Skinnygirl Margarita is a popular pre-made margarita brand created by Bethenny Frankel. It first launched in 2011 and became a hugely successful product. However, there have been rumors circulating that Skinnygirl Margarita may have been discontinued. In this 5000-word article, we’ll explore the history of Skinnygirl Margarita, look into recent claims that it’s been discontinued, and ultimately determine if the iconic low-calorie margarita is still being produced today.
The Creation of Skinnygirl Margarita
Bethenny Frankel first introduced Skinnygirl Margarita in 2011. At the time, Frankel was one of the breakout stars of Bravo’s hit reality series The Real Housewives of New York City. Capitalizing on her popularity, Frankel launched the Skinnygirl cocktail line focusing on pre-made low-calorie cocktails aimed primarily at women.
The very first product released under the Skinnygirl name was the Skinnygirl Margarita. Frankel worked with a flavor chemist to create a great-tasting margarita that was low in calories and used natural ingredients. The typical serving of Skinnygirl Margarita contains just 100 calories compared to the 150 calories found in a standard margarita.
Key Features of Skinnygirl Margarita
Some of the key features of Skinnygirl Margarita include:
- Low calorie – Just 100 calories per serving
- Natural ingredients – Does not contain high fructose corn syrup or artificial sweeteners/flavors
- Good taste – Formulated to offer a smooth, refreshing flavor
- Convenience – Sold in ready-to-serve bottles, no mixing required
- Gluten-free
Thanks to its combination of low calories and natural ingredients, Skinnygirl Margarita became an instant hit. It offered diet-conscious consumers a tasty and convenient pre-made margarita option.
The Success of Skinnygirl Margarita
Skinnygirl Margarita experienced remarkable success following its launch in 2011. Within the first few months, Skinnygirl cocktails gained distribution in thousands of grocery stores across the United States.
By the end of 2011, sales had far exceeded initial projections. According to Frankel, the Skinnygirl cocktail line brought in $10 million in wholesale orders within the first year. The Skinnygirl Margarita quickly became the brand’s most popular variety.
In March of 2011, just months after Skinnygirl Margarita launched, the Beam Global Spirits & Wine company acquired the Skinnygirl cocktail brand from Frankel for a reported $8.1 million. They cited the brand’s tremendous growth and potential in their decision to buy Skinnygirl. This acquisition helped skyrocket the brand’s distribution and sales.
Sales Milestones for Skinnygirl Margarita
Here is a quick look at some of Skinnygirl Margarita’s major sales milestones over the years:
| 2011 | Raked in $10 million in first year sales |
| March 2011 | Acquired by Beam Global for $8.1 million |
| 2012 | Reached over $50 million in retail sales |
| 2013 | Surpassed $75 million in retail sales |
As you can see, Skinnygirl Margarita experienced tremendous growth in the first few years following its launch. By 2013, it had become a major player within the RTD spirits market.
The Introduction of New Flavors
Given the early success of Skinnygirl Margarita, Beam Inc. began expanding the line starting in 2013. Several new cocktail flavors were introduced over the next few years, including:
- Skinnygirl Mojito
- Skinnygirl Pina Colada
- Skinnygirl White Peach Margarita
- Skinnygirl Sweet Tea Vodka
- Skinnygirl Sangria
While these new flavors gave consumers more variety, the original Skinnygirl Margarita remained the star player driving most of the brand’s growth. By 2015, sources estimated that Skinnygirl Margarita accounted for a whopping 98% of Skinnygirl’s total sales. Newer flavors were struggling to gain the same traction and popularity.
So while Beam Inc. expanded the product line, Skinnygirl Margarita was still very much the core of the Skinnygirl cocktail empire at this stage.
The Brand Changes Hands
In 2017, Beam Suntory sold the Skinnygirl cocktail brand to Corona and Svedka owner Constellation Brands for a reported $215 million. This was more than 25 times what Beam originally paid Bethenny Frankel for the brand in 2011.
Constellation cited Skinnygirl’s position as a leading ready-to-serve brand and its alignment with their strategy in female-focused brands as reasons for the acquisition. They seemed particularly impressed by the continued strength of Skinnygirl Margarita.
Under this new ownership, Skinnygirl rolled out some new packaging and marketing campaigns. However, the core Skinnygirl Margarita product remained unchanged. By all accounts, it was still performing very well under Constellation’s management.
Then in late 2018, reports began circulating that Constellation had discontinued Skinnygirl Margarita along with some other flavors. After over 7 years on the market, was the iconic low-cal margarita brand finally shutting down?
Rumors of Skinnygirl Margarita Being Discontinued
In October 2018, news broke that Constellation had made the decision to discontinue certain Skinnygirl products. According to insider sources, this included the original Skinnygirl Margarita flavor.
Apparently, orders for the pre-made margarita had halted at distribution centers. Stores had been instructed to sell through remaining inventory. Once stock was depleted, Skinnygirl Margarita would no longer be available for purchase.
Additionally, fans started noticing that the product seemed to disappear from store shelves in their local areas. Many took to social media to complain and lament the apparent demise of their favorite low-cal cocktail.
Throughout 2018 and 2019, Skinnygirl Margarita sightings became increasingly rare. Some die-hard fans did report being able to still find it in limited quantities in certain retail locations. Yet it was nowhere near as prevalent as it once was at the peak of its popularity.
By early 2020, most signs seemed to point to Skinnygirl Margarita being put out to pasture. So what happened?
Why Would Constellation Discontinue Their Top Selling Product?
On the surface, the decision to discontinue Skinnygirl Margarita seemed like an odd one. By all accounts, it remained far and away the best-selling variety for the Skinnygirl portfolio.
Even though growth had slowed compared to the early boom years, Skinnygirl Margarita was still producing good sales. It maintained a strong and loyal customer base who loved the convenience and taste.
So why would Constellation seemingly walk away from their most successful ready-to-drink product? Here are some potential factors:
Declining Sales and Loss of Market Share
While still the leader for Skinnygirl, growth for the Margarita flavor had begun flattening out. Constellation may have felt that sales had peaked and would continue trending downward.
Additionally, competing brands began eating into Skinnygirl’s market share within the RTD cocktail space. Newer entrants offered innovative flavors and packaging. In light of increasing competition, Constellation may have decided to cut their losses on the flagship Skinnygirl Margarita.
High Costs and Tight Profit Margins
Industry insiders suggested that the costs involved with producing and distributing Skinnygirl Margarita cut heavily into profit margins. The need to source ingredients, bottling, labelling, shipping, and marketing the pre-made cocktail incurred substantial costs.
As sales flattened, these costs likely became overly burdensome. Discontinuing the product may have been seen as an opportunity to improve overall profitability for the brand.
Shift in Corporate Strategy
When Constellation Brands acquired Skinnygirl in 2017, they were focused on growing their female-oriented brands. However, just two years later in 2019, Constellation sold off some of their wine brands to E. & J. Gallo.
This deal seemed to represent a shift in corporate strategy away from female-centric brands. With priorities changing, Skinnygirl Margarita may no longer have aligned with management’s vision for the future direction of the company.
Cannibalization of Other Skinnygirl Products
Despite efforts to expand the line, the original Skinnygirl Margarita still accounted for the vast majority of Skinnygirl’s sales. There may have been internal concerns that the margarita juggernaut actually cannibalized attention and sales from other products in the portfolio.
Discontinuing the margarita could have been seen as a strategy to force consumers to consider different Skinnygirl cocktail varieties and hopefully grow emerging brands.
The Return of Skinnygirl Margarita
Just as most had written off Skinnygirl Margarita as a thing of the past, surprising news dropped in early 2022. Multiple credible industry sources reported that Constellation was bringing back the iconic margarita flavor after a nearly 4-year absence.
Starting in Spring 2022, Skinnygirl Margarita returned to production and distribution. Before long, it was popping up again on store shelves much to the delight of fans who thought it was gone forever.
So what prompted Constellation Brands to resuscitate their best-selling Skinnygirl product? A few key factors:
Customer Demand
It became clear that consumer demand for Skinnygirl Margarita had not dissipated. Social media chatter increased from fans lamenting the disappearance of their favorite ready-to-drink cocktail. Many openly pined for its return.
This groundswell of customer demand likely motivated Constellation to reconsider their earlier decision to ax the profitable product. Bringing it back would be rewarded by eager customers flocking back to the brand.
Nostalgia Trends
Capitalizing on nostalgia is a major trend across the food and beverage industry. Iconic brands from the 90s and 2000s are being revived to leverage consumer sentimentality.
Constellation likely realized the nostalgia potential of a comeback for the pioneering Skinnygirl Margarita. After nearly a decade on the market, it had become part of pop culture and tapping into that could drive sales.
Growth of Ready-to-Drink Category
When Skinnygirl Margarita was discontinued around 2018, the ready-to-drink cocktail market was still fairly small. However, the category has absolutely exploded over the past few years.
With ready-to-drink alcoholic beverages now one of the fastest growing segments, it made sense for Constellation to bring back their most differentiated RTD product.
So thanks to this perfect storm of customer demand, nostalgia, and category growth, Skinnygirl Margarita has returned in all its low-cal glory.
Is Skinnygirl Margarita Here to Stay This Time?
Given the rollercoaster ride Skinnygirl Margarita has been on over the past decade, some fans still have doubts about its staying power. Could Constellation change their minds again and pull the plug?
Here are a few reasons why Skinnygirl Margarita is likely here to stay for the long haul this go around:
- Strong early sales out of the gate indicate pent up demand from consumers
- Nostalgia factor will continue driving interest and purchases
- Secular tailwinds of growing RTD category lifts sales prospects
- High customer loyalty ensures consistent repeat business
- Health and wellness trends play into Skinnygirl’s low cal positioning
Barring any unforeseen changes in strategy or disruptions to the ready-to-drink spirits space, Skinnygirl Margarita seems well-positioned for many more years of success. Constellation is unlikely to repeat the mistake of taking away a beloved product that still has so much equity and relevance.
Conclusion
After a wild ride on the brink of disappearance, the iconic Skinnygirl Margarita is back and seemingly here to stay. This pioneering low-calorie pre-made margarita has endured thanks to its great taste, convenience, and nostalgia factor.
While the brand has had its ups and downs over the years, Skinnygirl Margarita retains a loyal fan base thrilled to have it back on shelves. As the ready-to-drink cocktail segment continues booming, this slim version of a classic cocktail recipe is ready to thrive once again.