Major spirits companies, including Diageo and Pernod Ricard, are losing ground to beer companies in the fast-growing ready-to-drink (RTD) canned cocktail market. Overall alcohol consumption declined, but RTDs were the only major category to grow in 2025. Global sales of spirits-based cans rose 14%. Consumers’ shift toward convenience is also eating into sales of traditional bottled spirits.
The trend has weighed on distillers’ performance. Pernod Ricard’s U.S. sales fell 10% in a recent quarter. Diageo also reported declines in North America. Its share of the RTD market has fallen from 25% to under 10% since 2008.
Both companies are expanding their RTD portfolios to try to regain market share from beer brands, which were better positioned to capitalize on demand for canned beverages.