US – US multinational beverage company, Molson Coors, is ending production of Coors Seltzer to focus on more popular hard seltzers in its portfolio such as Topo Chico Hard Seltzer and nutrient-infused Vizzy.
According to a report by Brewbound, the maker of Coors beer brands wrote to its wholesalers asking them to sell through the remaining inventory they have in stock.
The discontinuation of Coors beer brand comes at a time when Molson Coors is aggressively pursuing a beyond-the-beer aisle strategy.
The company has since entered other beverage categories like spirits, and energy, and plant-based drinks and is targeting US$1 billion in revenue by 2023 from these beverages.
The hard seltzer category is however a very competitive one with nearly every major brewer, including AB InBev and Heineken, having at least one product in the category.
This market is dominated by Mark Anthony Brands’ White Claw and Boston Beer’s Truly, which collectively command 75% of the category.
Molson being a latecomer in the fast-growing market has had a lot of catching up to do and its Coors seltzer seems not to be delivering the growth that the company had envisioned.
Its other seltzers Vizzy and Topo Chico are off to a more promising start and have so far achieved a 6% market share with Vizzy and Topo Chico Hard Seltzer combined, CEO Gavin Hattersley said during its April earnings call.
This is despite the company having only one SKU for Vizzy in 2020 and Topo Chico launching in just 16 markets.
Achieving this market share position in a relatively short period of time is a win for Molson Coors and this could mean a product from the company’s portfolio could ultimately rise to the top tier even if it can’t overtake firmly established brands like White Claw and Truly.
Topo Chico and Vizzy are differentiated from other products on the market and are thus the best bet for Molson Coors if it is to survive the highly competitive seltzer market.
Vizzy is made with acerola cherry, a superfruit that features 30 times more vitamin C per cup than an orange, making it ideal for health-conscious consumers.
In Topo Chico Hard Seltzer, Molson Coors is partnering with industry giant Coca-Cola to manufacture, market, and distribute the premium drink.
Given the competitive nature of the seltzer landscape, analysts believe that Molson Coors is wise to end production of brands early on that don’t show long-term promise, especially if it has similar products that can take their place.
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