Hard seltzers poised for bullish global expansion, attracting “virtually every player” in beer, highlights Rabobank
22 Mar 2021 — Hard seltzers – pegged as the “success story of the US beer market” by Rabobank – are seeing an influx of consumer appeal. The Dutch bank’s latest report on this beverage segment highlights “massive levels” of innovation, significant marketing and capex investment, as well as some mergers and acquisitions activities. The category is still in its early days in Europe and Asia-Pacific, with “great potential for growth.” Following suit on the trend, Anheuser-Busch InBev released a Bud Light Seltzer for a healthier positioning, while Leinenkugel’s debuted a beer-seltzer hybrid called the Spritzen in three fruit-inspired flavors.
“We expect significant sales growth in the US hard seltzer market, and could see this category reaching 20 percent of total beer over the next five years,” says Jim Watson, senior analyst – beverages for Rabobank in New York, US. “Predictions from the industry are equally bullish, so the industry is investing not just in marketing, but putting large capex into production capabilities to keep up with surging demand.” These predictions are not only based on the current size of the category, but the fact that it can sustain significant growth for many years to come through innovation.
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