Wine and spirits producers have their eye on the growing hard seltzer market — and they want a share. Without a strict definition, wine and spirit based seltzers may begin to take up more shelf space next to traditional hard seltzer competitors in stores.

As of now, wine and spirit producers are still new to the hard seltzer market, and their profits reflect their novice.

Danelle Kosmal, Neilson VP of Beverage Alcohol Practice said, “When we’re talking about those spirits-based seltzers and the wine-based seltzers, they are much smaller. It’s less than $200 million annually right now.”

With that, there is room in the hard seltzer category for wine and spirits producers to grow. Luckily for these producers, Kosmal does not think consumers generally discern between traditional hard seltzers and wine or spirit-based seltzer options.

Kosmal said, “It’s shoved in a really similar place [and] it’s a lot of times very similar drinking occasions, [sic] so I think consumers aren’t really differentiating.”

While having products placed near other seltzers helps introduce hard seltzer drinkers to new brands, wine and spirits producers still have some work ahead of them.

“There is a difference in price and so that’s one of the biggest differentiators and ways that consumers would see the differences,” Kosmal explained.

So, while there is room for spirit and wine seltzers in the market, higher price points may hold producers back from making great traction. When higher priced options are placed next to similar lower price options, they tend to lose out. That is, unless, wine and spirit brands get to work setting themselves apart from traditional hard seltzers produced by big beer companies. Essentially, for higher price points to work, consumers must be convinced the product offers something more.

Creative branding may have to step in, emphasizing differences in quality of ingredients, calorie count, packaging, unique flavors and alcohol content. Craft beer companies may begin a similar transition, with craft brewers such as Founders branding their upcoming seltzers as “premium” products with superior ingredients. 

Despite the odds stacked against them, Kosmal expressed some hope for wine and spirit producers looking to carve their way into the market.

Kosmal said, “I think there’s huge potential for growth for them and I think we’re going to continue to see a lot of interaction here.”

Market research may hold the key for wine and spirit brands itching to enter the market with seltzer products. Luckily, more research is on the horizon at Nielsen.

“We’re putting together a new seltzer study right now,” Kosmal said. “It’s on our list to understand core traditional seltzer drinker[s] and how they’re purchasing the wine and spirit seltzers along with ready to drink cocktails, because I think that falls within that space too.”

Stephanie Meade
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