Mark Anthony Brands (MAB) is rolling into summer with a focused plan behind White Claw, which boasts an even more dominant position in the hard seltzer segment.
Now in its ninth year, White Claw now holds around 70% share of hard seltzer dollar sales, and a 50% share of “total beverage-alcohol seltzer,” which is primarily White Claw and Gallo’s High Noon, MAB president David Barnett said.
Moving forward, the strategy is a simplified approach to White Claw built around “four key pillars:” its core hard seltzer portfolio (4% ABV), high ABV Surge (8% ABV), non-alc (NA) Zero Proof seltzers and cocktail-inspired flavored malt beverage (FMB) line ClawTails (7% ABV), Barnett explained.
With the more focused approach, MAB is in the process of phasing out the White Claw Refresher lemonade seltzer line, White Claw Surf line of mixed flavor seltzers and spirits-based White Claw Vodka + Soda.
“We’ve tried so many things over the years where what we’ve learned is at times there was more confusion than there was clarity, and we want clarity,” Barnett told Brewbound last week.
White Claw is the 7th largest brand family in Circana-tracked off-premise retailers (total U.S. multi-outlet plus convenience) year-to-date (YTD) through May 18, with more than $711.4 million in dollar sales (+1.8%) and volume, measured in case sales, declining 1%. The average case price of White Claw is up $1.15 YTD, to $42.26.
Those trends have decelerated in the latest four-week period (+0.6% dollars, -2.1% volume) and are down from the brand family’s 52-week trends (+2.4% dollars, -0.5% volume), the market research firm reported.
Nevertheless, MAB remains the fourth-largest, off-premise beer category vendor, with more $1 billion in sales (+0.8% YTD), while volume is down 1.7%.
With a belief that flavor offerings such as seltzers, FMBs and spirits-based ready-to-drink cocktails (RTDs) are the future of bev-alc and a “massive runaway to still win versus” the traditional mega categories, MAB is working toward its “next growth chapter on White Claw” with its simplified strategy. Here’s what that looks like.
MAB Rebrands White Claw 0% as Zero Proof
After 18 months of testing NA seltzer line White Claw 0%, MAB has rebranded it as White Claw Zero Proof, reformulated the liquid and refreshed the packaging to reduce consumer confusion with Surge, given their similar dark blue packaging.
Barnett admitted that MAB hasn’t “cracked” NA yet, but he believes the Zero Proof tweaks have better-positioned MAB moving forward. Zero Proof gives consumers a White Claw-badged product for occasions when they’re socializing without alcohol, he added.
“When … we have them taste it, the light bulb starts to go off for consumers, because it really does taste like our iconic Black Cherry flavor, for example,” Barnett said.
MAB is rebuilding distribution for Zero Proof and launching a new marketing campaign to drive awareness, trial and repeat “to build a real, meaningful pillar of our White Claw business,” Barnett said. That includes on-premise accounts with opportunities for mixed buckets of alcoholic and NA White Claws.
MAB ‘Bullish’ on High ABV Surge
MAB is “probably most bullish” on its high ABV portfolio, led by White Claw Surge and Mike’s Harder (both 8% ABV), Barnett said.
“Surge is growing 20-plus percent,” he said, adding that its core consumer base is young legal-drinking-age drinkers in college towns and cities. “Our [Mike’s] Harder business is the No. 1 high ABV product franchise out there, is flat and has really been the creator of high ABV over the last decade.”
YTD through May 18, Mike’s Harder family has generated nearly $17.2 million in dollar sales (+2.4%) and grown volume 0.3%.
Nostalgic Flavors Hitting with Core White Claw Consumers
Core White Claw is finding success with its grape and peach flavors, which tap into nostalgia for consumers, Barnett said.
“When you drink White Claw Grape, you have that sensorial flavor that’s in your head from all sorts of things that you’ve grown up around,” he added.
Barnett shared that 6-packs have become White Claw’s best trial package, and both grape and peach have been among the company’s top performers in the format. Peach, which launched two years ago, has performed so well that MAB has added single-serve cans and single-flavor 12-packs.
ClawTails No. 2 FMB Innovation So Far
After a month on the market, ClawTails is already the No. 2 FMB innovation of the year so far and the top-seller in some major retailers, Barnett shared. The “reception at retail” has been great with trial “through the roof,” he added.
ClawTails is available nationwide in variety 12-packs of four flavors – Strawberry Cosmo, Mango Margarita, Blackberry Mojito and Tropical Mai Tai – and 19.2 oz. singles of Mango Margarita and Strawberry Cosmo.