Ready-to-drink canned cocktail (RTD) brand Sauza Agave Cocktails, the first joint venture from Boston Beer Company and Beam Suntory, has been discontinued.
A Boston Beer spokesperson confirmed the news to Brewbound Friday, noting that the brand was not gaining the traction the two companies had hoped for.
Sauza Agave Cocktails, a line of Mexican-inspired 8% ABV RTDs, launched in March 2022 as a malt-based extension of Beam Suntory’s Sauza tequila brand. The brand was the first product out of a “long-term, strategic partnership” announced in July 2021. Through the partnership, Beam Suntory markets and advertises any offerings nationally, while Boston Beer produces and distributes the brands through its network of wholesalers, and controls local marketing.
Since the launch, the two companies have also released Jim Beam Kentucky Coolers, a 5% ABV flavored malt beverage (FMB) that began hitting shelves last month.
“RTDs are a fast-moving category, and our strategy includes the ability to quickly introduce breakthrough innovation that will resonate with consumers and what they’re looking for in RTD products,” a Beam Suntory spokesperson told Brewbound. “While we aligned with Boston Beer Company to sunset the Sauza Agave Cocktails line, we are excited about our other RTD offerings including our new Jim Beam Kentucky Coolers, which are now available nationwide.”
Sauza Agave Cocktails was the No. 22 new beer brand in NIQ-tracked off-premise channels in 2022, according to a January report from Bump Williams Consulting. The brand recorded $1.8 million in dollar sales at grocery stores in the 52 weeks ending December 24, below other 2022 FMB innovations through similar convergence partnerships such as Hard MTN Dew ($14.9 million) from Boston Beer and PepsiCo, and Jack Daniels Country Cocktails ($3.2 million) from Pabst Brewing and Brown-Forman.
FMBs continue to record exponential growth in off-premise channels, recording a +18.6% increase in dollar sales and +11.6% increase in volume in multi-outlet plus convenience channels in the 52 weeks, ending April 9, according to market research firm Circana. The segment was one of two in the beer category to record double-digit dollar sales and volume growth in the period, behind only non-alcoholic beer (dollar sales +21%, volume +10.4%).
Boston Beer will maintain its presence in high-ABV FMBs with Slingers Signature Cocktails, a line of single-serve, 8% ABV cocktail-inspired FMBs, announced earlier this month. The value-play brand will initially be available in three test markets – Pittsburgh, Cleveland and New Hampshire – with a focus on the convenience channel.