Target unveils new private label adult beverage line

Dive Brief:

  • Target has introduced a new private label line of pre-mixed cocktails, according to a Tuesday announcement from the retailer.
  • The new brand, Casa Cantina, is part of Target’s Wine & Spirits Selects assortment of adult beverages and is available at all Target locations that offer wine.
  • Target’s addition of the Casa Cantina line of ready-to-mix drinks to its portfolio of owned brands expands the retailer’s already-extensive selection of in-house alcoholic beverages.

Dive Insight:

Casa Cantina includes three varieties — Classic Margarita, Strawberry Margarita and Piña Colada — all of which are made with “premium ingredients,” like strawberry puree, pineapple and coconut, Target said in the announcement. All of the drinks are vegan, gluten-free and free of artificial flavors and sweeteners. Most of the items under the new brand cost under $10, according to the retailer.

The new brand augments Target’s multiple varieties of private-label wines, some of which are available for as little as $5 per bottle. Walmart has also taken steps to attract shoppers with low-priced wine.

Retailers have been focusing especially heavily on private label products in recent years, according to research released earlier this year by shopper intelligence firm Catalina. While the number of new products has dropped during the pandemic, merchants have rolled out products under private labels at a greater rate than national CPG companies, Catalina said. 

Target’s decision to add more alcoholic beverages to its line-up follows the retailer’s disclosure earlier this month that it plans to focus more heavily on in-demand items like food and beverages as it looks to cut back its inventory and cushion the blow inflation is having on its profit margins.

The retailer is bolstering its assortment of unique products to stand out with shoppers. In addition to its new adult beverage line, Target is serving as the initial exclusive retailer for Magic Spoon as the celebrity-backed, better-for-you cereal maker expands beyond the direct-to-consumer channel. Target is carrying three of the startup’s best-selling varieties, including Fruity, Cocoa and Peanut Butter.

The cereal startup, which began operations in 2019, said last week that it has raised $85 million in a Series B funding and and plans to use the funds to support its expansion into retail.