There is one fewer hard seltzer SKU for distributors and retailers to carry.  Molson Coors showed courage and swift action in responding to data in the young history of hard seltzer.  The brand extension positioning was problematic.

Molson Coors Beverage Company is pulling the plug on the Coors Seltzer brand extension just 10 months after its debut, according to a memo from the company.

The drink debuted in September of 2020, billed as the “seltzer with a mission.” Molson Coors pledged to restore 500 gallons of river water for every 12 pack sold, via a partnership with the nonprofit Change the Course.

Unfortunately, consumers didn’t buy into the company’s pitch of joining the world’s laziest volunteer program.

Trial and Error

Perhaps this is a natural adjustment to the market, which has continued to expand at a rapid pace in spite of the pandemic. Brands scrambled to fill the gaps left by on-premise sales in the face of local bar and restaurant closures.  Both Big Beer and craft brewers responded by introducing their own takes on hard seltzer and ready-to-drink (RTD) canned cocktails.

Molson Coors itself released a handful of different spiked seltzers and RTDs since Vizzy was released in April of 2020, including its new Proof Point. The timing, however, seems sudden, given recent developments from the brand.

The news comes weeks after Coors Seltzer released its fifth flavor and first seasonal variety – Orange Cream Pop – which hit the market in early June. Merely two weeks ago, the brand announced a new spiked ice cream collab with Tipsy Scoop.

Coors attempted to give away free cases of seltzer through several creative promotions during its time in production, including for this year’s Tax Day. The brand even tried to incept its pre-Super Bowl campaign into our dreams at the beginning of the year.

Focus on Vizzy, Topo Chico Hard Seltzer

Does this mean the end of the spiked and sparkling experiment for Molson Coors? Definitely not – the beverage company is shifting its focus to its more successful seltzers, namely Vizzy and Topo Chico, which it distributes via a partnership with The Coca-Cola Company.

Since its release in September, Coors Seltzer had a hard time differentiating itself in an increasingly crowded market. Vizzy is made with the superfruit acerola cherry, which contains vitamin C. Topo Chico hard seltzer was inspired by the iconic Mexican mineral water brand, which has been a favorite mixer of bartenders for years.

Collectively, Vizzy and Topo Chico command around 6% of the spiked and sparkling market.

Brand Identity vs Brand Extension

Molson Coors conducted an industry analysis which indicated that standalone hard seltzer brands tend to fare better than those spun off of traditional beer brands.

The segment’s perennial top two best selling seltzers, Mark Anthony Brand’s White Claw and the Boston Beer Company’s Truly, collectively enjoy around 75% of the market share.

“That’s why we’ve made the decision to discontinue Coors Seltzer in the U.S. and commit our energy, resources, material supply, and shelf space to Vizzy and Topo Chico Hard Seltzer,” the beverage company’s statement read.

The founder of Ashland Hard Seltzer warned beer makers about brand extensions.  In an exclusive interview with Hard Seltzer News, Josh Landan spoke to the importance of creating your own brand. “We’re not a brewery who’s also making a seltzer…I think fans of that brewery might drink it a little bit, but a big state-wide or national brand will never come from a brewery which is why the success has, you know…Truly while it’s Boston Beer is not Sam Adams Seltzer. It’s its own brand, right? And White Claw has nothing to do with Mike’s Hard Lemonade, and they’re stand-alone brands.”

Ironically, Landan sold Saint Archer Brewing to MillerCoors (now Molson Coors) in 2015.  “I think if a brewery just says, like, Saint Archer Hard Seltzer, nobody cares,” said Landan. “Just nobody cares. At least I don’t, anyways. If I want a hard seltzer, then I’ll buy an Ashland or something else. If I want a beer, then I’ll buy a Saint Archer.”

Molson Growth Strategy

Ultimately, hard seltzer is just one piece of Molson Coors’ Beyond Beer strategy. The company has also been making moves into spirits as well as energy and plant-based drinks.

“Obviously, there is more work to do,” said CEO Gavin Hattersley, speaking about Molson Coors as a whole. “But I think it’s going incredibly well when you consider the challenges that have been thrown at us.”

Erin Grafton
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