Pre made Cocktail (RTD): Why is the gross profit margin consistently high?


Release Time:

May 27,2024

Pre mixed cocktails, as an innovative beverage, have shown a rapid development trend worldwide in recent years. In the Chinese market, with the rise of the younger generation of consumers and changes in consumption concepts, pre mixed cocktails are gradually becoming popular.

Pre mixed cocktails, as an innovative beverage, have shown a rapid development trend worldwide in recent years. In the Chinese market, with the rise of the younger generation of consumers and changes in consumption concepts, pre mixed cocktails are gradually becoming popular.
From the perspective of consumer groups, pre mixed cocktails mainly attract young consumers, female consumers, and consumers who pursue fashion and convenience. These consumers have high demands for the taste, quality, and packaging design of beverages, and pre mixed cocktails perfectly meet their needs.
In terms of market size, the pre mixed cocktail market has maintained a high growth rate in the past few years. With the increasing awareness and acceptance of pre mixed cocktails among consumers, the market size is expected to continue to expand.
Rapid development with high gross profit margin
02 Reasons for maintaining high gross profit margin in pre mixed cocktail business 01 Product positioning and target audience Pre mixed cocktails are usually positioned as fashionable drinks for young consumer groups. Young consumers are interested in new things, willing to try new flavors and products, and are relatively insensitive to prices. They pay more attention to the personalized and diversified consumer experience and products, which allows companies to have some room for pricing and maintain a high gross profit margin to cover cost investments in product innovation, packaging design, and other aspects, and achieve profitability. 02 Diversified flavors and innovative pre mixed cocktails can be created by blending different types of alcohol, juice, spices, etc., to meet consumers' different preferences and needs, such as fruit flavor, tea flavor, vanilla flavor, etc. Unique and innovative flavors can attract consumers, increase the added value of products, and thus support higher prices and gross profit margins. And enterprises constantly innovate, develop new flavors and product lines, maintain market competitiveness, and also help maintain high gross profit margins. A pre mixed cocktail brand that has successfully invested in brand building and marketing focuses on brand building and marketing promotion. Through various methods such as advertising, sponsorship activities, and social media marketing, the brand image is shaped to enhance brand awareness and reputation. A strong brand influence can make consumers willing to pay higher prices for the brand, thereby ensuring high gross profit margins for the product. For example, some well-known pre mixed cocktail brands have implanted advertisements and invited celebrities to endorse in popular movies and TV shows, increasing the brand's added value and consumer recognition. The packaging design and visual appeal of pre mixed cocktails are usually fashionable, novel, brightly colored, and have strong visual impact, which can stand out among many drinks and attract consumers' attention. Exquisite packaging not only helps with product sales, but also increases the overall value of the product, allowing enterprises to obtain higher profit margins and maintain high gross profit margins on the basis of packaging costs. With the development of the pre mixed cocktail market, enterprises are gradually expanding their production scale and achieving economies of scale. Large scale production can reduce the production cost per unit of product, including raw material procurement costs, utilization efficiency of production equipment, etc. At the same time, in terms of supply chain management, enterprises can also help control costs and ensure gross profit margins by establishing long-term stable cooperative relationships with suppliers and optimizing logistics and distribution. 06 Sales Channel and Scene Expansion: Pre mixed cocktails have a wide range of sales channels, including traditional offline channels such as supermarkets, convenience stores, bars, etc., as well as online e-commerce platforms. Diversified sales channels have increased the market coverage and sales volume of products, reducing the risk of dependence on a single channel. Especially with the development of online channels, intermediate links have been reduced and sales efficiency has been improved. Moreover, pre mixed cocktails are suitable for various consumer scenarios, such as gatherings, leisure, and family drinking. The wide range of consumer demand provides strong support for product sales, which is conducive to maintaining high gross profit margins.
In the fiercely competitive pre mixed cocktail market, how to maintain high gross profit margins and achieve sustainable business success has become a focus of attention for many enterprises. And Jiatong's supply chain, with its outstanding advantages, provides a solid and reliable guarantee path for pre mixed cocktail enterprises.
The high gross profit margin of the pre mixed cocktail business is not accidental, it requires careful control from multiple aspects. Jiatong's supply chain plays a crucial role in this process. Firstly, in terms of raw material procurement, Jiatong Supply Chain has strong resource integration capabilities. By establishing long-term and stable cooperative relationships with high-quality base liquor suppliers, juice producers, and spice manufacturers, we ensure the acquisition of high-quality raw materials at the most reasonable prices. This not only ensures the taste and quality of pre mixed cocktails, but also lays a solid foundation for enterprises to control costs. High quality base liquor, fresh fruit juice, and unique spices work together to create an intoxicating pre mixed cocktail flavor, enhancing the added value of the product and enabling the enterprise to sell its products at higher prices in the market, thereby ensuring gross profit margins. Secondly, Jiatong's supply chain demonstrates efficient management and advanced technology in the production process. A strict quality control system ensures that every pre mixed cocktail meets high standards of quality requirements. Meanwhile, by optimizing the production process and improving production efficiency, the production cost per unit of product has been reduced. Advanced production equipment and professional technical team can quickly respond to market demand, launch new flavors and product lines, meet the constantly changing preferences of consumers, and provide strong support for enterprises to continuously create high value-added products. In addition to marketing, Jiatong Supply Chain also focuses on market insights and marketing support. By gaining a deep understanding of consumer needs and market trends, we provide targeted product recommendations and marketing strategies for businesses. Help enterprises create a unique brand image, enhance brand awareness and reputation, and make consumers willing to pay higher prices for the brand. From packaging design to advertising, from promotional activities to market promotion, Jiatong Supply Chain provides comprehensive marketing support for enterprises, helping them stand out in market competition.
Choosing Jiatong Supply Chain means choosing professionalism, efficiency, and reliability. With the support of Jiatong's supply chain, pre mixed cocktail companies can focus on product innovation and market expansion without worrying about issues such as raw material supply and production management.
In short, the high gross profit margin of the pre mixed cocktail business has brought both opportunities and challenges to the industry. In the future development, pre mixed cocktail companies can choose Jiatong for product innovation, strengthen brand building, expand sales channels, to cope with the challenges of market competition and changes in consumer demand, and achieve sustainable development.