Lake Hour, the ready-to-drink (RTD) cocktail brand co-founded by a Marvel actor and film producer, is adding a spirits industry veteran to the top of its setlist. If you’re thinking big deal, another B-list celeb brand, you’re partially right – but this one now has former Ilegal mezcal COO Michelle Ivey leading the company, which is a little more interesting. So what’s compelling to Ivey about the RTD space? Lake Hour’s new CEO brings two decades of experience building and scaling beverage brands, including her 11 years at Ilegal mezcal where she played a key role in transforming the brand from a niche independent label into one of the world’s most recognized mezcals, culminating in its 2023 acquisition by Bacardi. Ilegal’s leather-clad, politically bold brand is a far cry from Lake Hour’s wholesome summer on the dock vibe, but Ivey sees a parallel in that both brands are about fun – because in case you forgot, this is booze. By taking control of the business, the founders who have applied their film industry expertise to irreverent videos and memes, will be able to amplify the creativity of the brand. She’s also jazzed about applying her experience in a niche agave category to emerging segments in RTDs, mainly hard tea and no-bubbles. Both segments have found success recently, led by brands like Mom Water and Surfside. Single flavor UPC sales of spirits-based tea flavored RTDs are now ranked third overall in flavor (+291% in off-premise sales over the last year), making it one of the largest flavor trends in the RTD category, behind citrus and tropical flavors. But where’s the new angle as everyone looks for growth in the same RTD trends? - RTD brands are really grabbing a hold of Corona’s find your beach mantra, whether it be a festival or, in this case, a lake. The brand started in the Finger Lakes region and has expanded via other lake-adjacent areas.
- Secondary cities in secondary markets will be a priority, where the brand will have an easier time getting ahead of better-for-you entrants and earning attention from consumers.
- With change comes opportunity, says Ivey, who sees recent distribution shakeups as a positive by leveraging newly formed alliances of former beer distributors who are hungry to move higher value cans.
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