By Jordan Valinsky, CNN
New York (CNN) — The future for big booze might be smaller — literally.
Jameson maker Pernod Ricard, Patrón owner Bacardi Limited and Kendall Jenner’s 818 Tequila are just a few of the alcohol companies expanding their mini bottle selections. Shoppers looking to stretch a dollar are increasingly choosing smaller packages instead of abandoning their favorite premium brands, making minis one of the fastest-growing package sizes for alcohol.
The biggest gains in market share during the first quarter were brandy and tequila in 50-milliliter bottles, which is the size of a standard shot, as well as 375-milliliter tequila and cordials, according to NIQ data provided to CNN by Bump Williams Consulting. A standard bottle of alcohol is about 700 to 750 milliliters.
“We still see high-end brand interest, though perhaps frequency and pack size have become bigger parts of the purchase decision lately as consumers manage their discretionary income,” said Dave Williams, president of Bump Williams Consulting.
This month, Pernod Ricard expanded its Malibu rum liqueur into a new 100-milliliter format, adding to a growing lineup of smaller offerings that include Skrewball peanut butter whiskey and Absolut vodka.
Sales in the US market have been sluggish, dropping 12% in the third quarter, so the Paris-based company is hoping budget-conscious consumers are looking for more affordable and portable ways to enjoy premium spirits.
“What’s reassuring for us is people are not trading out of our brands, per se, but they are maybe taking a decision to switch from a larger size into a smaller size,” said Colin Kavanagh, chief marketing officer for Pernod Ricard North America.
Over the past year, Kavanagh said that a growing number of Pernod Ricard shoppers were buying 750-milliliter bottles instead of 1.75-liter bottles. Customers who typically bought a standard 750-milliliter bottle, better known as a “fifth,” were downsizing to 375-milliliter versions.
The company began to expand its smaller size offerings after the success of its mini Skrewball peanut butter whiskey a few years ago.
“That really drove us to think more about what we could do with that format and really tap into those trends, whether it’s around affordability, convenience, but also, quite frankly, just bringing some fun as well,” Kavanaugh said, noting that the small size lets consumers experiment with new flavors, like Absolut Tabasco and Malibu Pink.
Other brands are increasing their “nips,” too.
Patrón’s El Alto tequila launched a 50-milliliter version last year for $16.99. The company told CNN the smaller bottle gives drinkers another way to try its highest-end tequila, which typically sells at $135 for a standard size. That makes the mini more approachable for first-time buyers and occasions like gifting.
For 818 Tequila, there has been “strong early demand” for its expansion into “nips” priced at $3.99, said Lanay Jacobs, president of 818 Tequila’s parent company Calabasas Beverage Company.
“Consumers are drawn to the convenience of the format while also viewing it as an affordable way to experience a premium tequila,” she told CNN. “The format also lowers the barrier to trial, making it an easy entry point for consumers who may be discovering 818 for the first time.”
Pernod Ricard’s Kavanaugh calls it a “fast-moving sector” with plans to add more brands in the fall.
“You’re going to see even more activity in this space,” he said.
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