Here's the number that should get your attention: the spirit-based RTD cocktail market is growing at a 20.5% CAGR and is projected to keep that pace through 2033. IWSR has called RTDs a "beacon of hope" for the broader alcohol industry. Meanwhile, craft beer sales fell 4.3% last year.
RTD isn't a trend. It's a structural category shift. And craft breweries that ignore it are ceding ground to competitors who won't.
This isn't a suggestion that every brewery needs to start canning margaritas tomorrow. But every brewery needs an RTD strategy, even if that strategy is a deliberate decision not to enter the category. Here's how to think about it.
Why RTD Matters to Craft Breweries
RTD is the only major alcohol segment projected to grow in 2026. Every other category, from craft beer and domestic premium to imports, wine, and spirits (neat), is flat or declining in volume.
That alone demands attention. But the real threat is more specific: RTDs are competing for the same occasions, the same shelf space, and increasingly the same consumers that craft beer has relied on.
When a 28-year-old reaches into the cooler at a barbecue, they're now choosing between your IPA, a Cutwater margarita, a HOPWTR, and a THC seltzer. Ten years ago, your competition was other IPAs. The competitive set has fundamentally expanded.
The Consolidation Warning
Recent data from Bump Williams Consulting shows that 10 vendors now account for 81% of all flavored beverage-alcohol dollars. That consolidation happened fast, accelerated by deals like AB InBev's $490M BeatBox acquisition, Molson Coors acquiring Monaco Cocktails, and Tilray launching Popsicle Hard RTDs through a licensing deal.
The window for independent brands to establish RTD shelf presence is narrowing. If you're going to enter, the time to move is now, not in two years when the category is even more locked up.
Three Paths Into RTD for Craft Breweries
Path 1: Malt-Based RTD (Lowest Barrier)
If you already brew beer, you already have the TTB permits and production capability to make malt-based RTDs: flavored malt beverages (FMBs), hard seltzers, and malt-based cocktail-style drinks.
Pros: No additional licensing required. Use your existing equipment. Familiar production process with flavor additions.
Cons: Malt-based RTDs are perceived as lower quality than spirit-based by many consumers. The hard seltzer wave has crested, with dollar sales down over 4%. You're entering a segment where the growth story is less compelling.
Best for: Breweries that want to dip a toe in with minimal investment. A well-made malt-based margarita or lemonade can work as a taproom offering even if you don't distribute it.
Path 2: Spirit-Based RTD (Higher Ceiling, Higher Barrier)
Spirit-based canned cocktails are where the real growth is, at 20.5% CAGR. But for a brewery, this means either obtaining a distilled spirits permit (DSP) or partnering with a licensed distillery.
Eagle Park Brewing in Milwaukee just showed a playbook worth studying: they acquired SoulBoxer Cocktail Co., a brand they were already co-packing for. By converting a co-packing relationship into ownership, they gained a full RTD portfolio spanning alcoholic, non-alcoholic, and THC categories without building a spirits program from scratch.
Pros: Spirit-based RTDs command premium pricing and are in the fastest-growing segment. Consumer perception of quality is higher.
Cons: Licensing complexity. Different distribution rules in many states. May require capital investment or partnership.
Best for: Breweries with existing distillery relationships, co-packing capabilities, or the capital to acquire an RTD brand. Also viable through contract distilling partnerships.
Path 3: NA and Functional RTD (The Wild Card)
Non-alcoholic RTDs are a rapidly growing adjacent category. Mocktail Club just cracked the Virginia ABC control state channel, possibly the first NA brand to do so. Constellation Brands is acquiring HOPWTR. Hiyo (Constellation-backed) is now in nearly 2,000 Target stores.
NA RTDs don't require alcohol production permits in most cases. They can be produced on the same canning lines. And they reach consumers who are moderating or abstaining, a demographic that's growing (nearly half of Americans are trying to drink less in 2026).
Pros: Lower regulatory barrier. Expanding consumer base. Positions your brand as inclusive of non-drinkers. Can be sold in channels where alcohol can't.
Cons: Lower price points than alcoholic RTDs. Crowded field with well-funded competitors. Requires different marketing positioning.
Best for: Breweries with strong brand identity and taproom traffic where trial is easy. Also a natural fit for breweries already producing NA beer.
Before You Launch: The Checklist
Don't skip the fundamentals:
Licensing and Compliance
- Malt-based: Your existing brewer's notice likely covers this. Confirm with your TTB specialist.
- Spirit-based: Requires a DSP or a partnership with a licensed distillery. State-level permits vary widely.
- NA: TTB's February 2026 guidance clarifies that "non-alcoholic" means under 0.5% ABV and requires a qualifying label statement. "Alcohol free" means strictly 0.0% ABV and requires formula approval and lab verification. Get labeling right from day one.
Production Economics
Run real cost models before committing. Factor in:
- Ingredients (spirits, flavors, sweeteners)
- Packaging (aluminum tariffs make this more expensive than it was)
- Co-packing fees if you're not producing in-house
- Minimum order quantities from flavor and ingredient suppliers
Distribution Strategy
Spirit-based RTDs may require different distributors than your beer in many states. Understand your state's three-tier rules for spirits vs. malt beverages before you commit to a format.
Brand Architecture
Should your RTD carry your brewery name, or should it be a distinct brand? Both approaches work, but they serve different strategies:
- Same brand: Leverages existing awareness. Easier to launch. Risk of brand confusion if the RTD quality doesn't match.
- Separate brand: Cleaner positioning. Can target different demographics. Harder to build from zero.
Eagle Park kept SoulBoxer as a distinct brand. Boston Beer runs Sun Cruiser and Twisted Tea as separate brands from Samuel Adams. There's no single right answer, but make the decision intentionally.
The THC Factor
I'd be ignoring reality if I didn't mention THC-infused beverages. In states where they're legal, THC seltzers and tonics are competing directly with both craft beer and alcoholic RTDs. Eagle Park's SoulBoxer acquisition explicitly includes THC expansion plans.
The regulatory landscape is fragmented and evolving fast, but if your state permits it, THC beverages represent another RTD-adjacent revenue stream worth evaluating.
The Bottom Line
You don't have to make RTDs. But you do need to have a position on RTDs, because your consumers, your distributors, and your retail accounts are all asking.
If you decide to enter, start with one format that matches your capabilities and licensing. Don't try to launch six SKUs across three categories. Prove the concept with one or two products, ideally starting in your taproom where you control the experience and the feedback loop.
If you decide not to enter, make sure you understand what you're competing against. The cooler isn't just beer anymore. Your marketing, your taproom experience, and your brand story need to articulate why your beer is worth choosing over the growing array of alternatives.
Either way, pretending RTD doesn't exist isn't a strategy. It's a way to get left behind.