Wine coolers, Zima, Smirnoff Ice — those fads are over. But White Claw's emerging rivals bet that alcoholic seltzer has staying power.
Owned by privately held Mark Anthony Group in Canada, which also makes Mike’s Hard Lemonade, White Claw debuted in 2016 and commands 60% of the booming hard seltzer market. Stores sometimes run out of the drink — becoming “declawed,” as fans say — and the firm plans to expand production to keep up with demand.
Perhaps the strongest signal that White Claw won’t be a quick fad is that two of the world’s biggest brewers plan to roll out new hard seltzers to catch up. And for good reason: Much of the seltzers’ success is coming at the expense of light beers, White Claw and analysts said. U.S. retail sales of hard seltzers nearly tripled to $1.1 billion in the year that ended Sept. 7, giving the seltzers 2.8% of the total market for beer, flavored malt beverages and ciders, according to Nielsen. And that was after sales soared 165% the prior year.
The same trends have propelled sales of non-alcoholic seltzers and sparkling waters. SodaStream, an at-home gadget that can carbonate tap water, exploded in popularity early this decade. Seltzer brands such as LaCroix and Spindrift also have benefited from consumers’ shift away from sugary sodas in recent years.
“We really feel that trend is going to continue as we head into the fall and winter,” Gajiwala said. “About 55% of White Claw volume is coming from light beers, and those light-beer occasions exist year-round.”
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