In this article, you’ll learn:
- Why cafés should consider selling RTD coffee products
- Which RTD coffee products to make and sell
- How to launch and grow your RTD coffee products successfully
Ready-to-drink (RTD) coffee beverages are on the rise, as more people live on the move and look for ways to enjoy their coffee anywhere. Gen Z is driving much of that demand, craving a sip of coffee to match their busy lifestyle.
The market has followed suit, reaching USD 29.4 billion in 2024, and it could hit USD 42.5 billion by 2030, with North America being the largest market.
But for newcomers to the RTD industry, what is the best path forward in such a competitive market? To understand the RTD process, we spoke with Ian Bailey, Founder of Vivid Coffee Roasters in Burlington, Vermont. Read on for his insights.
Why should cafés consider selling RTD coffee products?
Cafés should consider selling RTD coffee products as demand continues to rise, especially among Gen Z drinkers who want quality coffee on the go.
Roasters who want to start their own RTD brand can look to others for guidance. They should also weigh consumer trends, shipping and handling, and manufacturing, alongside perfecting the product itself.
“Exploring and planning for our line of canned coffee products was something I was thrust into more than something I had been dreaming of. In March 2020, when the world shut down due to the COVID pandemic, a lot of people’s businesses had to adapt to survive,” mentions Ian.
This is when he decided to research and invest in moving towards canning cold coffee to improve profits.
RTD beverages include canned cold coffee, iced lattes, nitro cold brew and flavoured drinks, which individual roasters create and package. Roasters can present them in cans, bottles, or flexible pouches, using their own beans so the drinks reflect their current menu.
Customers can buy the same iced coffee canned or in the shop, and a café typically displays these drinks in a cold case, easy to grab and go. Those drinks need to appeal to Gen Z, who make up 30% of the population and drive RTD consumption.
Branding and colour schemes matter too, and research shows the Gen Z population prefers cheerful yellow hues, zesty lime, and lavender. Designing for everyone is hard, so when targeting likely RTD buyers, something brighter and bolder works well.
Colour carries real weight in marketing, with some research suggesting it drives 62–92% of buying decisions. Yet branding is only one aspect of the RTD enterprise. What goes inside the can matters too, and the locally roasted, carefully sourced beans will be the shining star.
Which RTD coffee products should your café make and sell?
Your café should make and sell a mix of RTD coffee products, such as simple iced coffee for purists and sweet, milky lattes for Gen Z drinkers.
With so many RTD brands already on the market, standing out is challenging, so roasters must win over their clientele and perfect the recipe inside. RTD beverages can be simple cold coffee or nitro cold brew, which producers infuse with nitrogen for a foamy, creamy texture.
They can also be milky latte drinks or carry various sweeteners, though cans remain the most common vessel. Some shops bottle their drinks, and others use flexible pouches for larger quantities.
Cold brew may be the easiest format to pursue at the start, since it simply involves brewing coffee and canning it. Roasters can add sweeteners or milk powders later.
Gen Z members typically prefer sweet lattes over simple black iced coffee, so a roaster should diversify by offering plain iced coffee in cans alongside a sweeter, creamier latte for drinkers who want something flavoured and milky.
Once a roaster settles the components and the design of the cans, they must market them effectively. RTD cans are an extension of a roaster’s brand and identity, so a cohesive marketing strategy can build recognition and forge strong relationships with consumers.
Roasters must also watch shelf life and monitor sales. Canned cold coffee typically keeps for months without refrigeration, and in the fridge, cans can last up to 12 months.
To get everything they want from an RTD line, roasters must also choose between private label and contract manufacturing. The latter puts much of the work on their shoulders. With a private label such as Hardtank, the partner handles everything and works with you to promote your brand.
Companies like Hardtank know how to produce shelf-stable, marketable, high-quality RTD products while preserving a roaster’s identity. First-time RTD producers should therefore lean towards a private manufacturer, since contract manufacturing asks a roaster to create everything themselves, which can be time-consuming. Either way, Hardtank offers both options.
Ian describes what he found among manufacturers: “The vast majority of co-packers and manufacturers of RTD iced coffee produce cold brew. While cold brew is certainly massively popular, I didn’t think it would be a good fit to represent our brand, Vivid Coffee.”
He adds: “Our coffee is sourced and roasted with dedication and intent to highlight complex flavours that reflect terroir, variety, and excellent processing by the coffee producer. We find that brewing coffee then chilling it immediately produces an iced coffee that aligns with our sourcing and roasting values.”
Vivid began working with a new manufacturing company that matched their values, sending samples and offering factory visits. Within 4–5 weeks, Vivid released its first canned iced coffee in late May 2020.
“Our first offerings included our signature Sugar Shack Blend and a few single-farm, single-variety offerings. The single-origin offerings have always been and continue to be limited and seasonal,” mentions Ian.
To reach a wider audience, Ian and his team thought about what Vermont was famous for, and the idea of a canned Maple Latte came to mind.
“I think the biggest success we have had in RTD is when we worked on creating a canned maple latte. The maple latte is perhaps Vermont’s most ubiquitous coffee shop offering – utilising only 100% Maple Syrup produced in Vermont,” Ian mentions.
Overall, when starting an RTD enterprise, roasters should maintain their values while finding ways to appeal to the wider public.
How can cafés successfully launch and grow their RTD coffee products?
Cafés can launch and grow their RTD coffee products successfully by nailing their price point, packaging, fridge placement, and promotion, ideally with a manufacturing partner.
After launching an RTD brand, roasters must understand their price point, merchandising, fridge placement, packaging and labelling requirements, and their promotion strategy. A way to test a product is to assess consumer response to a prototype and make adjustments where needed.
Working with an established manufacturer such as Hardtank makes this process easier, since they hold extensive knowledge and can guide roasters towards success. They can advise on what to put on the label, how to create an eye-catching design, and where to place the product. With their support, pricing also becomes easier than going it alone, which helps secure a profit.
On an RTD coffee products path, launching can take only a few weeks with market-ready formulations, though consistency remains essential because that is what consumers want. A café can then replicate an RTD beverage and sell it in local grocery stores or through wholesale suppliers, with a partner manufacturer handling all of this.
“We have had lots of ups and downs with RTDs. We explored distribution… but many of the larger distributors could not carry the product because of the cost – since we weren’t using cheap coffee, it was impossible for us to reduce wholesale cost for the product to a place where we could work with a larger distributor,” says Ian.
They now self-distribute locally. “It keeps the product reasonably priced in the grocery stores, co-ops, markets, restaurants, and cafes we sell to,” explains Ian.
Vivid crafted an RTD production, marketing, and distribution model that lets them uphold their values for the high-quality coffee they care about. Turning to an RTD expert such as Hardtank can point roasters in the right direction towards a successful launch.
RTD coffee products: Key takeaways
- Demand for RTD coffee products continues to rise, driven by Gen Z and on-the-go lifestyles. The market could climb from USD 29.4 billion in 2024 to USD 42.5 billion by 2030.
- Roasters should diversify formats, offering plain cold coffee alongside sweeter milky lattes, and treat their cans as an extension of the brand.
- Partnering with a private-label manufacturer like Hardtank helps first-timers quickly launch shelf-stable, consistent products.
Ready to add the perfect RTD coffee products to your café? Explore Hardtank’s private-label RTD solutions, or contact the team to get started.
RTD coffee products: FAQ
Why are RTD coffee products growing so quickly?
RTD coffee products grow so quickly because more people, especially Gen Z, want quality coffee on the go. The market reached USD 29.4 billion in 2024, and it could hit USD 42.5 billion by 2030. Gen Z, who make up 30% of the population, drive much of that demand.
Should a café choose cold coffee or lattes for its RTD range?
A café should offer both. Cold coffee is simpler to start with, since it involves brewing and canning. Gen Z drinkers, however, often prefer sweet, milky lattes, so a diverse range reaches more customers.
Is private label or contract manufacturing better for a first RTD launch?
Private label suits most first-time producers. A partner like Hardtank handles production, shelf stability, and branding. Contract manufacturing leaves more of the work with the roaster, which can be time-consuming.
Want to launch your own RTD coffee products?
- Explore private-label RTD: learn how to launch your own canned coffee
- Develop your product: see how Hardtank builds RTD coffee products from recipe to shelf
- Go wholesale: find out if market-ready RTD coffee products suit you
