Hard Seltzer Consumer Profile

Part
01
of two
Part
01

Consumers of Alcoholic Seltzer Beverages - Demographics

The typical demographic for alcoholic seltzer consumers include young females in their twenties, located in Northeast US, with the highest consumption rate in the state of Montana. Below are the details of our findings.

AGE AND GENDER

  • Nick Shields of SpikedSeltzer reported that the largest group of consumers for his brand are in their late twenties, skews female, and they also consume sparkling water.
  • According to a study, it was estimated that 70% of alcoholic seltzer drinkers are female.
  • Younger female consumers prefer brands like White Claw, SpikedSeltzer, and Truly Spiked.
  • Young females are the consumers of Hard Kombucha, with reported health issues.
  • Beer companies are marketing or targeting female customers as new consumers due to the realization that they cannot focus only on male consumers.
  • Berger reported that the prime demographic tends to be women in their mid-20s to 50. He added that the age range is wide and it appeals to people who are conscious of their caloric or carb consumption.
  • According to IWSR data, the most frequent consumers of low alcohol drinks are between 21 to 44 years old, which indicated the age range of millennials and some Generation X consumers.

INCOME AND LEVEL OF EDUCATION

  • A report revealed that hard seltzer is highly consumed in the US among educated women with disposable income.

RACE

  • No information was found here.

LOCATION

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGY

The first research strategy was to search for demographic information about the consumers of alcoholic seltzer beverages in the US through multiple industry-related websites and articles such as Good Beer Hunting, Vice News, Bozeman Daily Chronicle, among other. Here, we were able to identify the age, gender, and the location of the alcoholic seltzer in the United States, but we could not retrieve any information regarding race with this search.

The second research strategy utilized was to find the race demographic information by looking at the actual seltzer companies databases and locate information about their clients. The rationale here was to identify related information regarding the race of alcoholic seltzer on the companies' websites, but this search failed in identifying the required information.

The third strategy was to search for related information regarding the race of alcoholic seltzer on statistic databases such as Nielson, Sightlines, among others. Here, we were able to identify information regarding the consumers' gender, financial data, and growth of the markets of the hard seltzer brands, but no information regarding the race of alcoholic seltzer was identified.

Lastly, we endeavored to look at the closely related beer industry to identify any mention of the race of alcoholic seltzer and beer in their reports. We scoured through databases such as Forbes, USA Today, Beer and Brewing, among others to identify this information. Here, the majority of the information found was centered around the age and gender of alcoholic seltzer. Lack of retrieval of the race of the alcoholic seltzer in the United States could be as a result of lack of publication of such information on public data.





Part
02
of two
Part
02

Consumers of Alcoholic Seltzer Beverages - Psychographics

Hard seltzer is popular for those who drink hard and soft alcohol, specifically because it offers a low-calorie, low-carb, gluten-free alternative to beer, wine, and spirits, which is a major factor consumers consider when selecting a drink. Alongside hard seltzer, consumers typically drink sparkling wine and clear spirits.


LIVES/ROUTINES OF HARD SELTZER CONSUMERS

  • Hard seltzer has become a popular alternative to beer, wine, and spirits for outdoor activities.
  • Consumers like hard seltzer as a way to replace sugary drinks like Dr. Pepper because "it kind of feels like a treat, but not a bad treat." These consumers tend to drink hard seltzer when out with friends or as an afternoon drink because it fits into multiple aspects of their social lifestyle.
  • As is with beer, hard seltzer sales increase during warm and sunny weather because it re-hydrates and refreshes.
  • Therefore, hard Seltzer sales tend to increase during summer.
  • Hard seltzer has also increased in popularity because it is low-carb, low-calorie, and gluten, which is especially important to consumers during the summer (between May and September).
  • Between July and September 2017, Nauti, Smirnoff, White Claw, Truly, and Henry's (all hard seltzer brands) earned $60 million across grocery, convenient, and other stores.
  • Consumers who watch the Super Bowl are also key consumers and A-B plans use one of its Super Bowl ad spots to feature the Bon and Viv Spiked Seltzer.
  • Currently, hard seltzer is largely only available in stores. However, there has been an effort to increase hard seltzer sales in bars and restaurants based on consumers' interest in drinking hard seltzer in these contexts.
  • Truly and White Claw are introducing new brands by the names of Truly Pure and White Claw Pure to attract vodka soda drinkers.
  • Member of the Innovation Team at Boston Beer, Casey O'Neil describes hard seltzers as part of the "'work hard, play hard' mentality of many young professionals," while also noting that hard seltzer drinkers tend to "'healthy lifestyle' consumers."


OTHER TYPES OF BEVERAGES CONSUMED BY HARD SELTZER CONSUMERS

  • Consumers of hard seltzer also consume wine, sparkling wine, spirits, beer, hard malt, and hard cider.
  • In 2017, sparkling wine consumers spent $43 of their wine budgets on hard seltzer.
  • Specifically, drinkers of the top-selling hard seltzer White Claw (which earned over $117 million in sales in 2018) also consume wine, spirits, and light beer. Additionally, some hard seltzer drinkers have completely stopped drinking other forms of alcohol.
  • Mainly, wine and clear spirits are some top alternatives for drinkers of hard and spiked seltzers.
  • They are also marketed as mixers which add flavor but little calories to cocktails. A hard seltzer can be taken as a standalone or used to spruce up cocktails [7].


FACTORS IN CHOOSING HARD SELTZER BRANDS

  • Millennial and health-conscious consumers are attracted to hard seltzer brands because they typically have 100 calories or fewer per serving, whereas other alcoholic beverages tend to range contain between 100 to 400 calories per serving.
  • White Claw, a hard seltzer brand is common among "healthy lifestyle" consumers. This is because when selecting a beverage, many consumers avoid brands with high carbs and sugars.
  • Because hard seltzer is gluten-free and contains a lower alcohol content than many beers, wines, and spirits (ranging from 4.5% to 6% ABV), they are very attractive to consumers with a preference for low-alcohol beverages or who want to consume multiple beverages without severe effects.
  • According to Ben Weiss of Crook and Marker, "consumers aren’t choosing seltzer as much as they are steering away from sugar."
  • Because of their interest in reducing their sugar intake, consumers are looking to reduce their intake of non-diet sodas and calorie-heavy brands, favoring value-added water."
  • Consumers are also interested in wide flavor pallets, making variety packs a top choice when considering which brand to purchase.
  • In 2017, the top five best-selling hard seltzer brands were variety packs.
  • Based on the results from a nationwide surveys of drinking-age adults conducted by MillerCoors, "calories and sugar content were the main drivers of choice within the Hard Seltzer category," noting that "it may sound stereotypical, but these are points that were found to be important for the category’s biggest demographic—about 70% of Hard Seltzer drinkers are female, according to company research."
Sources
Sources