Spindrift Spiked launched in 2021 as a 4% ABV hard seltzer extension of a non-alcoholic fruited sparkling water brand. The product emphasized real-fruit credentials and a juice-tinged hue to differentiate from clear competitors and secured distribution in 34 states. Building a beverage-alcohol business required substantial resources, dedicated manufacturing and regulatory compliance. The broader alcohol category experienced declining hard seltzer demand while consumers increasingly favored no-ABV options and mocktails. Market expectations for rapid hard seltzer growth did not materialize; segment sales fell from $4.1 billion to about $3.037 billion in the referenced 52-week period.
Spindrift wasn't the only popular NA sparkling water brand to expand into hard seltzer, but it was the most visible to launch a hard offering without the support of a bev-alc partner. Topo Chico Hard Seltzer (Coco-Cola and Molson Coors) and now-discontinued Arctic Chill (Polar Seltzer and Mass. Bay Brewing, now Barrel One Collective) were both brought to market through licensing agreements between non-alc producers and brewers.
We quickly learned that building a beverage-alcohol business demands substantial resources and time due to the unique route to market, dedicated manufacturing requirements and necessary regulatory compliance, Spindrift wrote. Meanwhile, we saw the alcohol industry facing its own challenges first with a declining hard seltzer demand and broader consumer trends favoring no-ABV options, mocktails and more. Spindrift could easily be forgiven for wading into the segment when it did.
In 2021, Spindrift Spiked rolled out into a hard seltzer segment that topped $4.1 billion in off-premise sales the prior year, according to market research firm NIQ. However, hard seltzer's heights never materialized, and the segment's dollar sales have since cooled to $3.037 billion in the 52-week period ending August 13, according to market research firm Circana.
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