Anheuser-Busch InBev is cashing in on the popularity of its Michelob Ultra beer brand and launching Michelob Ultra Organic Seltzer, expanding its core portfolio to six hard seltzers, the company announced today.
“We are incredibly excited with the launch of Michelob Ultra Organic Seltzer: the perfect choice for consumers looking for a premium organic seltzer option,” Michelob Ultra vice president Ricardo Marques said in a press release. “We believe that Michelob Ultra is uniquely placed to win in the seltzer segment not only because it’s one of the hottest brands in the country but also because it has unmatched equity as a high quality brand with consumers who like to have an active lifestyle.”
Michelob Ultra Organic Seltzer will roll out in January 2021 with three flavors: Spicy Pineapple, Peach Pear, and Cucumber Lime. It is the first nationally available hard seltzer brand that has been certified organic by the U.S. Department of Agriculture, according to the release.
Similar to its namesake super premium beer offering, Michelob Ultra Organic Seltzer will trade on better-for-you qualities. The seltzer brand checks in at 80 calories, 4% ABV, and has zero grams of carbohydrates or sugar.
“As a wellness-centric brand that has always championed a balanced and active lifestyle, Michelob Ultra is uniquely positioned to expand this emerging category by bringing in consumers looking for a low stat, high quality seltzer,” the company said in a release.
When it launches in January, Michelob Ultra Organic Seltzer will be available in 12- and 24-pack variety packs of 12 oz. slim cans and single-serve 25 oz. cans of each individual flavor.
Michelob Ultra Organic Seltzer will trade on the equity built by its namesake beer brand, which is now the second best selling beer in U.S. off-premise retailers, trailing just Bud Light. Year-to-date through September 6, the beer brand has increased dollar sales 23.8%, to $1.9 billion, according to market research firm IRI. In total, the Michelob brand family’s year-to-date dollar sales have increased 22.9%, to $2.1 billion, according to IRI.
The hard seltzer segment shows few signs of slowing down, earning $3.49 billion in off-premise sales in the 52 weeks that ended September 5, according to market research firm Nielsen. The segment is dominated by two lead brands, Mark Anthony Brands’ White Claw and Boston Beer’s Truly, which together account for nearly three quarters of the market.
A-B InBev’s Bud Light Seltzer, which the company launched in January 2020, is a distant third to White Claw and Truly, with 10% market share and year-to-date dollars sales of $250 million, according to Nielsen. The world’s largest beer manufacturer bought itself an early lead in the fledgling hard seltzer segment when it acquired Boathouse Beverage, the Massachusetts-based producer of Spiked Seltzer, in 2016, which it remade into Bon & Viv.
A-B’s hard seltzer portfolio — not including offerings from the 23 brands in its craft beer division, the Brewers Collective, includes six brands, which serve different purposes, according to the release:
- Bon & Viv is the “premium brand;”
- Social Club offers cocktail-inspired flavors;
- Natty Light Seltzer is “positioned at a more accessible price point” for legal-drinking age adults;
- Bud Light Seltzer “leverages the equity of an established brand” in the seltzer space;
- Bud Light Platinum Seltzer, which checks in at 8% ABV, is geared toward nighttime occasions;
- And new Michelob Ultra Organic Seltzer is intended to attract “consumers who live an active lifestyle.”