Market Watch, April 2016

APRIL 2016 MARKETWATCHMAG COM MARKET WATCH 79Retailers and on premise operators quickly took note of the demand for Not Your Fathers and have added the newer brands as they emerge Its a growth category for us says Jay Wilson assistant vice president of wine and spirits at grocery chain Hy Vee The 240 unit company typically merchandises hard soda SKUs in the FMB section Other retailers place hard sodas with ciders or craft beers although increasingly the category receives dedicated space to accommodate the growing number of offerings Flavors FirstWhile it made the biggest splash Not Your Fathers wasnt the first soda style alcoholic beverage to appear Milwaukee based Sprechers Brewing Co launched a hard root beer in 2013 and Crabbies alcoholic ginger beer an import from the United Kingdom debuted in 2012 The brand currently offers Original Spiced Orange and Scottish Raspberry variants 999 a four pack of 112 ounce bottles We recognize that not every consumer will want a ginger based flavor says Steve Ferris U S sales director for Crabbies owner Halewood International Diversity of flavor is a core component of several brands strategies A B InBev launched Best Damn Brewing Co in December 2015 as a platform for different sweet and fruit forward beverages The first release Best Damn Root Beer is available on draft in a single 16 ounce can and in six packs of 12 ounce bottles pricing varies by market A Cherry Cola variant rolled out in March with more to come Consumers have shown their willingness to try new flavors styles and varieties says brand director Kathy Sattler To consistently reach them you have to offer different options because theyll jump from one flavor or style to another These days people are more open than ever to trying new things Jamey Grosser founder of W G Brewing Co agrees Consumers palates have changed he says Wild Ginger and Wild Root added in November 2015 aim to reclaim beer market share from spirits Some young adults jump straight to spirits and we want to get them back into the beer aisle Grosser explains We also want to attract spirits drinkers who may not like the bitterness of beer by offering alternatives W G Brewing is banking on growing consumer demand for new flavors and will release two additional variants in the Wild line this spring Coney Island has also added to its stable of flavors launching a Ginger Ale and an Orange Cream Ale last November We take traditional beer styles and put a soda spin on them says director of sales Rob Kreszswick Were a craft beer company so we extend that philosophy to our hard sodas We try to make everything balanced and authentic At Small Town Brewery a similar philosophy applies Theres a beer renaissance in the United States today and people are looking for new flavor profiles and variety Kovac PHOTO BY TOP ROB HARTTim Kovac owns Small Town Brewery the producer that kicked off the current craze with Not Your Fathers Root Beer Small Town now works with Pabst Brewing Co to ensure steady distribution Some brands predate the current trend such as Crabbies alcoholic ginger beer right from the United Kingdom Major players MillerCoors and Anheuser Busch InBev have launched their own labels Henrys Hard Sodas left and Best Damn Brewing Co center respectively