Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Beer

2019 Beer Report: Hard seltzers fuel growth within flavored malt beverage market

Beer sub-segment now commands 2-point share of US beer sales

By Jessica Jacobsen
2019 Beer Market Report - Flavored Malts - Vive Hard Seltzer - Beverage Industry
Hard seltzers have surpassed hard ciders in terms of share of the beer category. Based on IRI data, hard seltzer now account for a 2 point share of the beer market, IRI’s Patrick Livingston says. (Image courtesy of Braxton Brewing Co.)
March 14, 2019

Calorie-counting fanatics often can be heard telling new recruits not to forget alcohol when adding up their daily calorie consumption. As beverage alcohol manufacturers seek out ways to provide a low-calorie solution, it seems as though the latest craze to hit the flavored malt beverage (FMB) segment is fulfilling that need state.

“Hard seltzers are raising the bar around perceived health and wellness and attracting much of the dollars spent in the space,” says Brian Sudano, managing partner for New York-based Beverage Marketing Corporation (BMC).

Sudano adds that the perception of lower calories and the “better-for-you” halo have been driving innovation in the segment.

Tracking FMBs as part of the ready-to-drink (RTD) mixed spirit production market, Chris Lombardo, lead industry analyst for Los Angeles-based IBISWorld, details the impact that health and wellness is having on these products.

2019 Beer Market Report
  • Read the rest of the 2019 Beer Market Report
  • Read the archives

“RTD spirits are a close substitute for beer and wine; therefore, industry demand is linked to the fluctuating popularity of other types of beverages,” he says. “Although research has been published suggesting the potential cardiac benefits of moderate wine consumption, RTD spirits do not show any potential health benefits. However, the industry has gradually increased its appeals to the health-conscious consumer by making lower-calorie drinks, cocktail blends and recipes.”

When it comes to success within the FMB segment, Patrick Livingston, director of client insights for beer, wine and spirits for Chicago-based Information Resources Inc. (IRI), highlights four main product attributes.

“We see that lightly flavored products do very well; we find that products with lower calories do very well; also lower sugar; and brands that are social or create a social opportunity,” he explains. “Generally lighter products that are more social-able tend to be doing very well in the flavored malt beverage segment. I think that we can group a lot of those products together into what we’re calling the hard seltzer sub-segment.”

Top flavored malt beverages

(Brand family)

  DOLLAR SALES % CHANGE VS. PRIOR YEAR CASE SALES % CHANGE VS. PRIOR YEAR
Smirnoff $341,279,205 14.8 9,674,574 16.3
Twisted Tea $323,631,885 21.8 10,087,575 19.8
Mike's Harder $303,274,280 11 9,040,109 9.7
Mike's Hard $265,205,086 -3.1 7,361,188 -4.9
Bud Light Lime PAB $252,532,954 -15.2 7,726,731 -10.6
Redd's $230,745,912 -18.7 7,023,993 -20
White Claw Hard Seltzer $194,505,683 241.7 5,846,976 251.5
Four Loko $145,348,604 -5.4 4,149,862 -7
Truly Spiked & Sparkling $131,439,528 178.8 4,144,246 199.8
Steel Reserve $70,708,453 18.2 3,090,397 18.9
Total sales* $2,555,899,775 10.7 76,352,763 12.2

*Includes brands not listed.

Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending Dec. 30, 2018.

Livingston explains that hard seltzers achieved a 2 point share in the U.S. beer category in 2018, based on IRI-measured channels. “That actually surpassed the cider segment, which has 1.8 share points using the same share point,” he says. “Hard seltzers also make up a third of total FMB sales, so we believe that hard seltzers are having a major impact on the FMB segment, and we also believe, as we are watching these products very closely, these products are beginning to form what appears to be a distinct segment.

“Hard seltzers are bringing flavor into the better-for-you space, which is an important cross section [that] we are finding today,” Livingston continues. “Consumers are demanding products that are better for them, fewer calories, fewer carbs, better ingredients and they’re also looking for flavor. With hard seltzers, we do believe that this segment and these brands are delivering on this cross section, which is products that are slightly better for you but also products that are bringing you flavor and taste that can be enjoyed as well.”

Within hard seltzers, three brands posted triple-digit growth for the 52 weeks ending Dec. 30, 2018, in total U.S. multi-outlets with convenience stores. Those brands are White Claw, a brand of Mark Anthony Brands Inc., with 251.5 percent volume growth; Truly Spiked & Sparkling, a brand of The Boston Beer Co., which grew nearly 200 percent in volume; and Spiked Seltzer, a brand of Anheuser-Busch InBev, which posted a case sales increase of more than 145 percent.

Hard seltzers also seem to benefit from its broad appeal since the sub-segment shows roughly a 50-50 share when it comes to male versus female consumers, Livingston says. “It may drive back to the socialization of the ability to appeal to a mixed group and more social occasions where there is a mixed group involved,” he explains. “Therefore, creating an opportunity for both male and females to enjoy the product.”

Although hard seltzers have been a growth driver for FMBs, Livingston notes that it is not the only sub-segment helping the market.

“If we remove hard seltzers from FMBs, the segment is still growing without hard seltzer, which is good to know,” he says.

For instance, the top three brand families — Smirnoff, Twisted Tea and Mike’s Harder — each posted double-digit growth in terms of dollar sales for the 52 weeks ending Dec. 30, 2018, according to IRI data.

BMC’s Sudano also highlights the numerous attributes contributing to the FMB market’s success.

“[The] amount of innovation in [the] category continues to accelerate; better product line segmentation from major players like Diageo; improved control over SKU management at retail; [and] higher alcohol alternative in FMB format as offered by Four Loko,” he says. BI

KEYWORDS: beer market report flavored malt beverages (FMB) hard seltzers progressive adult beverages

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Jess 200

Jessica Jacobsen, editor of Beverage Industry, visits a range of beverage companies for cover stories and facility tours, represents the magazine at trade shows and industry events, and works with the Beverage Industry team to determine the content and direction of the magazine and its online components. She earned a Bachelor of Arts in Journalism from Marquette University.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Alternative Drinks
    By: Lauren Sabetta
  • Younger generation displays unique habits when it comes to beverage consumption

    Generation Z shakes things up in beverage

    Experts share that Gen Z is changing the standard on what...
    Beverage News
    By: Chloe Alverson
Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Anheuser-Busch Brewing Futures

Anheuser-Busch announces $300 million investment in US manufacturing

PepsiCo + poppi

PepsiCo completes acquisition of poppi

Alani Nu

Alani Nu surpasses $1 billion in retail sales

Vote for your favorite new product

Have your say in what makes it to the top this month!
Vote for your favorite new product and help us celebrate excellence.


VOTE NOW!

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

June 5, 2025

Heat-Resistant Molds 101: Fundamentals and Prevention Strategies for Better Beverage Quality

Learn about the spoilage challenges and operational bottlenecks that ascospores can pose to your quality program if detection is delayed, or worse – not detected at all. Subject matter experts will cover the basics of these bugs and real-world impacts of insufficient quality methods to help you beat the heat … resistant mold.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Lytt FMB

    LYTT Malt Beverage

    See More
  • Cape Line Sparkling Cocktails Logo

    MillerCoors debuts sparkling cocktail line

    See More
  • Wild Leaf Craft Hard Tea

    2020 Beer Report: Hard seltzers drive growth in flavored malt beverages (FMBs)

    See More
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing