Hard seltzer sales drop by 10.4%
Hard seltzer sales dropped by 10.4% over the last four weeks, according to reports.
As reported by Yahoo Finance, Evercore ISI has reported the figures to its clients with sales of Boston Beer Company’s Truly Hard Seltzer down 19.5%.
The “hard seltzer category has yet to ‘bottom’ suggesting risk to Street estimates,” Jefferies analyst Kevin Grundy said.
“Recovery in SAM shares [is] largely tethered to malt-based seltzer category and Truly brand top-line stabilisation.”
It has been a mixed time in recent months and years for the hard seltzer industry since it exploded with the launch of White Claw in 2016.
White Claw’s sales increased by 4.4% over the last four weeks, while Anheuser-Busch’s Bud Light Seltzer was down by 32.5%.
Boston Beer Company blamed the hard seltzer slowdown for a $139.2million loss in Q3 of 2021.
At the time, Dave Burwick, President, and CEO of the company said: “The unexpected rapid slowdown of hard seltzer category growth this summer significantly impacted our business.
“While Truly has continued to grow, gain share and solidify its long-term position, the slower category performance has reduced our full-year growth expectations for Truly to be between 20-25% year-over-year. “
Despite this slowdown, the brand launched Truly Vodka Seltzer in 2022.
Molson Coors CFO Tracey Joubert pointed to increase in costs related to production as a reason for the slowdown.
In a call with analysts, she said: “As expected, inflationary pressures continued to be a headwind in the quester … The two biggest drivers were cost inflation and mix. Cost inflation comprised more than two-thirds of the increase and included higher input materials, transportation and energy costs.”