Flavored offerings across several beer category segments are driving growth, according to Bump Williams Consulting’s most recent report.
“Flavors clearly stand out as a common thread when it comes to answering the question of ‘Where is growth coming from?’” Williams wrote. “Whether it jumps off the page like ‘Beyond’ Beer and RTD Spirits do below, or it lurks throughout the list of Top Growth Brands for any of the core category segments … the incremental contributions from flavor can’t be discounted, particularly as of late.”
The flavor-driven segments that posted the largest growth in dollar sales last year included hard seltzer (+11.4%), hard tea (+23.1%), hard kombucha (+31.2%), hard lemonade (+2.5%) and hard coffee (+12.1%), according to data from market research firm NielsenIQ that includes off-premise sales at chain and independent retailers for the full 2021 calendar year. All outpaced “core beer,” which posted a -4.8% decline in dollar sales for the same time period.
Several flavor-forward brands drove growth in both traditional beer and beyond beer last year, including Mark Anthony Brands’ Cayman Jack Margarita flavored malt beverage (+39.6%), Constellation Brands’ Modelo Chelada Mango Y Chile (+85%), Anheuser-Busch InBev’s Busch Light Apple (+278.8%), Heineken USA’s Dos Equis Lager with Lime and Salt (+3,905.9%) and Boston Beer Company’s Twisted Tea Original (+23.4%).
The beyond beer segments of the category have gotten increasingly crowded, Williams noted. Last year, nearly 300 beer category suppliers registered sales of beyond beer offerings and the number of beyond beer brands (1,300) and SKUs (2,000) both increased.
“Still, even with the massive influx of new suppliers/brands/SKUs, the ‘Beyond’ Beer landscape remained primarily a two-horse race between Mark Anthony and Boston Beer which collectively accounted for ~73% of all ‘Beyond’ Beer dollar sales in 2021 (41%, 32% respectively),” Williams wrote.
In the spirits category, ready-to-drink offerings “also multiplied exponentially” with more than 230 suppliers and “well over” 1,000 SKUs, Williams wrote. E. & J. Gallo’s High Noon Sun Sips accounted for nearly one-third of the segment, followed by Cutwater Spirits maker A-B, Beam Suntory, Monaco maker Atomic Brands and Diageo.
The RTD segment’s remaining roughly 220 suppliers account for the final third of the segment’s sales, including Dogfish Head, Fisher’s Island and Finnish Long Drink.