The CEO of Molson Coors (NYSE: TAP), Gavin Hattersley, hinted at upcoming hard seltzer innovations during the company’s most recent earnings call. TAP’s third quarter, which ended in September, featured strong performances by two of the alcohol beverage giant’s hard seltzer brands, Vizzy and Topo Chico. According to Hattersley, Molson Coors is planning “some really great innovation in both of our seltzers…some of which we’ve announced and some of which we haven’t.”
Vizzy and Topo Chico have helped solidify Molson Coors’ standing in the US hard seltzer and Beyond Beer categories. Now, as the categories mature, Hattersley insists the company will remain committed to growing the brands and ensuring they stand out in the oversaturated seltzer market, “But it’s important now, I think, in this new space in the seltzer categories, you need to drive strong brands with a clear point of difference. And that’s why our two seltzer brands grew more share than any other major brewer in the third quarter and why we feel so good about those two brands.”
Vizzy Hard Seltzer launched in the spring of 2020. Molson Coors has supported the brand with frequent innovations such as a Watermelon variety pack and a Lemonade variety pack, as well as a successful expansion into Canada–where it has quickly become a hit. In the US, Vizzy recently captured the #4 spot in the hard seltzer category. Hattersley did not explicitly mention what kinds of innovations consumers should expect from Vizzy in the future, although he did mention the brand has “lots of distribution runway available for it.”
Topo Chico Hard Seltzer, which Molson Coors has been producing, marketing and distributing for the Coca-Cola Company since the brand hit US shelves earlier this year, has also had an impressive quarter. Even though the brand is only currently in a handful of states, it has become the third fastest turning hard seltzer in the country.
Molson has already announced several future innovations the company has planned for Topo Chico. The brand is expanding into all 50 states as well as Canada, where TAP will continue to manage its distribution for Coke. The brand also has plans to launch globally throughout next year. Topo Chico Margarita Hard Seltzers will be debuting in 2022 as well. Even though Topo Chico’s expansion has been well executed thus far and its numbers have been strong, next year’s expansions will test the brand’s ability to stand out in the evolving hard seltzer market.
Hattersley said of Topo Chico, “[W]e’ve got the same innovation and Topo Chico coming in the pipeline next year as well. So…as I said, we’re working hard and we’re making real progress against our seltzer goals, and we love our differentiated brands that we’ve got in that space.”
Hattersley pointed out that Molson Coors boasts “the fastest-growing hard seltzer portfolio in the United States.” He stated that that the company currently controls 7.5% of the US hard seltzer market, according to IRI data, and “that’s despite limited distribution for Topo Chico and despite the fact that we are cycling about one percentage point for Coors Seltzer, now that we’re out of Coors Seltzer. And our ambitions just don’t stop at double-digit share, right?”
Will the innovations Hattersley alluded to during the company’s earnings call come in the form of new flavors, new products, expanded distribution or something completely different for Vizzy and Topo Chico? All eyes will be on Molson’s portfolio of spiked seltzer products as the company enters its fourth quarter.
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