Manufacturers compete in the field of hard soda

Several large beer companies, such as Mosen Kang Sheng, Heineken and Anheuser-Busch InBev, have joined the ranks of strong sodas. Mosenconson recently invested $100 million in the expansion of RTD hard soda, and its Proof Point hard soda (5% alcohol content) is now available in 27 states.

To differentiate itself, the brand uses four different spirits-vodka, rum, tequila and whiskey-mixed with lime juice, mango pineapple juice, blackberry lemon juice and grapefruit juice . This soda has a natural turbidity, no sugar, 100 calories and zero carbohydrates.

In January 2020, Bud Light Seltzer with an alcohol content of 5% began to appear in stores nationwide. A year later, Anheuser-Busch InBev announced the launch of another hard soda: Bud Light Seltzer Lemonade. The company said that this product contains 100 calories and less than 1 gram of sugar. Anheuser-Busch InBev quickly became one of the top innovations in the entire category and even the brand's history.

IRI stated that Bud Light Seltzer was named the first new product leader (NPP) in the entire food and beverage consumer packaging product category in 2020, which is the 26-year history of the market research company’s NPP report. Won the first place for the first time.

There is no shortage of new product innovations in the hard soda category. For example, the market share leader White Claw holds 51% of this category, and it has launched two new innovative products. Including White Claw Hard Seltzer Surge, this soda water has an alcohol content of 8% and comes in blood orange and cranberry flavors.

NielsenIQ pointed out that there are currently more than 120 manufacturers competing in the field of hard soda, and some manufacturers produce more than one brand. "From a brand point of view, 150 brands are competing for the market share of hard soda, and this number is growing every day. Hard soda is a winning field and the only market where beer/FMB/cider has grown so far this year. ."

Experts said that in the first half of 2021, hard soda accounted for 23% of the beer category, higher than 19% in the first half of 2020 and 9% in the first half of 2019.

In the hard soda market that was once dominated by a few brands, small brands are also expanding their market share. Given the proliferation of soda brands, market analysts suggest that it is crucial to differentiate on the shelf through bold flavors and distinctive packaging.

"Truly is a good example. It started to innovate on platforms with different flavors such as lemonade and iced tea. It ranks second on IRI's new product list, which further proves this. Bud Light Seltzer and Corona Hard mineral water is also moving in this direction, introducing lemon-flavored hard soda water."

According to IRI, the retail sales of hard soda are expected to exceed US$5.1 billion in 2021 due to continuous innovations in flavors and formulas, and convenient RTD packaging. From 2022 to 2024, the annual growth rate is expected to be high in single digits. Grow to the low double digits.

BMC concluded that the explosive growth trajectory of hard soda is unique. "Since the light beer in the 1980s, the alcoholic beverage market has not seen such rapid and sustained high-level growth. Alternatives to traditional beer, wine and spirits have existed for decades, while hard sodas have emerged. But this trend has become popular, and hard soda is the basis of this trend."