Dive Brief:
- MillerCoors has announced the upcoming launch of its first foray into hard soda, the new Henry's Hard Soda brand.
- The brand will begin with two varieties, ginger ale and orange soda, both containing 4.2% alcohol by volume.
- "I think the hard soda space is definitely compelling and fast-moving," MillerCoors marketing chief David Kroll told Advertising Age in July. "I also believe that with our brewing capabilities we have the ability to enter with a superior preferred entry."
Dive Insight:
Diversification is something the industry will be seeing a lot more of among major domestic brewers as sales for domestic beer, particularly light beer, continue to decline. So far, that has taken the form of craft brewery acquisitions, such as MillerCoors' Saint Archer acquisition or Anheuser-Busch InBev's long list of craft brewery acquisitions.
Another option is turning to new product categories, such as hard soda. Hard soda, particularly hard root beer, has made an impression on the industry, and brewers small and large are entering the market with products like Not Your Father’s Root Beer from Small Town Brewery or Best Damn Brewing from AB InBev, which launched last month.
Hard soda and hard root beer play on consumers' desire for nostalgia and for something alcoholic that doesn't taste like beer, which not all consumers care for. As this consumer preference plays out, hard soda and flavored beer are continuing to pick up, not just in the craft community, but among major brewers as well.