Dive Brief:
- Anheuser-Busch is debuting a non-carbonated vodka tea called Skimmers that will be available in nearly 20 states and Washington, D.C.
- Skimmers is made with Anheuser-Busch’s Cutwater vodka, real tea and natural flavors. It will be available in Original Tea, Half & Half, Peach Tea and Lemonade.
- The alcohol maker noted that the vodka tea sector surged 332% in 2024, according to data provided by Circana. Skimmers meets consumer demand for spirits-based RTD beverages that can be enjoyed on various occasions.
Dive Insight:
As consumers turn away from beer and other alcohol, a popular alternative is hard tea. The market for the category, valued at $2 billion in 2021, is projected to grow at a compound annual growth rate of 24.7% through 2030, according to Grand View Research.
It’s a big reason why Anheuser-Busch and several other alcohol makers have added hard teas to their portfolios in recent years.
The tea segment has for decades been dominated by Boston Beer’s Twisted Tea, which first debuted in 2001. In the last two years, vodka-infused Surfside tea and Boston Beer’s Sun Cruiser have grown in popularity as more consumers crave real spirits as opposed to malt alcohol.
Other newer offerings in hard tea include Coca-Cola and Molson Coors’ Peace Hard Tea and Monster Energy’s Nasty Beast.
Skimmers, which has a 4.5% alcohol by volume, 100 calories and two grams of sugar per 12 fluid ounces, will face an uphill battle grabbing share from these more well-established players. But with the hard tea category growing quickly, and Anheuser-Busch aiming to grow its beyond-beer portfolio, it’s a bet that it needed to make.
The types of alcohol people are demanding, and the occasions when they consume them, is constantly changing. A hard tea serves to not only address consumer demand but also help grow Anheuser-Busch’s portfolio that includes everything from Bud Light and Michelob Ultra to Nütrl Vodka Seltzer and a soon-to-be-launched energy drink called Phorm.
