Dive Brief:
- Spindrift is discontinuing production of Spindrift Spiked after four years to focus on innovating its core sparkling water platform, the company said on its website.
- The beverage maker said the alcoholic offering required “substantial resources and time” and took attention away from other parts of its business. Spiked played in the hard seltzer category, which has seen demand wane as consumers gravitate to other drinks, such as no-ABV options and mocktails.
- The decision to transition away from alcohol comes seven months after a majority stake in Spindrift was sold to a private equity firm and former Boston Beer head Dave Burwick was appointed CEO.
Dive Insight:
Spindrift surged in popularity during its 15-year history with flavored sparkling waters that are low in sugar and contain clean-label ingredients. In 2021, the company decided to take the brand into the then red-hot hard seltzer category with its own offering made without synthetic flavors, sweeteners or additives.
But a lot has changed since that time.
Hard seltzer has lost much of the buzz that made the beverage attractive in the first place as consumers either reduce alcohol consumption or opt for other canned cocktails. In addition, the hard seltzer segment welcomed several new deep-pocketed players, including Coca-Cola and Molson Coors, further intensifying the competitive landscape.
Spindrift spent considerable time, money and patience to enter the alcohol sector, which necessitated new manufacturing requirements and regulatory compliance.
With the opportunity for growth largely fizzling out, Spindrift likely determined its resources were better off being spent in the sparkling water space where the company had made a name for itself.
“This is a difficult decision, but the right one to better serve the needs of our customers, supporting the tremendous momentum of the current business and strong consumer trends towards non-alc beverages,” Burwick said in a statement.
In announcing the shuttering of Spiked, Spindrift underscored that the company will continue to keep innovating its sparkling line, noting recent additions, such as Tropical Lemonade and Yuzu Mandarin. Spindrift also is working in new non-alc categories, such as mocktails and sodas, with “lots more happening behind-the-scenes.”
