Market Watch, September 2018

SEPTEMBER 2018 MARKETWATCHMAG COM MARKET WATCH 77Several cocktail focused RTDs posted strong performances last year as well Geloso Beverages Clubtails leapt 51 to 19 million cases reaching Hot Brand status for the first time According to vice president of U S operations Paul Rene Clubtails has bene fited from an emphasis on brand development in key target markets as opposed to rapid expansion Elsewhere Jack Daniels Country Cocktails from Brown Forman returned to the list with a 15 gain in 2017 Our latest flavor innovation Southern Peach and supporting partnership with R B artist K Michelle has helped drive buzz says Casey Nelson brand director for Jack Daniels flavors portfolio She adds that the innovation had a positive impact on all Jack Daniels Country Cocktails flavors Cayman Jack from Mikes Hard was also added to the list for the first time with a 19 surge Grape was among the hot flavor trends for RTDs in 2017 Sales of A B InBevs Bud Light Lime Grape Ahhh Rita soared to 825000 cases and Henrys Hard Grape Soda marketed by MillerCoors also received Hot Brand recognition Addi tional MillerCoors RTD brands including Icehouse Edge Steel Reserve Alloy Series Spiked Watermelon and Redds Blueberry and Peach ales were also named Hot Brands Despite increased competition within the cider category four ciders achieved Hot Brand status last year A B InBevs Stella Artois Cidre increased to 12 million cases while three smaller brands Ace Cider Bold Rock Hard Cider and 2 Towns Ciderhouse all posted double digit gains Jeffrey House owner and president of Ace marketer California Cider Co attributes the brands 20 volume increase to the strong performance of Ace Pineapple Meanwhile 2 Towns Ciderhouse surged 54 last year to 368000 cases CEO and co founder Lee Larsen believes that the craft cider segment is still in its infancy and theres still a lot of growth potential going forward mwFlavors Propel RTDsWhile the imported beer Hot Brands are comprised of a number of perennial winners newcomers are plentiful among the RTD category Of the segments 18 Hot Brands in 2017 only four were also on the list in 2016 Boston Beer Co s Twisted Tea up 11 and Truly Spiked Spar kling up 124 Mikes Harder up 16 from Mikes Hard Beverage Co and North American Breweries Seagrams Escapes up 6 Indeed 13 RTD brands were recognized for the first time including four from the emerging hard seltzer segment Among hard seltzers Truly Spiked Sparkling surged to more than 2 million cases in 2017 its first full year of distri bution and the label secured the top position in the segment First time hard seltzer Hot Brands included White Claw from Mikes Hard A B InBevs SpikedSeltzer and Diageo Beer Co s Smirnoff Spiked Sales of SpikedSeltzer which was acquired by A B InBev in 2016 surpassed 1 million cases in 2017 spurred by TV advertising and a portfolio of six flavors According to SpikedSeltzer co founder Nick Shields hard seltzers should continue to see explosive growth this year Its a 500 million category and all projections see it doubling in 2018 he says Sales of Smirnoff Spiked sparkling seltzer meanwhile beat internal expectations in 2017 even as the category exploded notes Krista Kiisk Diageo Beers brand direc tor of flavored malt beverages Smirnoff Spiked has received a sizeable increase in ad support this year Two other RTDs that trade off the Smirnoff banner were also named Hot Brands for the first time in 2017 Smirnoff Ice Grape shot up 33 while Smirnoff Ice Red White Berry a summer limited edition label saw first year volume reach 350000 cases VICTORIA 2010 2017 millions of 225 gallon cases Calendar YearsSource IMPACT DATABANK 2018 123420172016201520142013201220112010VOODOO RANGER IPA 2012 2017 millions of 225 gallon cases Calendar YearsSource IMPACT DATABANK 2018 101214161820201720162015201420132012MW0918_