Breaking Down the RTD Categories: From Hard Seltzers to Canned Cocktails and Beyond

This article is a part of Canned Cocktail Week, a week of content celebrating ready to drink (RTD) cocktails, from seltzers to premium ready-to-serve cocktails and beyond. Click here to check out the rest of our Canned Cocktail Week content.

(Photo: Unsplash/Maria Oswalt)

The ready-to-drink (RTD) category has become a staple among the assorted alcoholic beverages lining grocery store shelves and filling luminous fridges, from canned cocktails to hard seltzers. But not all RTDs are created equal, and understanding the differences can help explain why some taste so different from others.

Many RTD brands have carved out a space in the market by offering lower-calorie options, often comparable to light beer but sometimes with a higher ABV. They’ve also become a popular choice for those looking for a gluten-free option. This is where knowing the distinctions between RTDs can make all the difference in what you choose and how much you enjoy it.

What are RTDs made from?

Let’s start with the bases: RTDs fall into three major categories: spirit-based, wine-based and malt-based.

The Spirit-Based RTD

(Photo: The Original Southside)

Made with distilled spirits such as vodka, tequila, rum or whiskey, these RTDs most closely mimic the flavor and strength of a bar-made cocktail. This segment has grown quickly in recent years, fueled by rising interest in premium ingredients and transparent labeling. Brands like High Noon, Cutwater and On The Rocks have helped push spirit-based RTDs further into the mainstream.

Try: Hoste Gold Fashioned

Arguably the most premium RTD on the market, Hoste spares no expense in the production of its signature Gold Fashioned. This 750-milliliter bottled Old Fashioned is priced at $150 for a reason. 2024’s release is made with with 9-year-old Kentucky bourbon finished in oloroso sherry casks; 6-year-old rye whiskey; 10-year-old rye whiskey; saffron bitters; and demerara. Bottled at 42.2% ABV, there’s no doubt this is a truly spirit-forward cocktail. It also comes with an orange zest atomizer, which adds a lovely citrus fragrance to the surface of your beverage.

Read our review here or buy it here.

The Wine-Based RTD

Built on a foundation of wine — still or sparkling — and often blended with soda, juice or other flavors. These include canned wines, wine spritzers and wine cocktails. They appeal to drinkers who enjoy wine but want a more grab-and-go, ready-poured option. Examples range from Sofia Mini sparkling wines to spritzers from brands like Babe and Ramona.

Try: Suntide Classic Mimosa

(Photo: Suntide)

A classic mimosa made with wine and real fruit, these 5.5%-ABV cans are perfect for your next Sunday brunch.

Buy it here.

The Malt-Based RTD

Brewed in a process similar to beer, then flavored and carbonated, malt-based RTDs have been around for decades. It wasn’t until recent years, however, that the hard seltzer boom brought them into the spotlight. White Claw and Truly spearheaded the category’s explosive growth, though the rise of spirit-based competitors has shifted some consumer attention in recent years. Malt is usually derived from barley or other gluten-containing grains, so these products are not automatically gluten-free, even if flavored or filtered. Anyone avoiding gluten should check the label carefully before choosing a malt-based RTD. Some companies used sugar or agave to make malt-style bases for their RTDs.

Try: Lone River Ranch Water Prickly Pear

(Photo: Lone River Beverage Company)

Ranch water is traditionally built around tequila, but Lone River manages to capture the vibe with a malt base. Each 12-ounce can contains just 80 calories. Prickly Pear is inspired by the prickly pear cacti of Texas.

Buy it here.

The Sugar-Based RTD

Sugar-based RTDs get their alcohol from fermented sweeteners like cane sugar, agave or honey. Made in a process similar to wine, fermented sweeteners forgo the distillation step and make a product that can sit on the shelves next to malt-based RTDs. Some examples include Flybird Margarita with an agave wine base and Hive20 Hard Honey.

Try: Flybird Baja Lime Margarita

(Photo: Flybird Cocktails)

Built around blue weber agave wine and sweetened with cane sugar, this intriguing margarita spin is also made with natural lime juice and dried orange. At 9% ABV, it’s buzzy but not overly boozy, perfect for poolside sipping.

Buy it here.

Because of these classifications, malt- and wine-based RTDs can often be sold wherever beer and wine are sold — including grocery stores and convenience outlets. Spirits-based RTDs, however, face tighter restrictions, frequently limited to liquor or package stores due to regulatory classifications.

In many states, alcohol taxes depend on the product’s base, beer, wine or distilled spirits, rather than just its ABV. Drinks brewed from malt (like many hard seltzers) are taxed at the same low rates as beer, while wine-based RTDs generally see slightly higher but still moderate rates. By contrast, spirits-based RTDs can be taxed dramatically higher — sometimes dozens of times more than a malt beverage with identical alcohol content.

Beyond taxes and store placement, spirits-based RTDs often face more complex rules for labeling, distribution and licensing at both the state and federal level. These added requirements can raise costs for producers and make it harder for spirits-based products to reach the same shelf space and audiences as their malt or wine counterparts

The RTD category shows no signs of slowing down. Once a niche corner of the beverage aisle, it’s now a multibillion-dollar global market projected to surpass $40 billion by 2027, fueled by the continued rise of spirit-based cocktails, premium offerings, and innovative flavor profiles. Brands are leaning into consumer demand for convenience, variety, and quality; whether that’s a lower-calorie vodka soda, a ready-to-serve margarita, or a wine spritzer with a twist. As more drinkers explore the category, RTDs are carving out a lasting role in the broader alcohol market, reshaping how people enjoy their favorite beverages.