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Australian Venue Co swaps beer taps for draught RTDs
Australian Venue Co. (AVC) the country’s second-biggest pub group, has converted around 20% of its beer taps to draught ready-to-drink cocktails.
Australian Venue Co. (AVC), one of Australia’s largest hospitality groups, has unveiled a significant shift in its beverage strategy. In 11 of its 200+ establishments, around 20% of beer taps have been replaced with draught ready-to-drink (RTD) cocktails.
The move is further evidence of the growing popularity of RTDs.
AVC’s draught RTD rollout features pre-made cocktails including Espresso Martinis, Negronis, Margaritas, and Fruit Tingles. The company said it hoped the move would help them to provide quick service and consistent quality for a convenience-driven audience.
AVC’s CEO Paul Waterson told Drinks Digest that the decision had been driven by customer demand and the rapid growth of RTDs. “We’ve seen an undeniable shift in what people want when they come to our venues. They’re after innovation, convenience, and exciting new tastes. Draught RTDs tick all those boxes.”
The rise of the RTD
The introduction of draught RTDs by a major hospitality player like AVC underscores the rise of the RTD category. According to drinks market analyst IWSR’s recently released RTDs Strategic Study 2024, RTD volumes in the top 10 global markets, including Australia, have grown by 2% over the past year, with especially strong performance in Mexico (+8%) and Germany (+4%).
RTDs appeal to younger consumers who value convenience and portability without sacrificing quality. According to the study, in Australia the category has expanded beyond the traditional pre-mix spirit and mixer format, embracing more sophisticated cocktails and craft-inspired flavours that rival those made by professional bartenders.
Implications for beer and beyond
AVC’s pivot to draught RTDs could serve as a bellwether for broader industry trends, particularly as beer consumption in Australia continues to decline. As a whole, the proportion of Australians who drink beer has decreased significantly. In the last year, 32.5% of Australians drank beer, a 5.5% decrease from the pre-pandemic years, a report by Canvas8 found.
While beer still holds a significant share of the Australian market, younger drinkers increasingly favour diverse, lower-alcohol, and flavour-forward alternatives.
Pre-batched cocktails served via kegs also generate less waste compared to individual cans or bottles, aligning with growing environmental consciousness among consumers and businesses alike.
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