Two Roads Breaks Into Spirits-Based RTD Segment with Daybreaker Vodka Cocktails

Unlike the narrator in the Robert Frost poem from which it takes its name, Two Roads Brewing is doubling back and venturing down a new road.

The Stratford, Connecticut-based craft brewery has launched Daybreaker, a family of ready-to-drink, vodka-based cocktails, available in three flavors: Blood Orange, Cran-Lime and Meyer Lemonade. All three are mixed with real fruit juice and vodka distilled at Two Roads’ Area Two research and development space.

“The juice character is all real fruit juice, not any flavorings or processed flavors as seems to be the norm with RTDs — or a lot of them anyway — or with seltzers,” master brewer Phil Markowski told Brewbound.

Each 12 oz. can of Daybreaker checks in at 7% ABV and contains about 2 oz. of craft distilled vodka, fruit juice and sparkling water. One can is nearly equivalent to a cocktail prepared by a bartender when ice melt is factored in.

“It’s about convenience, it’s about portability, you take the cocktail wherever you go,” Markowski said. “We do anticipate they will have tremendous appeal over the summer.”

Daybreaker, which began rolling out last month, is sold in 4-packs in a territory that is “just a little bit smaller” than Two Roads’ 17-state footprint, Markowski said. So far, the craft brewery has not had to seek out different wholesalers to sell the product, as most in its network are licensed to sell spirits-based products.

Two Roads aimed to strike a balance between classic cocktails and modern flavors.

“The cranberry lime is inspired by the Cape Codder, and I think it is fair to say it’s very much a Cape Codder,” Markowski said. “But the blood orange was modeled after an updated version of the classic screwdriver.”

Meyer Lemonade, in Markowski’s view, is “several steps or notches above the hard lemonade concept.”

Daybreaker isn’t Two Roads’ first foray into the $8.5 billion ready-to-drink segment, which includes hard seltzer. The company launched H2Roads Craft Hard Seltzer in 2019; similar to Daybreaker, it contains real fruit juice, which gives it color, rather than the standard clear liquid of most other hard seltzers. H2Roads is available in the brewery’s full distribution footprint.

With vodka distillation for Daybreaker under its belt, Two Roads will turn its attention to other spirits, including gin, whiskeys and rum, which will be sold on-site.

“We’re a brewery, so we’re in a particularly good position to produce malt whiskies,” Markowski said. “That’s something we intend to get into as soon as we fully develop the gins and vodka is all set to go. And then we’ll probably start playing around with rums as well, and bourbons and probably rye whiskey. So we’re gonna go the gamut with the distillery.”

2020 Recap & Distribution Updates

In 2020, Two Roads produced 53,000 barrels, a decline of about 14.5% from the 62,000 barrels it produced in 2019, according to data from the Brewers Association (BA). Nevertheless, the brewery still moved up three places, to No. 44 in the BA’s ranking of the top 50 craft breweries by volume in 2020.

Two Roads recently began distributing in California, about a year after originally planned, due to the COVID-19 pandemic’s shutdown of bars and restaurants.

“Our launch was supposed to be about a year ago right now, so that got derailed obviously,” Markowski said. “We haven’t done a proper launch in California, which was an expansion market for us.”

The brewery is also “high-spotting” products in Minnesota and Nevada, and “kicking tires” in Michigan to decide if it wants to pulse products there as well, Markowski said.

In addition to California, Minnesota and Nevada, Two Roads products are also sold in Colorado, Connecticut, Delaware, Massachusetts, Maine, Minnesota, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia and the United Kingdom, according to the brewery’s website. Still, Two Roads pays close attention to its home market.

“We put effort in equally in every state, but we have six sales reps in Connecticut, versus one or two in or three in other states,” Markowski said.

Core Beer Innovation

In addition to Daybreaker, Two Roads has continued beer-centric innovation with a rotating IPA series, the most recent iteration of which has been Hay-Z-Boy IPA, a 7% ABV hazy IPA.

“That’s gotten a very good reception,” Markowski said. “We’ve done two releases of that thus far.”

Another forthcoming IPA is Tubular, which the brewery plans to launch in August. It’s a West Coast-style IPA that Markowski said will go “back to the old school of clear, high bitterness, obviously high hop character in flavor and aroma.”

Just before the pandemic disrupted the beer industry last year, Two Roads released Cloud Sourced IPA, a hazy IPA in 12 oz. cans, and Wee Demon IPA, a 95-calorie IPA.

“We haven’t had time to properly push those brands, but they’re doing well,” Markowski said. “We’re looking forward to getting out there where there’s more in-person tasting to get back to that point where we can push these products.”

The brewery is taking a wait-and-see approach to the on-premise channel as bars and restaurants begin to reopen.

“It’s still an unknown — how many places will reopen — and it’s also unknown that people are going to be totally comfortable going out,” Markowski said. “I think it’s clear that not everyone will, so there’s definitely going to be a reduced demand.

“We’re approaching it cautiously and watching closely what distributors are ordering and will continue to do so, since there are still so many unknowns out there,” he continued.

Contract Brewing

Two Roads has a robust contract brewing business, which did not take on any new clients last year due to the pandemic, Markowski said. For its existing partners, “draft demand went down to virtually nothing.”

“We normally run two can shifts, five days a week, but we found ourselves running six days a week,” Markowski said.

Before the pandemic, contract brewed batches would be split between 30-40% in kegs and the remainder in package. Now, nearly 100% of contract brewed batches of beer are being canned.

Last year, Two Roads produced about 68,000 barrels for its contract brewing partners.

At-the-Brewery Sales & Pandemic Pivots

Two Roads is welcoming guests at its two taprooms Thursday to Sunday; reservations are required and parties are limited to 90 minutes. While Connecticut has removed capacity limits, tables must be six feet apart, meals are required with alcoholic beverages, and all service must stop at 11 p.m.

With space required between tables, Markowski estimated that Two Roads’ 200-person tasting room’s capacity is cut by about 50%.

One pandemic pivot that Markowski is hopeful will stick is curbside sales.

“The curbside sales have been very nice,” he said. “To-go beer sales where people place their order and in advance, they can prepay and they come pick it up — I think people enjoyed that aspect of COVID, if they enjoyed anything about COVID.”