Constellation Brands (NYSE:STZ) and Anheuser-Busch InBev (NYSE:BUD) are newcomers to hard seltzer, but are using the heft of their legacy beer brands to edge out the category’s first movers.
Both brewers launched hard seltzers in early 2020, just in time for the at-home drinking boom caused by the pandemic. By splashing their seltzer cans with the familiar Corona and Bud Light names, Constellation and AB InBev are appealing to consumers who have an established relationship — or at least knowledge of — their products, building on years of marketing their beers.
Bud Light also has been constantly rotating its roster of flavors through seasonal variety packs, introducing more adventurous assortments than just lime, grapefruit and cherry. The company’s summer variety pack accounted for 3.5% of market share in the category alone, pushing the company to announce Tuesday that it will become a permanent staple.
Bud Light’s and Corona’s entry into hard seltzer follows years of declining beer consumption in the U.S. Last year, overall beer volume declined 2.8%, despite total alcohol consumption increasing by its highest rate in nearly two decades, according to industry tracker IWSR. Brewers have adapted to the shift in consumer preferences by moving into new categories and doubling down on beer segments that are actually seeing growth, like no-alcohol beer.
On the other hand, consumption of hard seltzer surged 130% in 2020, according to IWSR.
STZ shares docked $1.64 to $221.15, while those for BUD fumbled 64 cents, or 1%, to $62.31.
Related Stories
