US beer sales are up this year but only thanks to spiked seltzers

USA | Off-premise beer sales are up in the low single digit percentages this year, according to market research firm IRI. But this is thanks to flavoured malt beverages, or alcopops made from malt, which are included in beer statistics.

The surge is led by Mark Anthony Brands, the producer of White Claw seltzer.

As vinepair.com reports, spiked seltzers are growing sales, while the country’s major beer brands are in decline.Between January and July, Bud Light dollar sales have dropped 5.4 percent (more than USD 150 million), Budweiser 4.5 percent (USD 45 million), and Coors Light 2.3 percent (USD 27 million). Heineken USA, Pabst, and Yuengling also saw losses.

However, craft beer dollar sales have risen 2.9 percent through mid-July, although the top five IRI-defined craft brands – namely MillerCoors’ Blue Moon, Sierra Nevada Pale Ale, Leinenkugel’s Shandy, Gambrinus’ Shiner Bock, and Lagunitas IPA – have all declined, according to the website.

The sales boom of spiked seltzers may just be seasonal, as consumers reach for light, sparkling alcoholic beverages during the summer months. The question is: Will White Claw’s devotees return to drinking Bud Light in the autumn? Vinepair.com’s commentator harbours doubts.

Instead of brushing off hard seltzers, a beverage category which seems to fly in the US only, brewers should take note: There is a market for easy-drinking, uncomplicated thirst-quenchers, and right now, consumers seem to spend their dollars on fruit-flavoured “bubbly booze water”.

Brewers like Boston Beer, Oskar Blues, Squatters, and Ninkasi have taken the cue and released their own hard seltzer brands. In the case of Boston Beer, more than 60 percent of the firm’s sales must be attributed to the Truly line of seltzers and other non-beer drinks, including Angry Orchard cider and Twisted Tea, an alcoholic iced tea. The Truly Hard Seltzer line alone represents about 30 percent of Boston Beer’s group sales.

Thanks to rising non-beer sales, Boston Beer has achieved a remarkable turnaround. After years of declining revenues, the brewer of Sam Adams beer has seen its share price more than double this year, and recently broke through the USD 400 per share threshold.

On 25 July, Boston Beer reported second quarter results. Its net revenue was USD 318.4 million, an increase of USD 45.3 million or 16.6 percent, from the same period last year. Net income was USD 27.9 million, an increase of USD 4.3 million from the second quarter of 2018.  

Vinepair.com concludes that it might be time for craft brewers to look beyond low-calorie lagers and ales into the clear, fizzy future.