Aiming to appeal to consumers looking to moderate their consumption, Southern California-based Passion Tree Hard Seltzer rolled out “mini” 7.5 oz. cans in a variety 10-pack and two single-flavor 6-packs this week in Target stores across California, Florida, Texas, New York and Illinois.
Passion Tree co-founder and CMO Andy Kuklock told Brewbound he believes Passion Tree’s mini cans of hard seltzer are the first on the market, taking a page from Coca-Cola’s introduction of mini cans in 2007 and national launch in 2010.
Co-founder and COO Jake Ryder added that the Target placement will get Passion Tree into around 760 stores across five states. The cans will be exclusively sold in Target stores in those five states until March, when the company will look to expand to other retailers for the spring resets.
Passion Tree’s minis variety pack features five flavors – coconut, lychee, guava, boysenberry and dragon fruit. Each 7.5 oz. can checks in at 5.5% ABV and contains 70 calories per serving.
Guava and coconut are also available in single-flavor 6-packs.
The suggested retail price for the 6-packs are $11.99 and the variety 10-packs are $18.99. Passion Tree is keeping its promise of planting a tree for every case sold, including with the minis.
Passion Tree’s distribution network for the launch includes Saccani, San Francisco Naturals, RNDC and self-distribution in California; Gasko & Meyer in New York; Paradise Craft Distributors in Florida; Dynamo Specialty Distributing in Texas and Grant Importing in Illinois.
Asked about margins, Kuklock said the company’s products sell for a premium price point and the company has worked out the math with its co-packing partners at Lift Bridge Brewery in Wisconsin. Nevertheless, he said the move is first about catering to a consumer need, with price secondary.
“We’ve made it work on our end, but we haven’t sacrificed margin necessarily either,” he said.
Passion Tree launched in San Diego in May 2021, with the company’s founders living in Kuklock’s uncle’s 1994 Gulf Stream Conquest RV.
“That was headquarters for the first four months,” Ryder said.
By day, the RV would bounce between independent liquor stores in the San Diego area before retiring to a trailer park where its founders worked until midnight most nights. On weekends, the RV would scoot around San Diego doing guerilla marketing and sampling to raise awareness.
The founders have since exchanged RV life with residing in Los Angeles.
Passion Tree’s seltzers were previously available in 12 oz. can variety 12-packs in Kroger, Ralphs and Total Wine stores across California, Kuklock said. The brand was gaining traction in its home market, but grabbing the attention of beverage-alcohol buyers in new states was becoming more difficult due to the influx of hard seltzer and canned cocktail brands.
Kuklock said consumer trends toward moderation and mindful drinking, as well as the emergence of non-alcoholic and lower ABV offerings, left whitespace in portion size.
Ryder added that the buyers at Target and the company’s wholesalers were excited to see a product that addressed moderating alcohol consumption. He noted that the big box retailer is bringing in three SKUS in a refresh, “not a full reset.”
As part of the launch, Passion Tree is launching a marketing campaign called “Mini Moments” to celebrate life’s moments and celebrate people’s passions.
Passion Tree is also in the midst of a seed round of funding in an effort to raise $4.5 million, with around $1.5 million left in the round, aimed at capitalizing on its “first mover advantage” as “the first mini seltzer.”