After its previous failures in the hard-seltzer category, Budweiser has decided to try again.
In 2020, they launched Bud Light Seltzer. In January 2021 they launched Michelob Ultra Organic Seltzer. And in May 2021 they launched Cacti - a fruiter and boozier agave-sweetened seltzer created with Travis Scott. This fall they introduced maple pear, toasted marshmallow and pumpkin spice flavors.
You can clearly see that they are executing their strategy of frequently introducing new flavors.
But will it matter in a declining market?
When hard-seltzers were first introduced in 2016 growth soared. But, growth has slowed significantly in 2021. Among the possible reasons - slower-than-expected reopenings of bars and restaurants, confusion in the store aisles over too many choices, and the migration of some seltzer drinkers to canned cocktails. (Maloney, 2021)
But what about the Gen Z trend toward sobriety? It always seemed a bit odd that hard-seltzers were selling well even as research indicated drinking alcohol overall was declining.
Gen Z is drinking 20% less per capita than Millennials - who drank less than Gen X and Baby Boomers did at the same age. And, sales of non-alcoholic beers and cocktails were up 44% in the May 2020 versus year ago. (Kim, 2021)
So, do you think that people will buy Pumpkin Spice hard-seltzer? And that variety the key to keeping fickle consumers happy? Will collaborating with Travis Scoot to engage his tribe work? Or should Budweiser change their focus to non-alcoholic beverages?
Have you seen any marketing efforts for these products? If so, where? Who do you think the target is?
Maloney, J. (2021, October 4) Bud Light Maker Tries Again With Hard Seltzer. wsj.com. Retrieved October 6, 2021, from https://www.wsj.com/articles/bud-light-maker-tries-again-with-hard-seltzer-11633167002
Kim, J. (2021, March 15) How beverage brands can better engage Millennials and Gen Z. beveragedaily.com. Retrieved October 6, 2021, from https://www.beveragedaily.com/Article/2021/03/15/How-beverage-brands-can-better-engage-millennials-and-gen-z
4 comments:
I am not very familiar with the product but I have heard of cacti. Many people were doing tasting reviews of it on TikTok. I don't believe that with the constant addition of new flavors they can increase the sales or convince people to buy it. Since the consumer has a variety of options to pick from they need to attract more returning customers with the flavor. If it's good people will buy it again. The collaboration with Travis Scott was smart as it attracted many people that support him but I believe the only way to increase sales is to make people repeating customers.
The roll-out of nuanced hard-seltzer beverages over is a successful strategy. I believe that Budweiser’s target audience is Gen-Z individuals in their early to mid twenties. Travis Scott is an incredibly influential rapper amongst Gen-Z and the release of his beverage Cacti was most definitely something that was spoken about amongst my peers. However, although many individuals have tried the product, the lust of the item has not remained consistent. I believe this is because of the taste which has not gotten the best feedback amongst Cacti drinkers.
Moreover, although Travis Scott’s tribe was a successful demographic, Pumpkin Spice beverages target a wider audience. I assume it will be popular amongst individuals who fancy the fall season. I personally have not tried the product, but it has most definitely been on my radar.
I have seen marketing efforts for the product on Instagram and Budweiser has commented on accounts targeted for the Gen-Z demographic. A popular Instagram amongst Gen-Z and millennials is @dudewithasign. The Instagram consists of a man holding cardboard posters with ironic messages in NYC. Recently, @dudewithasign posted a photo of himself holding up a sign that stated, “We Get It You Like Fall.” Budlight commented on the post which garnered 1,100 likes stating, “This is exactly what the cashier said when I bought some pumpkin spice seltzers.” I do believe this was a successful means of social presence.
Moreover, I do think that the hard-seltzer trend might be a fad, but it is not dead yet!
https://www.instagram.com/p/CUYW-GOFyqX/
I think this product is both technology innovation and a product flop for Budweiser. Regardless of this product might be less healthy than regular beers, this is decent product innovation, a great combination of alcohol and an iconic seasonal drink. However, on the other hand, this product might not live long in the market because, like the professor mentioned in this blog, Genz tends to drink less and chase a healthy lifestyle. They are supposed to be the primary consumers of new drinking products. Budweiser’s latest move for me is trying too hard, they've been launching many new developments in recent years, but due to Budweiser’s brand reputation and worth etc., it is a good test.
And for using celebrities to promote products, not every promotion can be as influential as the Travis Scott x Mcdonald’s. People still care more about the products than the celebrity, even if they LOVE Travis; if they are not keen on this product, it's still not worth trying. They would try a burger bc of the celeb they admire, but not a lot of them would try an alcohol drink for it. In addition, I've never seen the collaboration commercial appeared anywhere. I'm not a huge fan of Travis, but I listen to his music almost every day, but I've never seen any music platforms or other forms of commercials have ever shown the collab. But I've only seen this drink in the food market instead when I was doing grocery shopping. Effective advertising might be more crucial than spending a fortune hiring a well-known person to make a promotion works.
I do not think that Cacti would have been successful or gained any sort of media attention if it wasn’t for the brand’s collaboration with Travis Scott. Travis is a Gen-Z icon, so many of his fans bought the beverage just because of him. However, I have seen and read many customer reviews of the product and the overwhelming reaction is that it does not taste good. As famous as Travis Scott is, at the end of the day, consumers will not continue to buy something if they don’t like how it tastes. Personally, I can’t imagine pumpkin spice hard seltzer tasting very good. It's easy to get someone to try something for the first time, but more challenging to develop a loyal customer. Consumers may buy the product once for the novelty of it, but they will not continue to buy it if they don’t like how it tastes.
Alcohol moderation is a massive growing trend and I don’t think we’re anywhere near the peak. This trend was accelerated by the pandemic and people are actively seeking out healthy lifestyle changes. I work at a company called Culture Pop Soda, which a lot of our consumers are using as a fun and flavorful alternative to alcohol. In the day-to-day of my job I meet more and more people who abstain from alcohol or are drinking it in moderation. Personally, I do not drink alcohol.
I do think that Budweiser should lean into the non-alcoholic beverages trend. This week, I noticed that Trader Joe’s is now carrying two different non-alcoholic beers- Athletic Brewing and Brooklyn Brewery. I took this as a massive sign that things are changing very quickly in the market. There is a ton of opportunity in this space and Budweiser needs to get in on the action!
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