Diageo and Pernod Ricard are struggling to capture the ready-to-drink (RTD) canned cocktail market. Sales in the RTD segment surged 28% year-over-year. Agile beer companies captured market share by leveraging existing distribution networks and production capabilities.
Pernod Ricard reported a 10% decline in its U.S. business. Diageo expects North American sales to drop by mid-single digits. Both spirits giants experienced substantial market value declines over the last five years. The companies are now scrambling to enter the only growing segment of the U.S. alcohol market.