Hard seltzer alcohol beverages continue gaining in popularity, thanks in no small part to Mark Anthony Brands' White Claw beverages, and two notable beer makers are the latest to jump into the craze.
The King Of Beers Isn't Immune
The hard seltzer market is valued today at around $550 million but could surge to a $2.5 billion market by 2021, according to UBS analyst Sean King. The market share gain is in part coming at the expense of beer companies, including the "King of Beers," Budweiser.
Budweiser's parent company Anheuser Busch Inbev NV (NYSE: BUD) is investing $100 million to launch Bud Light Seltzer, CNBC reported over the weekend. The company has two hard seltzer products, Bon & Viv and Natty Light, but management likely recognizes the need to do more in the space.
AbInBev will sell four fruit flavored seltzers, each of which will contain 5% alcohol by volume, 100 calories, two grams of carbs, and one gram of sugar, according to CNBC.
Molson Coors No Longer 'Brewing'
Consumers associate Molson Coors Brewing Co (NYSE: TAP) as being a brewer of beer -- and for good reason. However, this is a brand image the company wants to disassociate with as it announced in October it will be dropping the "Brewing" portion of its name.
Instead, the official name will be the Molson Coors Beverage Company. The name change is consistent with recent M&A activity and investments in alcohol drinks outside of the beer space. The most recent deal was announced Monday as the alcohol company bought a stake in turmeric seltzer and aloe water maker, L.A. Libations.
As part of the investment, Molson Coors will receive a stake in new products with the option to acquire new brands outright.