How Hard Seltzer Brands Are Breaking Through the Noise

Ever since the hard seltzer summer of 2019, alcohol and beer brands big and small have been clamoring for a sip of the category’s success. Off-premise sales of hard seltzer—drinks purchased at a retail store or through an app rather than at a bar or restaurant—grew $2.4 billion from the end of summer 2019 through summer 2020, according to Nielsen. And 95% of that growth came from just five brands: White Claw, Truly, Bud Light Seltzer, Corona Hard Seltzer and Vizzy. No label appears to be able to catch Mark Anthony Brands' White Claw, the first hard seltzer to rise to popularity last year. Its dominance hasn’t slipped, even amid a monthslong internal restructuring in the marketing department. (Due to that restructuring, White Claw declined to comment for this story.) But the race for second place is on. As new seltzer brands arrive on the scene, they have to go beyond pitching the foundational appeal of the drink (refreshing, low calorie) and push compelling points of difference to win over consumers for the long haul. “[The] opportunity is going to be looking at demographics and figuring out lifestyle overlaps and opportunities to appeal to certain demographics—and subdemographics—that are buying this,” said alcohol branding expert and owner of CF Napa Brand Design David Schuemann. He added that brands that lean in to the key benefits of hard seltzers, like perceived healthiness when compared with beer or sugary cocktails, are also likely to win out as the category continues to expand. Anheuser-Busch bet big on hard seltzer with five brands to date: Bon Viv (originally SpikedSeltzer, the first hard seltzer), Bud Light Seltzer, Natural Light Seltzer, Social Club Seltzer and, most recently, Michelob Ultra Seltzer. Each of its brands targets a subdemographic—a strategy that Anheuser-Busch hopes will allow it to continue to expand its reach within the category. Lana Buchanan, the company’s vp of beyond beer, said most seltzer consumers fall into one of two main groups: drinkers who are trying seltzers for the first time and drinkers who have already fallen in love with the product and are looking for a more interesting flavor or occasion-specific beverage. For example, Bud Light Seltzer serves as a “point of entry” for a set of consumers that’s already familiar with the Bud Light brand and is interested in seltzers, said Buchanan. For Natural Light Seltzer and Michelob Ultra Seltzer, a similar logic holds. But a dedicated seltzer drinker who’s looking for something new might be more interested in branching out toward the botanical flavors of Bon Viv or the cocktail-style offerings of Social Club. Social Club recently hosted tastings in barber shops and co-working spaces in Phoenix, gearing its marketing toward a masculine audience. Through Bon Viv and Social Club, Anheuser-Busch is focusing on older millennials—Bon Viv is targeting women in their 30s, and Social Club is aiming for men in the same age group. Meanwhile, White Claw has successfully catered to younger consumers of all genders. Overall, Nielsen reports that hard seltzers have broad appeal across genders and age groups—consumers tend to be more affluent drinkers between 21 and 44. A summer survey from Drizly indicated that Gen Z continued drinking it at the highest rate this year. For Bud Light Seltzer (and its new higher alcohol content Platinum version), Anheuser-Busch tapped into social media, piggybacking off Bud Light's more than 50 partnerships with sports teams and leagues. Bud Light Seltzer is the only brand in the category that has had an increase in mentions since summer wound down. From mid-August to Oct. 5 the brand saw a 13% jump in mentions, according to social media analysis firm Talkwalker. How the Claw Became the Law While White Claw wasn’t the first hard seltzer to market, it might as well have been. The White Claw brand’s viral popularity has driven the growth of the entire category. Nielsen reports that White Claw accounted for 63% of hard seltzer’s total growth in a 13-week period prior to the pandemic. While that lead slipped to 43% of category growth this summer as new brands proliferated, overall hard seltzer growth only accelerated amid the pandemic, with White Claw perpetually leading the way From a branding perspective, “they got a lot of things right,” said Schuemann. To start, the name was “brilliant,” he said. “White” invokes something refreshing and light, while “claw” sends a strong, hard message. “The play of that, it’s so easy to remember,” he said. The packaging, with its spray of water and sporty feel, manages to stand out without polarizing consumers. And as the first to garner serious demand for the category, White Claw was able to establish itself as something different from any other option at the store, simply through placement, said Schuemann, aiming for end caps and out-of-the-aisle displays. White Claw also “tastes really good compared to a lot of the competitors,” said Schuemann, which of course plays a key role in a brand’s staying power. Many of the newer brands are still trying to discern the right amount of sugar, alcohol and calories for their products, while White Claw is ahead of the curve, expanding its flavors. Molson Coors has also expanded its hard seltzer options this year, launching Vizzy in April and Coors Hard Seltzer in September. The company recently announced that it will manufacture, market and distribute Topo Chico Hard Seltzer next year through a partnership with Coca-Cola. Vizzy aims to attract consumers through an authentic, tongue-in-cheek approach that acknowledges how crowded the category is. “Another hard seltzer?” its ads ask. “Yeah, but we’ve got antioxidant vitamin C." While Coors Seltzer contains the name of a 147-year-old beer, it’s not relying solely on its fan base. Instead, it has woven an environmental purpose into its brand, promising to restore 500 gallons of fresh river water for each 12-pack purchased, which it accomplishes through a partnership with environmental program Change the Course. With that mission, Coors Seltzer hopes to win over Gen Zers who care about sustainability. “We're making it very easy for consumers to pick a seltzer and do good,” said Elizabeth Hitch, Molson Coors’ marketing director for hard seltzers. Truly, The Boston Beer Company’s popular contribution, has positioned itself as the sophisticated seltzer, expanding its flavors and introducing a sweet spinoff in Truly Lemonade. “The rising tide of hard seltzer is going to be good for everybody, and what we want to do is play our own game,” said Truly vp of marketing Don Lane. To do that, Truly has invested in colorful artist collaborations, which it showcases in limited-edition packaging, a sponsorship in the NHL and a partnership with spiked ice cream brand Tipsy Scoop. It also launched a Pride campaign in June elevating Black LGBTQ voices, which helped Truly define itself as an inclusive brand. The category can't grow forever, but there's still a lot of momentum and many consumers have yet to commit to one preferred brand. Drinkers seem to enjoy testing out the new options, meaning that for marketers, the hard seltzer wars aren't over yet. DoorDash and White Claw Are Among the 20 Fastest Growing Companies

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Hard Seltzer Brands Emphasize What Makes Them Unique to Stand Out in a Crowded Space

With more than $1.1 billion in growth since last summer, the category's popularity has no end in sight

Kathryn Lundstrom

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Kathryn Lundstrom