Boston Beer Company executives believe Truly Punch could be the next big thing in hard seltzer, rivaling the brand’s Lemonade and Iced Tea offshoots.
On the heels of launching Truly Iced Tea in January — two months before the spring resets and has already become the company’s third best selling hard seltzer SKU — the company will roll out Truly Punch Hard Seltzer in May as a new year-round product.
Truly Punch will come in four flavors — Tropical, Berry, Citrus, and Fruit — and be sold in variety 12-packs. Fruit Punch will also be sold in 24 oz single-serve cans in the convenience channel.
Speaking to Brewbound, Truly brand VP Don Lane said consumer research around the concept of Punch “was off the charts.” So the company pushed forward to meet consumer demand within the whitespace of the segment.
“Right there was a really good intersection point,” he said.
Once Truly Punch was developed, the product tested higher than Truly Lemonade with consumers, Lane added.
“Think about that,” he said. “Lemonade kind of revolutionized hard seltzer, is still the No. 3 SKU, it still has this monstrous share, it is still growing. This with consumers tested higher, and it also tested higher among multicultural consumers.”
Lane said retailers will be adding Truly Punch into sets or putting it on display this spring, and the brand will be “at the center” of Truly’s summer push.
Lane described Punch as Truly’s biggest flavor yet, made for a consumer looking for more flavor, a sweeter profile while maintaining Truly’s bonafides: 5% ABV, 100 calories, 1 g sugar, 3 carbs.
“It’s in that sweet spot of people who want that flavor in hard seltzer and the refreshment that it offers,” he said.
However, Lane said Boston Beer’s research has shown that Punch offers the opportunity to attract new consumers who don’t believe existing hard seltzers offer enough flavor.
The addition of Truly Punch to Boston Beer’s portfolio follows its existing lineup of strong innovation in the $4.1 billion segment, which has already posted $595.8 million in sales year-to-date through March 6, according to NielsenIQ. The Truly Iced Tea variety pack has already posted $21.5 million in off-premise retail sales after about a month in the market, according to market research firm IRI data through February 21.
Truly brand family sales are up nearly 138%, to about $147.6 million, year-to-date through February 21, according to the firm. That’s led by the Truly Lemonade mixed-pack (+691.8%, to $43 million), followed by Truly Berry mixed pack (+54.8%, to $31 million), Truly Iced Tea and Truly Tropical variety pack (+67.4%, to nearly $20.4 million). Truly’s original citrus variety pack has declined nearly 15%, with more than $9 million in sales, IRI reported.
“What’s happened with the last few innovations is that when we bring out a new innovation, the previous launch continues to grow sales, buyers and repeat rate,” Lane said. “So that happened with Iced Tea, with Lemonade, with the previous three original packs that launched, and we see that happening again.”
So when the company looks at innovation, Lane said the company is looking at how it can grow the brand in two ways: household penetration, which is up triple digits, and variety, with an eye on increasing repeat rates.
In other Truly news, the company is adding a Watermelon Lemonade flavor into its variety pack, which is now the No. 3 overall SKU in hard seltzer. Watermelon Lemonade will be featured in the pack through June, replacing Black Cherry Lemonade, which will remain in 24-packs. Boston Beer is also partnering with Jel Sert to release Truly Lemonade Freeze Pops (5% ABV, 80 calories) in 22 states this summer.
The alcoholic freeze pops will come in four flavors — Mango Lemonade, Strawberry Lemonade, and Original Lemonade — and will be sold in 12-packs in grocery stores. Lane said consumers would have to consume four freeze pops to equal the alcohol content of one can of Truly.
Lane said those new Truly products, along with the 8% ABV Truly Extra, wrap up the brand’s innovation slate for the summer but not for the year.
“We are not done,” he added. “This will get us through the summer, and we’ve got this huge marketing plan locked and loaded, ready to build the brand, drive the traffic and sell through.”
Boston Beer is planning a $40 million media campaign, including spots on Saturday Night Live, the NBA, and the NHL. Truly is the official hard seltzer of the hockey league.
The company will also push the Truly brand during the Barstool Classic golf tournament, as well as an e-sports sponsorship with 100 Thieves and a program with concert promoter Live Nation when in-person events return. Lane said the effort will capture about half a billion impressions.
Truly will also receive new creative that will be revealed in the coming weeks and begin rolling out in May that will last through the summer.
The target of that creative will be younger and more diverse consumers with higher household incomes. However, Lane said Boston Beer’s marketing around the Truly brand is built on capturing consumers who are looking for exploration, variety and more flavor.
“We’re really focused on that,” he said. “What happens when you do that is that you become really attractive to people who want to live their life that way. And so you end up getting a younger, more educated, higher household income, and higher basket ring, and more diversity, because you’re not saying we’re for you, we’re for you, we’re for you. We’re saying we’re for this, and people get attracted to that, and I think the hard seltzer category in general is just a younger, more open minded drinker and that’s who we’re attracting.”