Little bottles are becoming a big business for booze - CNN

What the report says

CNN reports that major alcohol companies are widening their use of miniature bottles and other small formats as drinkers look for lower-cost ways to keep buying premium brands. The trend includes Jameson maker Pernod Ricard, Patrón owner Bacardi Limited and Kendall Jenner’s 818 Tequila, all of which are adding or promoting smaller package sizes in the U.S. market.

According to NIQ data supplied to CNN by Bump Williams Consulting, some of the strongest first-quarter market-share gains came from 50-milliliter brandy and tequila bottles, roughly the size of a standard shot, along with 375-milliliter tequila and cordials. Dave Williams of Bump Williams Consulting told CNN that consumers still show interest in higher-end brands, but pack size and purchase frequency are becoming more important as households watch discretionary spending.

Pernod Ricard, whose U.S. sales fell 12% in the third quarter, recently added a 100-milliliter Malibu format to smaller offerings that include Skrewball peanut butter whiskey and Absolut vodka. Colin Kavanagh, the company’s North America chief marketing officer, said shoppers are not necessarily leaving the brands, but many are choosing smaller bottles than before. He also said mini formats help consumers sample new flavors such as Absolut Tabasco and Malibu Pink.

Other companies are taking a similar approach. Patrón launched a 50-milliliter version of its El Alto tequila last year at $16.99, compared with a standard bottle that CNN says typically sells for $135. 818 Tequila’s parent company said its $3.99 nips have seen strong early demand, with the format positioned as convenient and easier for first-time buyers to try.