Tequila Seltzer by Hornitos Launches as Brands Prepare for Summer of Canned Cocktails

If 2019 was the summer of hard seltzers, 2021 is shaping up to be the summer of ready-to-drink (RTD) cocktails. Hornitos' new tequila seltzer, launched today, is the newest entrant into the RTD cocktail category. Instead of being a flavored malt beverage like the White Claws and Trulys of the world, it's simply a combination of Hornitos tequila, a little natural flavoring and some bubbly seltzer—making it part of a trend that's redefining the canned and premixed cocktail category with premium offerings that grow by the week. "Tequila and ready-to-drink cocktails are two of the fastest-growing segments in the spirits category," Rashidi Hodari, managing director of tequila at Beam Suntory, explained. "Bringing them together to deliver a refreshing, yet premium drink experience is an exciting opportunity for us." The new ready-to-drink cocktails come in lime and mango flavors. The data backs up those claims, too. Over the past year, tequila jumped 61% in dollar sales, according to Nielsen. But even that pales in comparison to the RTD category's growth, which has increased dollar sales by nearly 154% over the past year. Hard seltzer—which has seen sales growth leveling off after an explosive few years—grew by 133%. That's meant that tequila-based RTD cocktail brands and seltzers are beginning to multiply fast. For example, Travis Scott's agave-based seltzer Cacti launched earlier this year, and Molson Coors struck a deal with Casa Komos Beverage Group in January to distribute its canned paloma brand, Superbird. How Covid-19 and Ecommerce Disrupted the Alcohol Industry in 2020 Beam Suntory, the alcohol conglomerate that owns Hornitos, isn't the only player looking to increase investment in the RTD category. Just last week, Smirnoff owner Diageo announced that it's investing $80 million to ramp up production of RTD beverages in the United States. There's not a huge difference between hard seltzers and simple RTDs like a tequila seltzer—they both build on a wellness trend that's been growing in the alcohol industry, as consumers demand more transparency in ingredients, calorie count and sugar content. Their sales were also bolstered by the complete shutdown of on-premise alcohol sales in bars and restaurants during the pandemic. But so far, the RTD category has a much more diverse set of options than the hard seltzer category does, indicating that there's still a lot of opportunity for growth moving forward. For example, AB InBev-owned Cutwater Spirits, offers canned margaritas, whiskey sours, White Russians and mai tais—drinks you'd usually have to ask a bartender to make for you. On the Rocks, which was bought by Beam Suntory last fall, offers bottled classics like the cosmopolitan and old fashioned. The big question facing the RTD category now is whether it'll continue to grow as the U.S. heads toward herd immunity to Covid-19 and on-premise sales heat up again. But like so many other pandemic-era trends, the RTD space was already seeing growth before Covid-19 changed consumption habits—and given the recent investments by industry giants, that growth isn't expected to slow in the immediate future. Read Next: PepsiCo Wants to Make Cocktail Mixers Cool Again

Alcohol Industry News

Hornitos Launches New Tequila Seltzer as Brands Prepare for the Summer of Canned Cocktails

The new offering builds on explosive growth in the category

Kathryn Lundstrom

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Kathryn Lundstrom