Market Watch, April 2016

82 MARKET WATCH MARKETWATCHMAG COM APRIL 2016toward hard sodas he says The category is gaining traction with craft beer drinkers as well Hard soda broadens our customer base which is a great thing for us It fits within our core offering and gives options for someone who might not go for the craft beer styles In addition to its draft and bottled options World of Beer began offering a hard soda based cocktail this past winter The Kentucky Hard Root Beer 6 mixes Rittenhouse rye whiskey with house made framboise syrup and Not Your Fathers Root Beer topped with whipped cream Other brands such as Crabbies are also actively promoting their on premise versatility Developing PotentialWhether or not product trial turns into consistent consump tion remains to be seen but the proliferation of flavor options and new brands will likely push hard sodas growth in the short term Most retailers and on premise operators are waiting to see how it develops in the coming year Ive seen the FMB category evolve so many times over 20 years says World of Beers Haley Its like a chameleon It keeps evolving but it never goes away Kirk of Buffalo Wild Wings thinks that a shakeout is inevi table Multiple SKUs and flavors will flood the market he says I dont see staying power for a continual revolving door At some point it will slow down and only the core flavors will stick Were going to have fun while it plays out At Cap N Cork Doust isnt sure whether hard sodas will develop into a permanent category but hes optimistic that theyll stick around for a while The major brewers are putting a lot of time effort and money behind these products he notes Theyll do a lot to expose people to the category and theyd give it a long look before pulling the plug Hy Vees Wilson compares the current market to a similar situation in the 1990s People were skeptical when the hard lemonades came out but Mikes is still around and doing busi ness he says Time will tell and so will consumers Theyre the ones who will tell us where this category goes mwtaste testing the new beverages Our younger legal drinking age consumers want to try different flavors on a regular basis he says The brewers spot these trends and we participate Were placing products that work to satisfy the continual demand for something new Having new flavors excites our guests and draws interest Noting that offerings like Redds Apple ale and the Leinenkugels Shandy range also perform well Kirk explains that Buffalo Wild Wings takes a broad approach to the flavored beverage mix Were looking at flavors in general and not just hard sodas specifically he says Trial plays a big role in the off premise as well Consumers these days dont just find something and stick with it says Doust of Cap N Cork Theyll move within the category to see if theres a different taste profile that they havent had before They go out and experiment The fact that theyre willing to try anything once is exciting for us it makes our jobs so much easier Something For EveryoneOne reason hard soda has found quick success is its mass appeal MillerCoors has seen Henrys Hard Soda index across demographics drawing new consumers into the FMB cate gory The brand is sourcing from both wine and spirits drinkers where beer has lost share over the last several years Ferschinger notes Coney Island has had a similar experience This category crosses a lot of barriers says Kreszswick In addition to millennials our hard sodas do well with blue collar drinkers and both men and women Weve also seen a lot of crossover with craft beer drinkers as well as domestic beer drinkers He adds that the different offerings work well as cocktail mixers especially for on premise accounts The root beer for example can be mixed with vanilla vodka Southern Comfort or other liqueurs that complement its spices and sweetness Kreszswick explains At World of Beer Haley has seen hard sodas attracting a wide swath of customers People who might have been drinking wine cocktails or cider are starting to gravitate Hard sodas are doing well on premise with some brands like Coney Island brewery manager Chris Adams pictured left available on draft World of Beer is currently offering the Kentucky Hard Root Beer pictured right made with rye whiskey and Not Your Fathers Root Beer