Hard seltzer has lost its fizz: canned cocktails are all the rage now

USA | After enjoying a boom during the pandemic for their convenience and ease, hard seltzers are fading. They are being replaced by pre-mixed canned cocktails, which are made with a spirit and not with brewed alcohol.

Also known as ready-to-drink, or RTD cocktails, the canned drinks were the fastest-growing spirits category in the US in 2021, reaching USD 1.6 billion in revenue. That is a 42 percent increase from the year before, according to the Distilled Spirits Council of the United States, an industry body representing drinks companies. The market for canned cocktails still accounts for a relatively small percentage of total liquor sales – just 4.6 percent in 2021.

To compare, hard seltzers reached revenues in excess of USD 4 billion in 2021, but have since declined 5.5 percent, according to data from NielsenIQ, a market research firm.

Rearing to go

Because of canned cocktails’ rise in popularity, more beer companies are hopping on to the band waggon, churning out premixed versions of margaritas, pina coladas and daiquiris.

Molson Coors recently announced it is developing Topo Chico Spirited, a new line of canned cocktails made with spirits, like tequila and vodka, which will launch next year.

Over the summer, Heineken USA debuted the Dos Equis Margarita, a ready-to-drink, classic-style cocktail made with Blanco Tequila and lime juice.

The world’s largest brewer, AB-InBev, is also enjoying success with its foray into canned cocktails. The brewer announced in March it would expand its “beyond beer” portfolio through its acquisition of Cutwater Spirits from San Diego, California. Under the Cutwater brand, it offers a ranch water, a rum-based mojito and a vodka soda, amongst others.

Although AB-InBev has not given up on hard seltzers, it is now shifting its focus on to RTD spirits.

Hard seltzers hit their peak too soon

Boston Beer Chair Jim Koch already said in an interview last year that hard seltzer “wasn’t going to grow forever”. At the time, Boston Beer, which is known for Sam Adams beer, was forced to dump millions of cases of excess supply of its Truly hard seltzer, the biggest competitor of Mark Anthony Group’s White Claw, citing slowing sales across the industry. The company admitted it had “overbought” materials for its Truly hard seltzer.

Boston Beer launches Truly Vodka Seltzer

Never missing an opportunity, Boston Beer, together with drinks company Beam Suntory, introduced a line of RTD cocktails in March. In October, it followed with a canned cocktail under the Truly brand, which it called Truly Vodka Seltzer.

Adopting distillers’ usual shtick, Boston Beer says its cocktail is made with six-times-distilled (!) premium vodka and real fruit juice. Truly Vodka Seltzer will be available nationally in four flavours, including Blackberry & Lemon, Cherry & Lime, Pineapple & Cranberry, and Peach & Tangerine. This new vodka-based addition brings the Truly line-up to a mind-blowing 38 different flavours.

The 355 ml slim cans of Truly Vodka will retail at USD 9.99 for a 4-pack and USD 17.99 for an 8-pack.