White Claw leads competitive seltzer market as brands chase reopening boom | WARC | The Feed
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White Claw leads competitive seltzer market as brands chase reopening boom
Already a huge hit before the pandemic struck in the US last year, sales of hard seltzers went into overdrive once lockdown kicked in. But, as life begins to return to normal and pubs and restaurants reopen, analysts are forecasting there will be plenty of fizz left in the market this summer. The result is that beverage brands everywhere are lining up to launch their own seltzer and join the party.
The US seltzer market was worth $500 million in 2018 and growing fast; but when the pandemic struck and bars and restaurants closed, people switched to buying seltzers by the caseload from grocery stores to enjoy at home, sending sales to over $4 billion last year.
- The boozy flavoured water drinks were especially popular at group gatherings – which didn’t happen last year, but look like making a return this summer in markets with high vaccination rates, such as the US. Some in the sector are forecasting seltzer sales of more than $8 billion over the next four years.
- White Claw and Truly are the most well-known brands in the US, guzzling around 70% of the market, other brands are launching seltzers at a rapid rate to outdo one another with ever-more exotic concoctions, such as “spikes seltzers” that contain rum or tequila and versions with antioxidants and even “hard coffee”.
- At the heart of the trend, though, is a marketing push that sells the drinks as “healthier” than alternative alcoholic beverages – every version makes great play on its packaging of its relatively low carb and sugar content. And, with an alcohol content of 5% for most hard seltzers, that’s about the same amount as a regular beer, and less than wine, or a cocktail. An added marketing bonus for brands is that hard seltzers seem to be equally popular with men and women.
“Wellness is the new luxury: the consumer mega trend for leading a more balanced lifestyle has invaded every other industry – be it wearables, activewear fashion, activity-based holidays – and alcohol is the last space to react.” Charlie Markland, founder of Bodega Bay Hard Seltzer
Sourced from the New York Times, Beverage Daily
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