Soft drink companies are venturing into alcoholic beverages, while alcohol companies are incorporating soft drinks.
During 2020, the consumption of non-beer alcoholic drinks increased by 2%. With more people staying at home due to pandemic lockdowns, there was a rise in experimentation with drink mixing. Sales of pre-canned alcoholic beverages, particularly carbonated ones like hard seltzer, experienced a noticeable surge. Recognizing the shifting trends, both ends of the beverage industry, non-alcoholic and alcoholic, are converging towards each other’s sectors.
“There’s a growing trend of premium investments in ready-to-drink canned products in coolers, leading to renewed growth,” mentioned Barclays analyst Lauren Lieberman at Beverage Digest’s “Future Smarts” virtual conference held recently.
Amid health concerns, the consumption of regular soft drinks has been on a gradual decline in recent years. In contrast, the consumption of alcoholic beverages remains robust, prompting soft drink manufacturers like PepsiCo to enter the alcoholic market. In August, PepsiCo announced a collaboration with Boston Beer to produce alcoholic Mountain Dew beverages, swapping the brand’s caffeine content for 5% alcohol. On the flip side, alcohol producers such as Budweiser are introducing cola and orange soda flavors to their existing line of hard seltzers to enhance taste appeal.
Major non-alcoholic beverage players Coca-Cola and PepsiCo are moving into alcohol, while beer brewers are expanding into hard soda and spirits.https://t.co/YfGLe9oLxE
— Tony Glover (@GloverLawFL) December 28, 2021
“Given that a significant number of seltzer enthusiasts also consume soda, we believe Bud Light Hard Soda is an ideal fit for both seltzer and soda fans,” explained Andy Goeler, vice president of marketing for Bud Light.
“It’s not just beer competitors, but also non-alcoholic rivals like Coca-Cola with Topo Chico,” stated Pernod Ricard North America CEO Ann Mukherjee. “The boundaries are blurring, and consumers are the ones blurring those lines, allowing a wider range of unconventional companies to enter the market.”
