As Sierra Nevada plans to tackle what it calls craft beer’s No. 1 enemy, “The Vortex” – the self-perpetuating cycle of distribution losses that drive volume declines that beget more distribution losses – the brewery has built a multi-faceted innovation slate.
In 2027, the country’s second-largest craft brewery by volume will debut new brand families and new products to existing ones, its leadership shared with distributors during an annual business plan meeting last month at its brewery in Mills River, North Carolina.
Revisit prior Brewbound coverage:
- Sierra Nevada Arms Wholesalers With ‘License to Sell’ in Fight Against Craft Beer Declines; Refreshed Packaging to Roll in 2027
- Sierra Nevada Doubles Down on Core 4 Brand Families for 2027 Growth
Sierra Nevada’s innovation strategy revolves around three types of products, senior director of sales, operations and insights Aubrey Herbert said in a video presentation. They include:
- Consumer-led innovations, for which drinkers are clamoring;
- Productivity-led innovations that generate revenue;
- Portfolio-led innovations that fill a hole in the brewery’s product lineup.
The brewery’s lineup next year includes evolutions to its traditional craft beer offerings, as well as Sierra Nevada’s first meaningful foray beyond beer since Tea West hard tea, which it launched in 2021 but discontinued in early 2023.
Crafted by Sierra Nevada: Agua Azul and Shred Beer Soda
Agua Azul agave hard seltzer, which made headlines last month as the storied craft brewery’s largest departure from traditional craft beer, is the tip of the spear for the “Crafted by Sierra Nevada” line. The brand platform “extends Sierra Nevada’s reputation for quality into new beverage spaces, using a subtle brand presence to distinguish it from the core portfolio and to enable independent category exploration,” senior director of innovation Kyle Ingram told distributors.
“Products under this framework will not feature the traditional Sierra Nevada scroll logo, reinforcing separation from the core portfolio while maintaining that connection to Sierra Nevada’s reputation for craftsmanship and quality,” he continued.
Agua Azul began as a taproom offering at Sierra Nevada’s Chico, California-based brewery, then expanded to Mills River. The brewery has launched it in its breweries’ home markets and Sacramento, California.
“We were really deliberate with the design to be a more premium-based seltzer to reflect the care that goes into the ingredients and how that the team actually produces and makes this product,” chief growth officer Ellie Preslar told Brewbound. “We’re still starting small, and we’ve joked maybe we’re so late to seltzer, that we’re right on time.”
Agua Azul’s 7% ABV sets it apart from the mainstream hard seltzer segment that peaked in 2021, where the dominant brand (Mark Anthony Brands’ White Claw) checks in at 5% ABV.
“We’re not making a traditional seltzer,” chief brewing officer Brian Grossman told Brewbound. “We’re making something that we wanted to make, regardless of whatever the trends were.”
Sierra Nevada opted against entering the spirits-based, ready-to-drink (RTD) segment for several reasons. Licensing and equipment to produce them would add several layers of complexity, as would the requirements of Mexico’s Tequila Regulatory Council.
“If we would make the base – I tend to like to make everything ourselves – we couldn’t call it tequila, obviously,” Grossman added.
CEO Pryce Greenow called Agua Azul “some of the best packaging we’ve ever done.” The 46-year-old craft brewery only felt comfortable entering the hard seltzer space with a product that “bring[s] premium and craft feel” to the segment, he added.
“If we don’t come and think there’s a craft angle to it, it just doesn’t work, and we shouldn’t be doing it,” Greenow said. “The world doesn’t need another seltzer, so if we’re going to go and do it, let’s bring something new.”
In addition to single-flavor packs of Lime, Sierra Nevada is working on a variety 12-pack that includes Lime, Mango, Grapefruit and Pineapple, Ingram said.
The Crafted by Sierra Nevada mast also extends to Shred Beer Soda (4.5% ABV), the radler the brewery rolled out in brewery retail test markets in May. The style, which blends light beer and citrus soda, is popular in Europe but “has low awareness and comprehension here in the States,” Ingram said.
“We wanted to bring our modern take on the style and introduce it to a new generation of drinkers,” he continued.
“But why beer soda? Why now? Because drinkers’ tastes are changing,” Ingram explained. “They’re entering the category with a different set of taste preferences and expectations, and that’s exactly who Shred is made for – a new generation of flavor-first drinkers who aren’t actively rejecting beer, but also don’t subscribe to traditional beer flavors. They want big fruit flavor, light and refreshing, authentic beverages that are fun and modern.”
Shred’s test launch expanded to retailers in Southern California and North Carolina’s Raleigh-Durham area, selected for their high concentrations of legal-drinking-age Gen Z consumers, Ingram said.
A Shred variety 12-pack includes Grapefruit, Orange, Lime Ginger and Lemon. Grapefruit 6-packs were sold during the initial test.
Low- and Non-Alcoholic Portfolio
Sierra Nevada’s non-alcoholic (NA) portfolio includes the Trail Pass NA family, which rolled out two years ago, and Hop Splash sparkling hop-infused water, which the company launched in 2022. Both lines will introduce new offerings in 2027:
- Hop Splash Tangerine, featuring Tangier hops and tangerine juice;
- And a tropical NA IPA.
Go-Two IPA (2.8% ABV) rolled out in August in 12 oz. can 6-packs. Sierra Nevada is not referring to it as a mid-strength beer “because I’m told by my kids that mid is not necessarily a good thing, and there’s nothing mid about this beer,” Ingram said.
“We are taking a very different approach versus the other brands that you’re seeing enter this category,” he continued. “Rather than playing down to the ABV, we’re premiumizing it in both the brand as well as the liquid. Instead of diluting it down to reach the target ABV, we’re brewing it up to spec, which delivers a superior aroma, flavor, and most important, mouthfeel.”
Test markets include Arizona, California, Colorado, Georgia, Illinois, Kansas, Massachusetts, Maryland, Michigan, North Carolina, New York, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia and Washington.
Hidden Scroll Series
Sierra Nevada plans to extend its Hidden Scroll series in 2027, the craft brand family with downplayed Sierra Nevada branding (i.e. missing the iconic golden scroll). After a successful trial of West Ghost West Coast IPA (7.2% ABV), the brewery plans to roll out Boat Plane West Coast Pilsner (6% ABV) and Lava Lamp Double Hazy IPA (8.2% ABV).
All Hidden Scroll beers are available in 16 oz. can 4-packs and only available in about half of Sierra Nevada’s nationwide footprint, primarily in markets where the pack format performs well, such as the Northeast.
The brand family was “a big swing for us in terms of entering a craft segment that we previously had no presence in,” Ingram said. Hidden Scroll is “designed specifically to attract that drinker who’s not necessarily looking for Sierra Nevada in this part of the shelf.
“Rather, they’re attracted to cool artwork, new and exciting styles, and that small batch flavor,” Ingram continued.
Lava Lamp 4-packs were available for sale at Sierra Nevada’s taproom retail shop for $20 last month.