spirits, increased their volumes by 15%, with references between 7% and 10% alcohol playing a central role.

This shift is significant for the beverage sector as a whole because it coincides with a decline in overall sales of beer, wine, and spirits, driven by changing habits, health concerns, and more cautious spending. If consumption moves toward ready-to-drink formats and higher-value per unit, categories that react first can gain shelf space and consumption slots previously occupied by other products.

Within the whisky sector, American, Irish, and Japanese brands have made the most rapid progress in this area. The reason is simple: a segment of the public is willing to pay more for a single serving if they perceive quality, variety, and convenience, and if they also drink less. This is where Scotch whisky lags behind, despite representing around a third of whisky consumption by value.

The explanation has both a regulatory and a commercial component. Scotch requires a minimum maturation of three years. This requirement adds financial pressure to distilleries compared to spirits like vodka, tequila, or gin, which can be incorporated into ready-to-drink mixes sooner. Added to this is a common concern within the industry itself: if RTDs (ready-to-drink) are useful for attracting new consumers to a brand, it's not always easy to do so with a young spirit without compromising the quality image that many distilleries have spent years building.

Despite these reservations, figures from other whisky categories show that there is potential. Jameson has gained ground in the US market with its ready-to-drink offerings. Brown-Forman announced that Jack and Coke, its partnership with Coca-Cola, has now sold 1.8 million cases worldwide since its initial launch three years ago. In its first full year in the UK, that product generated over £55 million in revenue.

In Scotland, there are already some developments, although still limited. Chivas Brothers has launched its own version of Ballantine's with cola. Cutty Sark markets a classic Scotch whisky mix with ginger ale. Wee Smoky and Bruichladdich are also entering the premium cocktail market. Diageo, for its part, has launched Johnnie Walker Blonde, a lower-alcohol cocktail with lemonade, and twelve months ago introduced Johnnie Walker Black Ruby Blackberry and Cola in Australia, a pioneering market for ready-to-drink cocktails.

Diageo admits that the group has lost time and market share in this area. The company once controlled almost a quarter of the RTD market and now holds around 10%, although it remains the second largest player globally. Dave Lewis has been critical of the group's response to ready-to-drink whisky and has expressed disappointment with some flavors, particularly within the Crown Royal range.

Their argument is that, since around half of Scotch and other whiskies are already consumed mixed, there's room to bring higher-quality offerings to the ready-to-drink format. For Scotch whisky, the issue isn't just about jumping on the can and portable format bandwagon. It's also about deciding how to protect its premium positioning while seeking new buyers in a segment that's already changing the way spirits are sold and consumed.