While the demand for the Truly brand may be waning, the hard seltzer category just received a jolt from a powerhouse brand. Boston Beer Co (NYSE: SAM) announced an alliance with PepsiCo (NYSE: PEP) to deliver HARD MTN DEW, with 5% ABV. The spiked version of the iconic soft drink will initially be offered in three varieties of original, black cherry and watermelon.
“We know that adult drinkers’ tastes are evolving, and they are looking for new and exciting flavorful beverages,” Dave Burwick, Boston Beer Company President & CEO said in a statement. The company produces Truly hard seltzer, which retains the #2 share in the hard seltzer category, behind Mark Anthony Group’s White Claw hard seltzer.
“For 80 years MTN DEW has challenged the status quo, bringing bold flavors and unmatched beverage innovation to millions of fans,” said Kirk Tanner, PepsiCo Beverages North America CEO.
This announcement comes less than three weeks after Burwick sent shockwaves in the category by proclaiming, “we overestimated the growth of the hard seltzer category.” It’s stock lost over 20% of street value in the subsequent 24 hours.
SAM stock currently trades at approximately $650, less than half the price of its 52-week high of $1,350/share.
Pepsi will form a new corporation for the distribution of the product, as it must carefully navigate the three-tier system of alcohol sales in the US.
The companies expect HARD MTN DEW products to be available for purchase in early 2022.
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