By Majella Mark
- Phrosties, the classic frozen liquor concoctions could be a multi-billion dollar business
- U.S. alcohol sales are expected to have a market value of $258B by 2020
Phrosties, the classic frozen concoctions that usually consist of a hard liquor such as rum or whiskey with Kool-Aid and its non-frozen predecessor Nutcrackers, are a few beverages you would find in the summer, at a cookout or on a stoop during a block party. Technically these alcoholic drinks are illegal to sell, we do occasionally see them around, keeping the black culture poppin’ since the 1990s. The liquor mixture has been a battle for police for many years, but a lot of money could be made in this multibillion industry if this hood drink was to go mainstream.
Why This Matters: Like prohibition in the 1920s the more forbidden or exclusive a beverage is, the more in demand it becomes for the consumer market. U.S. alcohol sales are a major industry and in 2018 reached $253.8 billion, which is an increase of 5.1% from the year before. Not only that, it’s expected to increase annually by 3%, with a predicted market value of $258 billion by 2020.
The liquor mixture has been a battle for police for many years, but a lot of money could be made in this multibillion industry if this hood drink was to go mainstream
Currently the legal drinking age population is around 240 million, and the demand for alcoholic drinks is growing at a faster rate in emerging countries like India, China, Indonesia, and Singapore. There is a global market full of opportunities to take advantage of and since black culture is so sellable worldwide, who better to sell and benefit from this asset than those who created the culture.
Wholesale spirits sales reached $125.3 billion in 2018 and that same year Kool Aid owner Kraft Heinz’s (KHC -1.17%) net income declined 258% year over year. While Kool Aid is not one of Kraft’s top brands revenue generating brands, it is a common ingredient in alcoholic mixtures such as the Nutcracker signature drink. This can be a lucrative business proposition to present to a company that is struggling to stay relevant.
Situational Awareness: At one time moonshine was an illegal substance that was policed heavily, but eventually the spirit was accepted and produced by licensed distilleries. With proper certifications, permits and branding, the prosperity of the urban mixed alcohol venture looks promising. Something that may be a frugal delicacy can morph into a niche market that expands into a prominent multi-million dollar industry led by the same people that started from the bottom in their local neighborhood.
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