Just when grocers expanded space to accommodate a wide variety of craft beer, now they are struggling to find a place to stack hard seltzer. While 77% of the hard seltzer market is composed of sales from White Claw and Truly, diversity in the market is steadily climbing. 

Danelle Kosmal, VP of Beverage Alcohol Practice for Nielsen, told CNN Business in June, “Within the hugely successful and growing hard seltzer segment, new and ‘old’ brands alike can succeed even if their market share is relatively small or declining, because the total pool of sales of hard seltzer within US retail is growing at such a high rate.”

This increase in brand diversity may cause a dilemma for grocery stores looking to cash in on hard seltzer’s popularity. They have got to find room on their shelves to fit all of this seltzer. 

Hard seltzer sales have continued to be successful throughout the pandemic. Because of stay at home orders, people aren’t going out for cocktails as much. That doesn’t mean people aren’t still drinking cocktails, however. According to a 2020 consumer reports survey compiled by Drizly in June, more than half of respondents surveyed (52%) said that they are making more cocktails at home during the pandemic, while 54% reported that they will continue to do so beyond the summer season. 

What do cocktails have to do with hard seltzer? Well, hard seltzers fall under the “ready to drink” (RTD) alcoholic beverage category. Other beverages in this category include pre-mixed cocktails, wine coolers, hard lemonades and hard sodas. Evidence suggests that consumers are opting for RTD products to get their cocktail fill alongside liquor and cocktail items such as bitters. 

Being able to provide hard seltzers to consumers ready to drink means it is important that grocers provide space in their cold vaults for seltzer brands. Consumers look at hard seltzers as a convenience item. If a consumer doesn’t have the time to mix a cocktail, then they don’t want to wait for their hard seltzers to cool down at home. For hard seltzers then, the more convenient, the more likely a sale. Smaller brands will be scrambling to get their hard seltzers in coveted store fridge spots alongside White Claw, Truly and an increasing array from Big Beer. 

Will grocers make permanent room for hard seltzers in their fridges and toss out other categories as summer comes to a close? Some have made comparisons to the hard soda category which quickly fizzled out of popular favor with consumers. However, hard seltzers have an important edge over hard sodas — they are low sugar, low carb and low calorie. 

Health and wellness are major concerns for the COVID-19-era alcohol consumer. Many gyms across the country remain closed. People aren’t going out as much, and they feel cooped up at home. Hard seltzers offer a “healthier” option with high convenience. 

These emerging trends raise the question of what should stay and what should go to make room for more hard seltzers in grocery store coolers. Craft beer sales are slightly down, with budget-conscience consumers turning to cheaper, well-established, domestic beer brands. 

As hard seltzer sales continue to grow, it seems inevitable that craft beer brands will be booted from grocery fridges in the near future. Craft beer producers may be able to temper losses by joining in on the hard seltzer band wagon, as many brewers are already doing.   

Stephanie Meade
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