- Diverse flavor options (sold in variety packs)
- Health and nutrition (transparency around calories, ingredients, organic status, etc.)
- Form factor (colorful, sleek cans)
Given hard seltzer's massive growth and the flat YoY trend of wine, I was curious if wine brands were planning to expand into the category. It turns out Barefoot is releasing a hard seltzer product this month that is wine-based instead of malt-based like the White Claws of the world.
Barefoot launched with four varieties, each made with sparkling water, white grape wine and natural flavors: Peach & Nectarine, Cherry & Cranberry, Pineapple & Passionfruit, and Strawberry & Guava. Each seltzer is 70 calories, 4% ABV, and has two grams of sugar. These nutrition facts compare favorably to White Claw, which is 100 calories and 5% ABV.
As Barefoot and other winemakers expand their Seltzer offerings, I wonder what impact we will see on their traditional wine products. Michael Preis shared that Boston Beer Company's profit contribution from White Claw was bigger than that of its entire beer portfolio. If Barefoot is successful and consumers are willing to drink a wine-based seltzer, I predict we will see many copycats replicate the strategy and shift their resources from wine to seltzer. Why would wineries risk distributing Chardonnay in a can if they can earn higher margins from hard seltzer?
Sources
https://www.bizjournals.com/sacramento/news/2020/02/05/what-wine-brands-can-learn-from-the-rise-of-white.html
https://www.forbes.com/sites/taranurin/2020/01/22/barefoot-cellars-releases-the-first-nationally-distributed-wine-seltzer/#4bde4cf457b0
Mike, thanks for posting this. I had no idea that Barefoot was creating this, but it seems like it could be a groundbreaking new entrant to the spiked seltzer game!
ReplyDeleteIf anything, I actually see this as a great extension of the Barefoot product portfolio. Like we've heard in many of our classes, many of these wineries offer an entry level or cheaper product in order to try and entice consumers and push them up to higher product levels. Although most of Barefoot's products tend to be lower in price, it does offer Barefoot the chance to market to consumers and increase brand awareness. I'm sure Barefoot will try to sell this product next to spiked seltzers in the grocery stores. If a consumer was then to go to the wine aisle, I think there's a good chance they would gravitate toward the familiar look of the Barefoot label.
Although I was initially little skeptical that this product will be cloyingly sweet, the 2g of sugar does have me more interested. This is definitely on my list to check out the next time I head to the store and could be a great substitute for spiked seltzer going forward!
Thanks Mike and Ben!
ReplyDeleteMy question on this is - how noticeable is this to the end consumers? Do people actually care how the seltzer is made, and can they taste it? I know I read somewhere (sorry, can't find the article!) that seltzer is brewed with malt because it allows seltzer makers to get around the 21st amendment regulations. However, I don't think it's really all that different than a weak-and-sweet Vodka soda.
With the addition of wine-based seltzers, consumers will have another option - though I'm not sure it will be noticed.