As the temperature rises and the outdoor life spreads to the beaches and open-air bars, RTDs (Ready to Drink) beverages become the tipple of choice for Lebanon’s younger drinkers. According to the International Wine and Spirit Record’s latest report, some 134,000 9 liter cases of RTDs were sold in Lebanon in 2004. Out of these, 76,000 cases were Bacardi Breezer, Smirnoff Ice and Smirnoff Black Ice. Bacardi Breezer is the leader in sales, with 2 million bottles sold in 2004, and dominates both the off-trade and on-trade market by 50%. Overall, the bulk of total RTD sales were done in off-trade sites.
Kassately, manufacturers of local brand Buzz, is forecasting to sell some 40,000, 9-liter cases over the course of May to October, representing an estimated $450,000 worth in sales.
We have been involved in quite an aggressive marketing campaign, we’ve improved the quality and packaging of our product, and I believe that it will pay off,” said managing partner, Nayef Kassatly, revealing that $500,000 had been spent in advertising the brand.
Carlo Vincenti, of the Vincenti Group agents for Bacardi Breezer, is more cautious with regards to his predictions for the summer months.
“Sales will be good if things remain calm,” he says. “But we have detected a drop in sales since February 14, mainly due to a drop in tourism and on-trade activities.”
Introduced in Lebanon in May 2001 with Bacardi Breezer, RTDs’ instant success was a short-lived one.
The easy-on the-palate concoction was initially a smooth sell in a country marked by a young consumer population, and up until 2002, the beverages benefited from a steady growth, reaching its peak at some 105,000 9 liter cases imported into the country.
The fad subsequently died down and the market has been declining over the course of the last 3 years by over 25% to subsequently stagnate, reaching 75,000 9 liter cases imported in 2004, according to Vincenti. Today, he estimates the total value of the market at some $2.5 million.
