E. & J. Gallo’s High Noon Sun Sips is expanding beyond vodka with High Noon Tequila Seltzer, a tequila-based extension of the hard seltzer brand.
High Noon Tequila Seltzer will be available nationwide in a variety 8-pack featuring four flavors: Strawberry, Lime, Grapefruit and Passionfruit. The 4.5% ABV offering is made with “real fruit juice” and “real blanco tequila,” is 100 calories per serving and is gluten-free, with no added sugar.
The packs are rolling out now with a suggested retail price (SRP) of $21.99, slightly more expensive than High Noon’s vodka-based 8-packs ($19.99 SRP). The new offering is expected to have “wide distribution” by May, a High Noon spokesperson told Brewbound.
“While the seltzer market continues to mature and level off, High Noon is the bright spot within the category, up +89% vs competitors who have shown to be flat or in decline,” the spokesperson said, citing internal Gallo depletion data. “The brand hopes to expand their fanbase with a premium tequila-based hard seltzer in a category crowded by malt-based alternatives.”
The tequila-based offering will be supported by a 360 marketing campaign, starting in May. News of the hard seltzer company creating a tequila-based offering began rolling out late last year, when the company’s TTB label registration was posted by Good Beer Hunting editor Bryan Roth.
Gallo declined to say if individual flavor packs of High Noon Tequila Seltzer would be added, similar to the vodka-based offering. High Noon’s vodka-based flavors are available in 4-packs ($10.99 SRP), 12-packs ($25.99) and single-serve 355ml ($2.50) and 700ml ($4.99) cans, along with 8-packs.
“Tequila continues to gain momentum and is one of the fastest growing spirits in the market,” Britt West, SVP and general manager of Spirit of Gallo, said in a press release. “We saw an opportunity to expand our offering and bring tequila fans a hard seltzer we know they’ll love.
“The debut of the High Noon Tequila Seltzer 8-pack comes at a time where tequila enthusiasts are craving the opportunity to enjoy their favorite spirit without having to compromise on convenience or taste,” West continued. “With tequila coming to the High Noon family, our sun continues to rise higher and shine brighter.”
Spirits-based hard seltzers recorded more than $363 million in dollar sales in multi-outlet plus convenience channels in the last 52 weeks (ending February 12), a +92.1% increase year-over-year (YoY), according to the market research firm IRI. The segment’s volume sales also increased +91.5% in the period. Meanwhile, dollar sales for the total hard seltzer segment (including beer-, wine- and spirits-based offerings) declined -12.5% in the period.
High Noon holds the largest share of the spirits-based hard seltzer segment, and was the top brand gainer in the total spirits category in IRI-tracked channels in the last week (ending February 12), increasing dollar sales +79.4% YoY. The hard seltzer surpassed 16 million cases in 2022, “knocking Tito’s Handmade Vodka out of the No. 1 spot,” according to the release, citing Impact Databank.
High Noon is not the only hard seltzer brand getting into tequila in 2023. Molson Coors is expanding Topo Chico Hard Seltzer this year with Topo Chico Spirited, a 5.9% ABV spirits-based offering that will launch with two tequila-based flavors and one vodka-based. Boston Beer Company is also expanding its spirits-based Truly Vodka Soda (previously Truly Vodka Seltzer) with Truly Tequila Soda, the company announced last fall during an annual business plan meeting with northeastern wholesalers. The extension will launch this spring with four flavors: Pineapple Guava, Grapefruit, Spicy Watermelon and Lime.
Meanwhile, hard seltzer market leader White Claw (Mark Anthony Brands) is just entering the spirits-based game with Vodka + Soda (4.5% ABV, 100 calories). The offering will launch this spring in a variety 8-pack (Peach, Pineapple, Wild Cherry, and Watermelon).