Grocers See Tremendous Growth With Hard Beverages
It couldn’t be more easy: Hard beverages can mean big sales at grocery retail.
“At ALDI, we have seen tremendous growth with hard beverages, focusing on hard seltzers, lemonades, teas and ciders,” asserts Arlin Zajmi, director of national buying for adult beverages at the fast-growing Batavia, Ill.-based chain. “In fact, we offer Vista Bay Hard Seltzer in two everyday variety packs of classic flavors, plus a variety pack of lemonade at $12.99 nationwide — a sharp discount to national brands — and the beverage is growing double digits. We recently launched the new ALDI-exclusive brand, All Play Iced Tea, with a variety pack of delicious flavors. It is currently rolling out to ALDI stores nationwide that sell alcohol, due to the demand of flavored malt beverages in the marketplace. In the cider space, our Wicked Grove Cider has a cult following, and it’s now the No. 2 hard cider brand in the U.S. because we can deliver on the quality and taste of pricier national brands for less.”
According to Zajmi: “Hard beverages have become the ‘fourth category’ of adult beverages, outside of wine, beer and spirits, due to the popularity of the segment in the last five years or so. More consumers, specifically Millennials, are gravitating towards other alternative alcoholic beverages like flavored malt beverages (FMBs) with lemonades and teas, and ready-to-drink (RTD) cocktails and ciders. These products offer a unique taste with more flavor, variety and sweetness in comparison to hard seltzers. They are easy to understand and convenient to serve.”
Having seen products with a higher alcohol-by-volume (ABV) percentage perform well, ALDI recently launched a Dragonfruit Imperial Hard Seltzer, infused with dragonfruit, pineapple and soursop flavors and boasting a 9% ABV, for the summer season, aiming to meet consumer demand for stronger taste and bigger value. “It originally debuted as an ALDI Find in 2023 and flew off shelves, so we decided to bring it back this year as a seasonal product,” recounts Zajmi.
The retailer also offers cocktail options in unique flavors like Espresso Martini.
Flavor Forward
Speaking of out-of-the-box flavors, Mike’s Hard Lemonade has debuted a Limonada Fresca line, described by the Chicago-based Mark Anthony brand as “a blend of luscious citrus, lime and lemon flavors, with real fruit juice and agave nectar” and offering a distinctly tropical ambiance. Available in Watermelon Lime, Mangonada, Citrus Limonada and Pineapple Guava flavors, the 5% ABV beverages come in 12-packs of 12-ounce cans. Mike’s has also rolled out a line of 8% ABV Harder Mixed Drink single-serve cans in Piña Colada, Hurricane Punch and Screwdriver varieties.
For its part, Lake Forest, Calif.-based Spirited Brands Holdings Inc., a female-owned beverage innovation company, has introduced two all-natural canned cocktails with Mexican and Asian flavor profiles. The 5% ABV, 140-calorie-per-serving premium offerings are Sokē, a unique blend of Junmai sake and soda, and Soula, a margarita-infused Mexican agave azul wine. Both are packaged in convenient 12-ounce cans.
“Our vision is to create exceptional, premium beverages and to offer an experience in every can,” said Melanie Nelson, president and co-founder of Spirited Brands, at the time of the products’ launch in January. “Through co-founder Anita Goodson, our creative force behind our cocktails … who passionately draws inspiration from her Mexican heritage, we aim to celebrate various cultures by infusing our creations with authentic and vibrant influences. Furthermore, through Sokē and Soula, we aim to redefine the ready-to-drink cocktail market by providing consumers transparency of nutrition facts on each can and offering them low-alcohol and lower-calorie options without compromising on [their] full-bodied flavor.”
Sokē comes in White Peach, Lychee, Cherry Blossom and Yuzu Ginger flavors, while Soula is available in Mango Citrus, Lime, Paloma and Pineapple Chili varieties. The vegan; handcrafted; clean-ingredient; and sulfate-, GMO- and gluten-free beverages are sold at retail in 8-count variety packs for $19.99 each and online in a 4-pack for $12.99 each.
Heart and Soul
Employing flavors closer to home — but not often seen in adult beverages — is Grown Folks, the first Black-, mom-and female-owned brand in the hard-seltzer segment, offering Peach Cobbler, Ambrosia and Key Lime options.
According to founder Danica Dias, a seasoned entrepreneur who drew on her Louisiana Creole roots to create the product line: “The hard-beverage scene is really evolving towards more sophisticated and complex flavor options. People want drinks with unique flavors made from quality ingredients. I believe this shift is driven by consumers who are more informed and want a better drinking experience that fits their lifestyle and values and is driven by taste.”
As for her product line in particular, Dias says: “The flavors for Grown Folks are inspired by these soul food dishes and the flavors I grew up loving. These flavors are familiar and nostalgic, and I knew they would resonate with a broad consumer base. We wanted our flavors to be sweet-focused and well balanced, using a neutral sugar brew base with no aftertaste, and the freshest ingredients possible, including real fruit juice.”
Telling the Story
When it comes to merchandising hard beverages, simplicity is key.
“We know our customers are looking for the highest quality for the best price,” observes Zajmi. “We merchandise hard beverages together with our beer selection to make it easy to shop. We stay on top of industry and customer trends and refresh our alcohol assortment on a seasonal basis.”
“Our branding and merchandising are designed to visually represent what we stand for as a brand,” explains Dias. “Our cans feature illustrations that convey Creole vibes through a beautiful, celebratory and inclusive scene. This includes diverse skin tones and body shapes enjoying life freely and vibrantly. We worked with a talented illustrator, Alexia Briana Taylor, to create our signature font and can illustrations. At grocery, our priority is storytelling — the more we can tell our origin story and get liquid to lips. We focus on hosting sampling events and on-site activations to engage customers.”
Asked about the future of the hard-beverage segment, Dias believes that it’s “heading towards more innovation and diversification. As consumers continue to seek options that match their cultural backgrounds, we’ll see more beverages offering more unique flavors and marketing. Socially conscious products will also be a key focus, with more emphasis on what brands support and believe in.”
“The ‘fourth category’ is here to stay,” affirms Zajmi. “Innovation will continue in the hard-beverage space, as consumers love the unique flavors, taste profile and the convenience this category provides.”
