What's Next for Hard Seltzer in 2022? | First Key Consulting

When hard seltzer first hit the market, its singular metrics—clear, 5 percent ABV, 100 calories, scant sugar and carbs—helped the fizzy upstart soar. National sales grew triple digits in 2019 and 2020, especially with customers eager to sip something new during pandemic disruptions. Boston Beer Company predicted the category would grow by some 70 percent in 2021. But according to NielsenIQ, the category only expanded by 16 percent, the sales slowdown leading Boston Beer to dump millions of cases of its Truly hard seltzer.

“We were very aggressive about adding capacity, adding inventory, buying raw materials, like cans and flavors, and, frankly, we overbought,” Boston Beer chairman Jim Koch told CNBC show Closing Bell.

As a category, hard seltzer isn’t flatlining. But with a crowded field and increased competition from ready-to-drink cocktails and better-for-you beverages, hard seltzer is no longer a bubbly upstart. The era of trial is over, and breweries and beverage companies need to try harder to attract fickle consumers.

For First Key, I take a look at what’s next for hard seltzer.