Bottles are shrinking: Mini liquor bottles emerge as industry lifeline amid slump

Liquor bottles are getting smaller. As high prices weigh on consumer sentiment, spirits companies are rapidly expanding their lineups of so-called miniature — or mini — bottles. With shoppers showing a clear preference for buying smaller volumes rather than giving up premium brands, 50- to 100-milliliter mini bottles are emerging as a new way for the industry to break through a prolonged slump.

CNN reported Tuesday that global spirits companies including Pernod Ricard, Bacardi and 818 Tequila are rolling out small-format product lines in quick succession.

According to market research firm NIQ, the products that gained the largest market share in the first quarter of this year were 50-milliliter brandies and tequilas — roughly a single standard shot — along with 375-milliliter tequilas and liqueurs. Given that the industry has long been built around 700- to 750-milliliter bottles, analysts say the trend toward smaller formats is becoming increasingly pronounced.

Dave Williams, president of Bump Williams Consulting, said "consumers still prefer premium brands, but lately there is a growing tendency to weigh both purchase frequency and volume against disposable income."

Spirits companies are responding to this shift by launching mini bottle products one after another.

Pernod Ricard, the French spirits company that owns Jameson, this month introduced a 100-milliliter version of its Malibu rum liqueur. The company is also expanding its small-format lineup to include existing products such as Skrewball Peanut Butter Whiskey and Absolut Vodka.

Pernod Ricard saw its US sales fall 12 percent in the third quarter of this year. Since then, the company has been diversifying its bottle sizes to let price-conscious consumers enjoy premium spirits at a lower cost.

Pernod Ricard plans to add more brands to its small-format lineup this fall. Colin Kavanagh, Pernod Ricard's chief marketing officer for North America, called the mini bottle market "a very fast-growing segment" and predicted that related product launches "will only become more active going forward."

He said "customers are not leaving our brands — they are choosing 750 ml instead of 1.75 liters, and then 375 ml instead of 750 ml," adding that the ability to try new flavors without a large financial commitment is also driving popularity, and citing new products such as Absolut Tabasco and Malibu Pink as examples.

Other spirits companies are also moving quickly to launch their own mini bottles.

Bacardi's premium brand Patrón last year released a 50-milliliter version of its top-tier El Alto tequila for $16.99. With the standard-size bottle priced at $135, the move was a deliberate strategy to let consumers experience the premium product at a more accessible price.

818 Tequila, founded by American model Kendall Jenner, also introduced a $3.99 mini bottle and said early sales exceeded expectations. Renee Jacobs, chief executive of Calabasas Beverage Company, the parent company of 818 Tequila, said "consumers are drawn to the convenience of small-format products as well as the ability to experience premium tequila at a lower price point," adding that the mini bottle "has significantly lowered the barrier to entry for first-time customers."