It’s no secret that the hard seltzer industry is growing exponentially. As in the previous two years, the spiked and sparkling segment shows promise for sales growth in the second quarter of 2021.
Alcohol preferences traditionally start to shift in the second quarter. Temperatures begin to warm up and consumers celebrate a slew of celebratory holidays, take to outdoor barbeques, and visit the lakes, rivers, and beaches.
Folks are feeling particularly cooped up this winter thanks to local Covid-19 safety guidelines. As the weather permits more socially distant outdoor gatherings, expect an even bigger Q2 spike than usual as we enter the spring drinking holidays.
“Spring alcohol trends fall in line with holidays, major events, and warmer weather,” explains Brandy Rand, COO of the Americas at IWSR Drinks Market Analysis. “Traditionally, there’s a big uptick in Irish whiskey around St Patrick’s Day, wine buying for Easter, bourbon for the Kentucky Derby, and tequila for Cinco de Mayo as people gather for these occasions.”
Data provided by Drizly
suggests we will see an uptick in sales of warm weather beverages as outdoor gatherings continue to increase. Think easily portable drinks like hard seltzer, ready-to-drink (RTD) cocktails, canned sparkling wines, and of course beer.
“Major sporting events like March Madness and generally more outdoor gatherings are good for beer,” says Rand. Hard seltzer continues to occupy a growing share of the beer segment. In 2019, hard seltzer jumped from 6 percent of beer sales in Q1, to 11 percent in Q2.
Hard seltzer also jumped in Q2 sales in 2020, although the increase was less drastic because by then spiked and sparkling waters had already become an established choice in the beer category.
“This year, though the share gain may be less significant, hard seltzer will sure to be a key sales driver for retailers, particularly as product innovation continues in the category,” says Liz Paquette, Drizly’s head of consumer insights.
This year, Q1 saw the release of several prominent hard seltzer expansions, including new efforts from Truly, Michelob ULTRA, Bud Light Seltzer
, Mike’s Hard Lemonade, and more.
These drinks are ideal for outdoor gatherings – including the increasingly popular sparkling hard lemonade and iced tea categories. With so many exciting new options on store shelves, hard seltzer is primed to have a strong spring showing.
Expect RTD growth to continue into Q2 as well. Consumption has moved from on- to off-premise over the past year, fueling continued growth in pre-made cocktails. Even as bars and restaurants begin to expand hours and indoor seating options, the Bar of the Future
will undoubtedly include some of the new fan favorites.
RTDs represent an easy way to enjoy premium, expertly-mixed cocktails from the safety of home. And they come in sanitary
single servings.
“Ready-to-drink was among the hottest categories in 2020 in terms of sales growth, particularly within the single-serve offerings, which spiked in Q2 amidst changing spring weather and the Covid-19 pandemic,” explains Liz Paquette, Drizly’s head of consumer insights.
The category grew throughout the holidays and the New Year, and this growth is expected to continue into Q2.
“In spring 2021, we expect new entrants to gain share year-over-year as new product innovation and launches in the category increase competition and choice for consumers,” says Paquette.
Hard seltzers and canned RTD cocktails are the perfect portable potables for spring and summer. With so many exciting new options on the market, expect both of these segments to enjoy a strong Q2.
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