Smirnoff and Johnnie Walker maker Diageo PLC (LSE:DGE) is increasing its focus on canned cocktails as it looks to revive growth, according to analysts at Deutsche Bank.
The drinks maker is, according to an FT article, “betting big” on ready-to-drink, or RTD, cocktails, a segment that has continued to expand even as the wider spirits market slows.
Deutsche analyst Mitch Collett said a "more proactive approach to capturing the opportunity" would be viewed as positive for the shares, though he noted the risk that it is just a short-lived fad and any growth proves temporary.
Recent data from the National Alcohol Beverage Control Association points to a softer spirits backdrop, with US market value sales down 2.8% in the 2025 calendar year, while volumes declined 1.4%.
Excluding prepared cocktails, the picture was weaker, with value down 3.5% and volumes off 3.2%.
By contrast, pre-prepared cocktails have been growing strongly, with the segment accounting for around 9% of industry volumes and 3% of value.
Canned and carton cocktail sales values rose 23.2% in 2025, with volumes up 22.6%.
The divergence highlights why Diageo is targeting the category as it looks for areas of growth within a slowing market.
The FT article said Diageo boss Dave Lewis claimed the company "created this category" with the launch of Smirnoff Ice in 1999, though the drink was predated by alcopops like the Bacardi Breezer and Bass-owned Hooch in the early and mid-90s.
The FTSE 100 group’s share of the ready-to-drink market has fallen from around a quarter in 2008 to below 10% last year.
Its current range includes Johnnie Walker Old Fashioned, Tanqueray Negroni, Cîroc Cosmopolitan, Captain Morgan/Pepsi Max, and various Gordon’s Gin, Smirnoff, and Pimm's canned mixes.