Hard Seltzers in Europe_ A Sparkling Opportunity_ An Analysis.pdf

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Introduction

Since the “White Claw Summer” of 2019, the shelves of American grocery stories and

the commercials during Sunday Night Football have been filled with hard seltzer brands. Hard

seltzers have taken the American alcohol market by storm and provided direct competition for

the beer category – and there is no indication that this disruptive category is going to disappear

any time soon. 2019 saw a 226% increase in category growth followed by 165% in 2020 (Weitz).

In 2020, category leader White Claw alone saw 275% growth (Schwarz). While these levels of

growth are not sustainable in the long-run, a report from Grand View Research in 2019 still

predicted a “compound annual growth rate (CAGR) of 16.2% from 2020 to 2027” of the market

size for the hard seltzer category worldwide (“Hard Seltzer Market Size, Share & Trends

Analysis Report By ABV Content (1.0% To 4.9%, 5.0% To 6.9%), By Distribution Channel

(On-Trade, Off-Trade), By Region, And Segment Forecasts, 2020 - 2027”).

Still, while hard seltzers have taken a hold of the alcohol market in America, globally this

has been an isolated incident. Since approximately 2021, however, there has been an emergence

of the category beyond American borders. Some of these brands have been extensions of already

successful American hard seltzer brands, while others have been new global or localized brands.

For many American industries, Europe is seen as the natural next step for global expansion. As a

result, this thesis will analyze the potential for hard seltzers in the European market. Moreover, it

will analyze the potential for seven key brands in particular: White Claw, Truly, Bud Light

Seltzer, Vizzy, Topo Chico, Mike’s Hard Seltzer, and Pure Piraña. The first part of this thesis will

establish context through secondary research by looking at the conditions of entering the

European alcohol market and an overview of the hard seltzer category. The second part of this

thesis will look at primary research consisting of data from two surveys, one for Americans and

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one for Europeans. This data will demonstrate similarities and differences between the two

groups in drinking preferences and behavior as well as awareness and enjoyment of hard seltzers.

In addition, the secondary research will consist of a case study looking at the efforts of White

Claw in Vienna, Austria. This thesis will conclude with an analysis of the above sections to

determine for the hard seltzer category and each of the key brands whether there exists a

sparkling opportunity.

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Entering the European Alcohol Market

The following section will establish the conditions in which hard seltzers are entering the

European alcohol market. It will do this by first addressing the challenges of entering any market

abroad, next looking at the challenges of entering the European market in particular, and finally

looking at the history and current conditions of the European alcohol market.

Challenges of Entering Markets Abroad

For many companies, introducing a successful product or service in a foreign market

seems like a natural next step to ensure its continued and growing success. However, as many

companies have come to recognize, success at home does not necessarily guarantee success

abroad. Moreover, in order to be successful abroad, a company is likely to have to adjust the

strategy it used at home to achieve the same goals. Yet, it is hard to understand what adjustments

need to be made and even more difficult to implement them. As a result, business history is

littered with case studies of companies failing to successfully adjust their strategy to create value

for their foreign customers, such as in the case of Wal-Mart’s expansion into Germany or

Target’s expansion into Canada (Ghemawat).

In order to avoid becoming another case study of how to not succeed in a foreign market,

companies wishing to expand abroad must evaluate the challenges they will face during the

process. One of the most widely accepted methodologies for evaluating these challenges is the

CAGE Distance Framework developed by Pankaj Ghemawat. This methodology measures the

“distance” between two countries across four dimensions: cultural, administrative, geographic,

and economic. Each dimension of distance encompasses a different set of factors that influence

business practices which can help a company understand the differences, difficulties, and

opportunities of doing business in a particular country as opposed to their own (Kennedy).

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The first dimension of distance in the CAGE Distance Framework is cultural distance.

Cultural distance is often what people think of first when considering the difficulties of doing

business in another country. It encompasses the invisible norms that shape the behavior, beliefs,

and practices of individuals and groups. This includes language, religion, values, and social

norms. The more similar two countries are in regards to these dimensions of society, the closer

they are on the spectrum of cultural distance–and the more likely the foreign market is to be

receptive to a similar approach of introducing a product to what was used in the home market

(Ghemawat). Two countries that have a shared history of colonialism are also very likely to be

closer on the spectrum of cultural distance. However, just because two countries have a greater

degree of cultural distance does not necessarily mean that a company should no longer enter that

market. In some cases, the market is still viable with a potential to create value in it–but it is

essential to recognize what those cultural differences are and adjust your strategy accordingly.

The second dimension of the CAGE Distance Framework encompasses administrative

distance. Administrative distance represents all differences in the legal and political structures of

two countries. Differences in the laws and regulations of two countries in regards to trade, labor,

and transportation can severely affect a business’s ability to be successful in that

country–particularly if their competitive advantage is related to one of those factors (Kennedy).

Moreover, failure to recognize these differences can lead to legal issues and conflict. In addition,

the overall political structure of a country can create distance. How closely tied business and

government are, the level of corruption in a country, and how sound its institutions are,

particularly the judicial system, impact how a successful business operates in that country. A

company looking to enter a foreign market must research this dimension of distance extensively

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to understand whether they believe they can and are willing to successfully operate within the

specific legal and political structure of that country.

The third dimension of the CAGE Distance Framework is geographic distance.

Geographic distance involves the physical distance between two countries as well as any other

barriers that arise from that separation. Typically, a company is more likely to be successful in a

market that is closer to its headquarters than one that is further away (Ghemawat). This is

because the greater distance between two countries increases the cost and time required for

transportation of products as well as potential complications in communication that arise from

operating in different time zones (Kennedy). Furthermore, geographic barriers such as bodies of

water and mountain ranges can increase the difficulty in transportation and require further

planning (Ghemawat). These factors must be taken into consideration when deciding whether it

is worth it and truly profitable to enter a foreign market.

The fourth and final dimension of the CAGE Distance Framework is economic distance.

Economic distance encompasses all other factors related to the economy of each country that

impact the ability of a company to succeed. For example, entering a country that uses the same

currency and economic systems will result in greater ease of transactions. Moreover, entering a

country with a similar GDP per capita increases the likelihood of being able to market the

product in the same way. Any differences in economic conditions or systems indicate that

extensive planning and adjustment will be necessary to be successful in that country (Kennedy).

Distance does not necessarily indicate disaster; however, it is essential that companies

recognize the difficulties they may face when entering certain countries. From there, they must

select countries in which they believe they can truly be successful despite distance through

extensive planning and careful consideration.

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Challenges of Entering the European Market

Europe is many companies’ first choices for a location to expand their successful U.S.

product into a global brand. This makes sense; on a spectrum of distance, Europe is closer

geographically than other markets and has similar standards of living, democratic forms of

governance, and large populations of English speakers. Also, the collection of most of the

wealthiest countries in Europe into one economic unit, the European Union, makes the market

seem even more enticing (McIntyre). However, focusing on the similarities of the United States

and Europe and the appeal of the E.U. often leads businesses into a trap of false comfort.

While English may be the common language spoken around the world in business, that

does not mean that it is enough to be successful. Europe features a large variety of native

languages, and even within those languages there are often many different dialects spoken

depending on the specific location and culture. It is important to be sensitive to the specific

language and dialect of a culture, as words and phrases can have very different meanings

depending on the language and dialect–even if the language largely spoken in that culture is

English. Moreover, countries in Europe vary from the United States and each other in their

beliefs and customs, so a successful marketing strategy in one country may be offensive or

irrelevant in another.

If a company wants to successfully market to an audience in a specific country or culture,

they need to be sure to be using the right language, ideas, words, and phrases to make a lasting

connection, and that is only possible if they pay specific attention to the local culture and involve

or hire local individuals in their decision-making. This means that it may not be wise to expand

to a large number of markets in Europe at once; a one-size-fits-all strategy is not possible across

this expansive continent, even in the English-speaking countries, and extensive research is

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needed for each individual market. On the topic of marketing, it is also important to note that

Europeans are not used to the types of invasive marketing strategies deployed in the American

market. European sports do not feature frequent commercial breaks, and Europeans do not

appreciate the “bold and busy packaging you see on many American products” (“4 Differences

between American & European Business Culture”). They also are less impressed by displays of

wealth and success; they prefer products to speak for themselves with much simpler branding.

Moreover, not only does the language and culture vary between countries, they also vary

in economic processes. Despite many countries being members of the European Union and

having synchronized economic policy, they differ in their preference for cash versus virtual

transactions as well as their ability to support virtual transactions depending on their level of

internet connectivity. Also, while many companies use the United Kingdom as their starting

point for Europe due to its use of English, geographic accessibility, and cultural proximity

because of its shared colonial history with the United States, it is important to note that it is no

longer a member state of the European Union and has different currency, economic policies, and

regulations than the other prominent European markets. This means that just because a company

has found success navigating the market in the United Kingdom does not mean that it will find

success in the European Union (“4 Differences between American & European Business

Culture”).

A mistake managers often make is thinking that Europe is a project they can focus on for

a few months and then leave to others. Instead, expanding into Europe, while a potentially

extremely profitable strategy, is a significant undertaking that requires careful consideration.

Another pitfall that many successful American companies fall into is forgetting how hard they

had to work to win over their audience in the United States; often, it has been many years since

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their original entrance into the American market, and they have forgotten how important

marketing and sales are to generate a loyal consumer base. This phenomenon is often referred to

as “success amnesia”. It is absolutely essential to hire people who understand the specific

European market you are entering and can focus on selling the unique competitive advantage of

the company to a new audience with different values and expectations (McIntyre). Once again,

this is why it is so important to focus on a few core markets in Europe at the beginning of

expansion; you must learn how to sell to your audience in the format that is acceptable for that

country and culture in order to be successful, and this takes time and dedication.

Alcohol in Europe

Alcohol has always been a staple of European culture. For most of Western history, water

was not reliably safe to drink. As a result, for most of the last 10,000 years, people turned to

alternative beverages such as coffee and water for their daily sources of fluids and calories. This

gave alcohol the well-deserved title of “aqua vitae” in the Middle Ages, or “the water of life.”

Resultantly, while intoxication was not the goal of alcohol consumption, “the ‘side effects’ of

this constant, low-level intake must have been almost universal” and “throughout Western

history the normal state of mind may have been one of inebriation” (Vallee). In many cultures,

alcohol also served as a distraction from the dullness and exhaustion of daily life and pains

which could not be remedied during this time.

While alcohol was unintentionally consumed beforehand, the advent of alcohol coincides

with the arrival of agriculture. The abundance of barley and wheat produced on the river deltas

of Egypt and Mesopotamia naturally led to the development of beer by 3,000 B.C. Similarly,

agriculture allowed for the domestication of specific grapes which led to development of

cultivated wine by about 6,000 B.C in Armenia. In the past, beer was considered the drink of

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commoners, while wine was solely consumed by the affluent. However, in about 30 B.C., wine

became available to the greater population in Rome as a result of the widespread expansion of

vineyards driving prices down.

For the first 9,000 years of its consumption, the alcohol content in beverages such as

mead, beer, and wine was relatively low. In about 700 A.D., however, Arab alchemists changed

the game by introducing highly concentrated alcohol through the process of distillation. This

method spread to Europe in about 1100 A.D. through the medical school in Salerno, Italy and

gradually spread to northern Europe. This was the first significant change in alcohol

consumption since the dawn of Western civilization.

Not only did wine and beer become stronger as a result of this change, but Europe also

began to consume a new form of distilled alcohol: spirits. The dispersion of spirit consumption

was closely tied with widespread plagues in Europe in the 14th century. While spirits were not a

cure for disease, they did help alleviate pain and enhance the moods of victims. Following the

end of the plague in Europe was a time of urbanization and self-indulgence that resulted in a

virtual continentwide bender (Vallee). It is estimated that in Central Europe during the 16th

century per-capita alcohol consumption was about 1 to 1.5 liters per day (Kümin). This constant

inebriation was only partially curtailed in the 17th century by the popularization of beverages

made from boiled water such as coffee, tea, and cocoa. At the end of the 19th century, the

invention of filtered and treated water coincided with the spread of religious anti-alcohol

sentiment resulting in a significant part of the population turning away from alcohol

consumption (Vallee). By this time, per-capita alcohol consumption decreased to 1 liter per day,

though with huge social and geographic variations (Kümin). Moreover, the 19th century also

introduced “the recognition of alcohol dependence as an illness” (Vallee). The acknowledgement

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of alcohol abuse leading to liver disease and mental dysfunction combined with social

condemnation of drunkenness further enabled the spreading of the temperance movement in

Europe (Vallee).

These movements led to some European countries actually enforcing prohibition laws

like that of the United States in the 1910s and 1920s including Iceland, Norway, Hungary, and

Finland (Chepkemoi). In other countries, governments instead focused on encouraging people to

turn away from beverages with high alcohol content to those with low alcohol content. For

example, Belgium, Denmark, and the UK chose to increase taxation of beverages with higher

alcohol content in order to shift consumption patterns. As a result of the affluence and

celebration in the wake of the end of World War II, the 1950s saw a reimergence of high alcohol

consumption in the West–that has not been tempered since (D. Smith).

This thesis talks about trends in alcohol consumption in Europe as a whole; however,

traditionally, since the departure from drinking alcohol solely as “the water of life”, alcohol

consumption culture in Europe was split between the North/East and South. In the past, Northern

and Eastern drinkers would consume more grain-based drinks such as beer and spirits often with

the purpose of getting drunk. Southerners, on the other hand, would be more inclined to drink

wine as part of a daily diet with meals. While this split does still maintain its legacy in modern

drinking culture, it is much less profound. Since the 1960s, the globalization of the alcohol

industry and convergence of cultures has made it so Northerners and Easterners will often drink

wine and during meals and Southerners will consume grain-based drinks and outside of meal

time (Engs). In fact, the late 1970s and early 1980s saw young people embracing these “new”

beverages as part of youth pop culture–“beer in the south and wine in the north” (D. Smith).

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Still, the splits in divisions in drinking behavior are deeply rooted in European culture

and are subdivided by transnational regions today. These divisions mean that it is impossible to

describe a single drinking culture in Europe, but the aforementioned internationalization dilutes

these differences and enables us to identify overall trends in modern drinking behavior in

Europe. The legacy of alcohol as “the water of life” has not escaped Europe; still down from 1 to

1.5 liters of alcohol per day, according to the World Health Organization, “each year in Europe,

every person aged 15 and over consumes, on average, 9.5 litres of pure alcohol, which is

equivalent to around 190 litres of beer, 80 litres of wine or 24 litres of spirits”, representing the

highest alcohol consumption per capita in the world (Bello). In fact, as of 2019, nine out of ten of

the countries with the highest consumption were European Union member states. This is even

after a decrease of yearly alcohol consumption across the continent between 2000 and 2019 of

2.5 liters. Moreover, while there is great variation across the continent (in part due to the

prevalence of Eastern countries with “Muslim-majority populations, for whom the consumption

of alcohol is prohibited and condemned”), within the European Union there are only five

countries with annual per capita consumption below 10 liters (Italy, Malta, Croatia, Sweden, and

the Netherlands), none of which are below 8 (Bello).

Across the continent, there are also some key trends in preference taking place at the

moment. There is an increased demand for specialty, or craft, beer, with 6,000 breweries entering

the market from 2020 to 2021. Companies such as Anheuser-Busch InBev are already taking

note of this and “bringing craft beers as an essential part of their growth plans” (“Europe

Alcoholic Beverage Market Analysis - Industry Report - Trends, Size & Share”). In addition,

consumers are now demanding both unique and high-quality alcoholic beverages. This is causing

companies to have to be innovative with new beverages and adding twists to old concepts

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including introducing exotic ingredients to their alcoholic beverages. For example, “in March

2022, Whitley Neill, a premium gin brand in the United Kingdom, launched a new gin variant,

Oriental Spiced Gin” which “consists of different botanicals and spices like coriander, ginger,

chili, cumin, saffron, star anise, and grains of paradise” (“Europe Alcoholic Beverage Market

Analysis - Industry Report - Trends, Size & Share”). Moreover, there is also a trend of concern

for health in the European audience which has caused companies to have to create more

functional drinks that have fewer negative health impacts. This has caused a growth in demand

for natural wines and using natural ingredients for gin production such as in the case of Oriental

Spiced Gin (“Europe Alcoholic Beverage Market Analysis - Industry Report - Trends, Size &

Share”).

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Hard Seltzers

Hard seltzers are the 21st century disruptors of the alcohol market. These beverages

consist of “carbonated water combined with alcohol and fruit flavoring” and are direct

challengers to other alcoholic beverages including beer, in particular (Hagan). In 2019, the

category saw an increase of 226% followed by an increase of 165% in 2020 (Weitz). Category

leader White Claw alone saw a staggering increase of sales of 275% in 2020 (Schwarz). Even

after accounting for the gradual steadying of market growth, a report from Grand View Research

in 2019 predicted a “compound annual growth rate (CAGR) of 16.2% from 2020 to 2027” of the

market size of hard seltzer worldwide, taking it from the already impressive $4.4 billion to $14.5

billion (“Hard Seltzer Market Size, Share & Trends Analysis Report By ABV Content

(1.0% To 4.9%, 5.0% To 6.9%), By Distribution Channel (On-Trade, Off-Trade), By Region,

And Segment Forecasts, 2020 - 2027”). This aligns with the decrease of growth to 30% by July

2021 (Weitz). Regardless of the end of the initial hard seltzer boom, the hard seltzer category has

situated itself firmly within the alcohol market, and it is here to stay. This section seeks to give

an overview of the hard seltzer market.

Origin of Hard Seltzers

While canned alternatives to beer and wine such as Mike’s Hard Lemonade and

Budweiser’s Lime-a-rita have existed for years, they have often been limited in their scope of

marketing to women and lacked the appeal to truly challenge other persistent categories in the

industry. In 1993, the first seltzer-like drink, Zima by Coors Brewing Company, entered the

alcohol market and experienced moderate success, but a lack of strategic marketing and taste

appeal led it to eventually be taken off the market.

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The first true hard seltzer was developed by a man named Nick Shields, an owner of a

small beer brand, in 2012 after witnessing a group of women all ordering vodka sodas. He was

inspired to develop something better that would “bridge the gap between beer, wine, and

cocktails with a new kind of alcoholic beverage” (Gray). He then went on to develop a

fermentation process similar to brewing beer using sugar, water, and yeast followed by the

addition of fruit flavoring that would be the advent of the hard seltzer.

Shields used this process to create the first hard seltzer brand, SpikedSeltzer, in 2013. The

success of this brand led it to be noticed by Anheuser-Busch InBev which acquired his company,

Boathouse Beverage LLC, in 2015. By 2016, others had recognized the potential for the hard

seltzer category, and more brands, including two of its current leaders, White Claw and Truly,

had entered the market (Gray).

Target Audience

One of the reasons for the growing success of the hard seltzer category is that the leaders

such as White Claw and Truly have designed brands that appeal to a large variety of consumers.

Nielsen reports that the beverage “is most popular among Caucasians between the ages of 21 and

44 from affluent neighborhoods, and it appeals to both genders” (Dimitrakis). Hard seltzers have

been able to broaden their customer base so well and experience exponential growth because

they, after the initial failure of Bon & Viv discussed in the Bud Light Seltzer brand evaluation,

have focused on gender-neutral marketing. While hard seltzers do provide an opportunity for

women (and men) who do not enjoy drinking beer but want a similarly convenient alternative to

have one, the hard seltzer market has done this while avoiding the limiting and, frankly, sexist,

feminization of their products that was employed by other beer alternatives (such as Smirnoff Ice

and wine coolers). As a result, while there is still a bias towards women as customers, this is

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limited, with leader White Claw having a customer base that “is nearly split down the middle:

53% women and 47% men” (MAKE Digital Team).

Moreover, the audience for hard seltzers is broad because it appeals to many of the

market demands of the target age range of consumers indicated by Nielsen previously, 21 to 44,

meaning mainly those from the Millennial and Gen Z generations. First, hard seltzers are

perceived as being healthier than other alcoholic alternatives (whether or not this is actually true

is addressed in the following section, “The ‘Healthy’ Alternative”). Millennials and Gen Zers

have a focus on creating a sense of holistic wellness in their lives, with the Natural Marketing

Institute finding that 77% of Millennials “view a healthy, balanced lifestyle as ‘very’ or

‘extremely’ important”. Next, hard seltzer brands listen to their audience and try to provide a

wide variety of desired flavors to consumers that they previously had not been able to find in an

alcoholic beverage. Consumers also have the ability to purchase hard seltzers in variety packs

which appeals to their desire for diversity and the ability to share the beverage with others in

social settings. This option is clearly desirable as 63% of sales for hard seltzers come from

variety packs. In addition, increased income inequality matched with rising costs and lower

wages have caused those in the Millenial and Gen Z generations to begin prioritizing experiences

and shared moments with friends as opposed to materialistic goods. In response, hard seltzer

brands have marketed themselves as “lifestyle brands”, pairing themselves through marketing

with social events and exciting activities such as boating and hiking. Finally, Millennials and

Gen Zers spend a lot of time consuming digital media, and hard seltzer brands have responded to

this. “Hard seltzer brands spent $41.8 million on digital advertising between January and

October 2021” (Dimitrakis). The brands have also benefited from word-of-mouth advertising by

appealing to the social media generation, where popularized phrases like “there are no laws when

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you drink Claws” and social media accounts such as “whiteclawmeme” and

“whiteclawchronicals” generate free publicity and solidify the brands’ position as true lifestyle

brands (Dimitrakis).

While the market trends referenced in the previous paragraph appeal directly towards

Millennials and Gen Zers, they are widely applicable to many individuals living in the 21st

century and can also apply to those of older and upcoming alcohol consuming generations. This

universality is the key to the category’s growing and predicted future success in the alcohol

market.

The “Healthy” Alternative

Consumers are supposedly attracted to hard seltzers because they have been marketed as

a healthier and more flavorful alternative to other alcoholic beverages. However, there are some

beers that do have fewer calories than hard seltzers, so how can this be true?

Hard seltzers consistently market themselves as having 100 calories, while beers range

from approximately 64 to 175 calories. In general, there is much less consistency and emphasis

on minimizing calories in the beer market. Hard seltzers also avoid using grains in production

which allow brands to advertise having two or fewer carbs per drink, where again beer brands

feature a much wider range of carb counts. Finally, while both seltzers and beers average at

approximately 5% alcohol by volume, hard seltzers like White Claw and Truly stay consistent at

this mark while beers range from 2.3% to 8%. This consistency in production has allowed hard

seltzer brands to successfully market their products as a healthy alternative to beer despite this

not always being the case (Sukesh).

This reputation as the healthy alternative to beers and other alcoholic beverages is key to

appealing to the current target audience of casual alcoholic beverages, Millennials and Gen Zers.

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Health conscious Gen Z is purchasing less alcohol than their Millennial counterparts, with only

84% purchasing alcohol consistently. This is down from 90% of Millennials who also are less

likely to purchase alcohol than the Gen X and Boomer generations. When these groups do

purchase alcohol, they, particularly Gen Zers, are more likely to choose options that have less

alcohol content, fewer calories and carbs, and more variety in flavor. This had led younger

members of these groups to turn to hard seltzers (Carswell).

Another benefit of hard seltzers that appeals to its consumers is its placement in the

Ready-to-Drink category. As opposed to cocktails which also provide consumers with more

flavorful options than wine and beer, hard seltzers are convenient to purchase from a grocery

store and to drink in a variety of locations. This is a strong contributing factor married with the

perception of being a healthy option as to why the younger generations are turning to these

beverages (Lin).

Moreover, 49% of Gen Z and 38% of Millennials consider the ability to have a good time

as a priority in selecting alcoholic beverages, leading them to focus more on seltzers which

provide a lighter and more flavorful alternative in social settings (Carswell). With 42.28% of the

United States population consisting of the Millennial and Gen Z generations as of 2020 and

much of the Gen Z generation approaching the legal age of alcohol consumption, it is essential

that companies recognize the significance of this trend and focus on strategies such as the

emphasis on their hard seltzer brands in order to appeal to these generations (Duffin).

COVID-19

Furthermore, the COVID-19 pandemic has accelerated the consumer shift towards the

already growing trend of seltzers. When the pandemic began, consumers turned away from craft

breweries and restaurants towards popular brands they could quickly grab from the grocery store.

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The younger generation, previously enthralled with the craft brewery trend, began turning even

more towards hard seltzer brands like White Claw and Truly that met their consumer preferences

(Swartz). Even as some regulations and customs changed during the pandemic, customers

continued returning to the convenience of drinking hard seltzers at home.

Joining the Competition

Instead of seeing hard seltzers as a threat to their survival, breweries commonly known

for producing beer have recognized the significance of the hard seltzer movement and have

begun embracing their own brands to challenge the core leaders today such as White Claw. As

stated by Ann Legan, the VP of Brand Marketing at Corona, “seltzer is a huge trend that has

impacted the beer industry in the past year, and we don’t see that stopping anytime soon”

(Swartz). Leading players such as Anheuser-Busch InBev, Boston Beer Company, Molson Coors

Beverage Company, New Belgium Brewing Company, and Heineken have already introduced

their own hard seltzer brands into the market, some having released multiple.

Fizzling Out?

Some worry that the industry is becoming saturated from all of these market entries. This

argument is not without basis; while there were only 10 hard seltzer brands in the beginning

2018, as of 2020 there were over 65 and this number continues to grow as many alcoholic and

non-alcoholic beverage companies attempt to join in on the craze. Consumers walking down the

aisles in the grocery store now have an overwhelming number of seltzers from which to choose

(Lin). All of those entranced by the hard seltzer craze were jolted with a rude awakening in

October 2021 when the popular brand Truly’s parent company, Boston Beer Company, threw out

millions of cases of the beverage. This was, unfortunately, inevitable; still caught up in the hype

of the last few years of continued success, many hard seltzer brands, including Boston Beer,

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overestimated their predicted growth and success. Now, left with an excess of product with a

shelf life, it had no choice but to throw out its product.

Other companies such as Constellation Brands also claim to be facing similar cases of

excessive and costly inventory due to overly optimistic predictions. In a more extreme case,

other companies are having to completely reconsider the viability of their brands in the market.

In July of 2021, Molson Coors had to discontinue its Coors Seltzer in order to focus on its two

more successful brands in the crowded market, Vizzy and Topo Chico. While the over-saturation

of the market is part of the reason for the slow down, other factors also likely had an impact. For

example, during summer 2021, many people began to return to bars and restaurants after staying

home during the pandemic, and they began opting for the more exciting cocktails once again in

the place of standard hard seltzers. In addition, for those that remained drinking at home, the

invention of the canned RTD Cocktail category may have taken some of their attention away

from hard seltzers.

However, while the initial craze is over, hard seltzers have earned their place in the

alcohol industry and are here to stay. It was inevitable that the remarkable three digit growth of

the industry would have to slow down (Hartmans). From 2022 to 2023, “the global hard seltzer

market grew from $12.45 billion in 2022 to $14.65 billion in 2023 at a compound annual growth

rate (CAGR) of 17.7%” (“Hard Seltzer Global Market Report 2023: Rising Consumer Preference

for Carbonated Beverages with Lower Alcohol Content Drives Growth”). Now, like in other

steady markets in the alcohol industry, it will be essential for brands to truly differentiate

themselves and focus on creating a strong distribution network in order to remain relevant and

earn their place amongst the limited shelf space of grocery stores–and, while many startups will

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begin to fizzle out, the strongest players have been and will continue to build upon their previous

success as the category continues to grow.

Beyond the United States

While hard seltzers have taken hold of the alcohol market in America, globally this has

been an isolated incident thus far. Producers of seltzers have not yet tapped the market potential

of other regions such as Europe, though they have begun considering the option and some have

already begun experimenting in the market. As of 2023, the global hard seltzer market has

revenue worth $21.65 billion; the United States market generates $17.24 billion, or

approximately 80%, of that revenue (“Hard Seltzer - Worldwide: Statista Market dForecast).

While this number indicates a clear continued bias toward the home market of the United States,

the other 20% being generated worldwide should still give hope to companies currently

expanding or looking to expand their products abroad. The current primary markets to which

hard seltzers have expanded are Canada, Australia, and the United Kingdom. The first brand to

make its way to the United Kingdom was Mike’s Hard Seltzer in late 2019 followed by the much

anticipated arrival of White Claw in June 2020. Other seltzer brands have since followed their

lead and begun to spread out across the continent (Cawood). Hard seltzers have changed the

alcohol industry in America, and the next few years will be key to understanding their potential

in the global market.

Harper 25

Brand Profiles

The seven brands that will be the focus of this thesis are White Claw, Truly, Bud Light

Seltzer, Vizzy, Topo Chico, Mike’s Hard Seltzer, and Pure Piraña due to their profiles as major

players in the market. White Claw and Truly are included because they have consistently been

the category leaders since hard seltzers first began gaining prominence in 2016. Bud Light

Seltzer was selected in turn because it has also performed increasingly well in recent years and is

now considered the third-largest brand in the category in the United States. Alternatively, Vizzy

has been referenced as a “brand to watch” by NielsenIQ and has been growing quickly in

prominence due to its unique positioning as the “healthy” choice. Mike’s Hard Seltzer and Topo

Chico Hard Seltzer are both significant players due to their association with beverages that are

already household names, Mike’s Hard Lemonade and Topo Chico. In addition, they are both

being promoted by companies that each offer tremendous benefits in their own way, Mark

Anthony Brands and Coca-Cola, respectively. Finally, Pure Piraña was selected because of its

unique global strategy and absence in the United States market.

White Claw

The phrase “White Claw'' is, at this point, almost synonymous with the phrase “hard

seltzer”. Founded in 2016, the brand White Claw is part of Canada native Anthony von Mandl’s

expansive alcohol company, Mark Anthony Brands, Inc. Before venturing into hard seltzers, von

Mandl had already experimented with flavored malt beverages with the 1996 brand Mike’s Hard

Lemonade which features alcoholic lemonade (Fisk).

While seltzers had existed since 2013, White Claw’s entrance revolutionized the

category. Unlike other hard seltzer and canned alcoholic beverages that targeted a very

traditionally feminine audience with pink colors and sweet flavors, White Claw’s brand featured

Harper 26

a variety of simple flavors including Black Cherry, Natural Lime, and Mango and gender-neutral

minimalist silver cans with a black-and-white classic wave logo. This changed the perception of

hard seltzers; no longer were they just drinks for women, instead they were a beverage that could

be shared amongst all in fun social gatherings.

As this image evolved, White Claw began to not just represent a beverage for its

consumers, but, instead, a feeling. White Claws became synonymous with having a good time.

People wanted to be seen in groups–and on Instagram–with their visually appealing cans. They

were convenient, portable, and seemingly healthy–a badge of honor for many (Gray).

This reputation eventually evolved into two iconic phrases being associated with the

brand in 2019, the year White Claw truly took off. First, YouTube personality Trevor Wallace

popularized the phrase “ain’t no laws when you’re drinking claws” that positively isolated White

Claw from other alcoholic beverages. Not long after, celebrities began calling 2019 a “White

Claw Summer '', and the brand came to symbolize the summer itself; White Claw began to

appear in home decor and halloween costumes. While the White Claw Summer ended and some

of the hype died down, White Claw continues to be a beverage of choice for many and the

feeling associated with it has not disappeared (Fisk).

As their brand grew in popularity, so did their sales numbers, increasing at triple digit

rates for years. By 2019, White Claw was by far the largest seller of hard seltzers and had

captured over 50% of all hard seltzer sales. White Claw has continued this legacy since, still

capturing the top seller position in the category and, in conjunction with Truly, the second most

popular brand, continues to hold the majority of the market share of the category (Gray).

In 2020, the brand expanded into Canada, the United Kingdom, the Netherlands, and

Ireland and immediately became the #1 hard seltzer in these locations capturing 25% of the

Harper 27

market. Stating that they have “been blown away by the success of White Claw in every market

[they’ve] entered to date”, White Claw then decided to further expand across Europe to Austria,

Belgium, Finland, Germany, Switzerland, and Sweden in June 2021 (“White Claw Enters Five

New European Markets”). In June 2022, White Claw reportedly continued to lead the hard

seltzer category in the United Kingdom capturing 42.4% of the market with sales of 7.2 million

pounds and growth of 69% (Leonard-Bedwell). It appears, at least for now, that White Claw’s

leadership in the hard seltzer category will not be constrained to the United States market.

Truly

Also arriving in the market in 2016 was Truly, White Claw’s continued closest

competitor in the United States. The Truly brand is a part of Boston Beer Company, an extremely

successful alcohol company that has featured brands like Sam Adams, Dogfish Head, and Angry

Orchard. Like Mark Anthony Brands, before the creation of the Truly brand, Boston Beer

Company had already begun exploring beyond beer with the introduction of its Twisted Tea

brand in 2001.

While it did not have the immediate explosion of popularity that White Claw did, Truly

was able to benefit from White Claw popularizing hard seltzers by using the excitement around

the category to generate an audience for their own unique brand. Unlike White Claw, which

relies on its core flavors to continuously attract return customers, Truly proudly advertises their

slogan claiming that “no one is just one flavor”. Their competitive advantage lies in the variety

they offer, ranging from different lines of flavor categories to lines with higher alcohol content to

lines with fewer calories and only one gram of sugar (Pomranz).

As of today, the ever-changing portfolio of Truly includes the Berry Mix Back, the Citrus

Mix Pack, the Tropical Mix Pack, the Lemonade Mix Pack (including a separate Lemonade

Harper 28

Freeze Pop option), the Iced Tea Mix Pack, the Punch Mix Pack, the Holiday Party Pack, and the

newest addition, the Margarita Style Mix Pack–leading to over 30 unique flavors (“Truly Hard

Seltzer: No One Is Just One Flavor”). By comparison, White Claw, despite its position as the

leader of the category, has only 12 core flavors it has been consistently marketing. It is important

to note that recently, in the second half of 2022 and early 2023, White Claw has begun to

introduce some new flavor packs and even a vodka brand into its mix (“Our Products”). This is

likely an attempt to lessen Truly’s competitive advantage and will be an important trend for the

industry to watch moving forward.

However, while Truly has more flavors than White Claw and other brands, it is not only

this characteristic that gives it its competitive advantage. Their flavors are truly innovative and

unique from each other, giving their consumers variety they may be missing in other beverages.

They continue to evolve their portfolio as consumers ask for new options based on their own

specific preference (Pomranz). This has allowed them to gain customers that White Claw has not

been able to capture, to maintain sales growth over the years, and to capture the second highest

market share in the category. This has led White Claw and Truly combined to hold almost 75%

of the market (Gray). Truly has yet to announce a global market expansion for their brand.

Bud Light Seltzer

Bud Light Seltzer, a member of the Anheuser-Busch family, is the latest and most

successful brand in the company’s involvement in the hard seltzer category. Seeing the decline in

demand for beer and knowing it needed to expand its portfolio in order to maintain sustained

growth, Anheuser-Busch made the significant decision to acquire Nick Shields’s company,

Boathouse Beverage LLC, in order to gain control of the revolutionary first true hard seltzer

brand, SpikedSeltzer.

Harper 29

This brand had small yet steady and growing success; however, in 2019 Anheuser-Busch

attempted to gain further success amongst competitors like Truly and White Claw by rebranding

SpikedSeltzer to be Bon & Viv, a brand that targeted women with mermaids as a major

marketing tool. This failed to gain any significant prominence or sales, along with its next

attempt in the hard seltzer market, the Natural Light Seltzer. This led former head of

Anheuser-Busch InBev’s North American business, Michel Doukeris, to create a new business

unit called Beyond Beer to specifically focus on the opportunities in the seltzer, canned wine,

and cocktail categories.

In 2020, with this new foundation intact, Anheuser-Busch InBev gave the hard seltzer

category another shot with the introduction of the Bud Light Seltzer, hoping to benefit from the

extreme success of the Bud Light brand. Much like Truly, the focus of the strategy of Bud Light

Seltzer has been creating variety in the number and types of flavors and variety packs. As a result

of its success in creating diverse and appealing flavors, despite the large number of other seltzers

in the market fighting for prominence in the shadow of White Claw and Truly, Bud Light Seltzer

has managed to obtain 10% of the hard seltzer market and is currently the third most successful

brand in the category in the United States (Gray). This success led Anheuser-Busch InBev to

introduce Bud Light Seltzer into the United Kingdom market in April 2021 (Hook). In June

2022, Bud Light Seltzer had also captured the third place position in the United Kingdom behind

White Claw and Topo Chico having increased sales by 189% to 920 thousand pounds within a

year (Leonard-Bedwell). The brand has not yet indicated any intention of expanding across the

continent.

Harper 30

Vizzy

Vizzy, although not yet reporting revenues resembling any of the top three brands, is also

an extremely important player in the hard seltzer market right now and has been recognized as a

brand to watch. Vizzy represents Molson Coors’s latest attempt in early 2020 at making a mark

in the hard seltzer category.

Vizzy’s key competitive advantage is that it has “all of the things the other hard seltzers

have but with a meaningful addition that drinkers actually care about, antioxidant vitamin C”

(Struble). This plays directly into the target consumer for hard seltzers; someone who wants to

enjoy an alcoholic beverage while also promoting their health. This key strength combined with

appealing core flavors has allowed Vizzy to grow its sales significantly in the last few years,

growing by 51% in the third quarter of 2021 when most brands were in a slump, and is beginning

to be considered the number four brand.

This success is in part due to Molson Coors taking a bet on the hard seltzer market by

expanding the capacity of its seltzer and innovation capacity by 400% as of December 2020.

Moreover, when Molson Coors decided to discontinue its Coors Seltzer, it then put even more

direct attention on Vizzy and its other remaining hard seltzer, Topo Chico. Molson Coors

recognizes the significance of the hard seltzer market and, unlike other brands, has invested

significantly in a product that stands out in the crowd with its unique health benefits–even from

White Claw and Truly (Struble).

However, this success could be at risk; the Center for Science in the Public Interest and

Consumer Federation of America have made a public request to the Food and Drug

Administration asking them to pursue legal action against Vizzy for illegally marketing the

health benefits of their product. The letter references a 2015 document in which the FDA

Harper 31

claimed that beverages that mixed alcohol with vitamins and minerals were not appropriate, and

that it is wrong for the company to advertise Vizzy as a “"healthful source of nutrients, obscuring

the fact that alcoholic beverages provide empty calories, are associated with serious health

conditions and can impair the body's metabolism of nutrients" (Doering). While the FDA has not

taken action, this case does further the question of how “healthy” hard seltzers are and how much

longer they will be able to use this as a competitive advantage against other alcohol categories.

Regardless, for now, Vizzy is here to stay with its unique marketing, and it is likely that other

brands will follow their lead (Doering). Vizzy has not yet expanded nor announced intention to

expand into the European market.

Topo Chico

Topo Chico is a truly unique case in the hard seltzer category; the story of Topo Chico

began in 1895 when the company began bottling mineral water from a spring in Monterrey,

Mexico in which an Aztec princess was said to have been restored back to health after falling ill

in the 1400s. The name of the beverage refers to a mountain near this spring called the Cerro del

Topo Chico. The sparkling water company grew in success in Mexico and eventually began to

slowly enter the United States market with a modest distribution system throughout Texas,

Georgia, Florida, and Chicago in 1987. At this point, the drink was hard to find in the United

States and primarily purchased by expat Mexicans. Slowly, Topo Chico expanded into more

stores, and by 2015 a cult following had developed–particularly in Texas. Topo Chico also

benefited from the trend of consumers looking toward sparking water for a healthier alternative

to sugary drinks, and, by “2016, Los Angeles Magazine ranked Topo Chico as the top sparkling

water on the market, ahead of other popular brands, including Perrier, San Pellegrino and

LaCroix” (Gerlsbeck).

Harper 32

This proven success led Coca-Cola to acquire the brand in 2017 (as part of its strategy to

become a total beverage company) and immediately widen its distribution. This led to a boom in

sales with the brand growing by 39% from 2018 to 2019. A key challenge for the company was

not getting the market to buy the drink but instead getting enough of the drink to the market to

meet demand. This is because Topo Chico continues to only be sourced from the same spring

even after the acquisition of the company by Coca-Cola (Kambhampaty). Riding on the success

of this distribution, in September 2020 the company released Topo Chico Hard Seltzer in Latin

America followed by European markets of Austria, the United Kingdom, Greece, Ireland, and

Ukraine in early 2021 (“Coca-Cola to Launch New Topo Chico Hard Seltzer in Europe in

2021”). As of June 2022, Topo Chico reportedly has captured the second most market share,

after White Claw, in the United Kingdom with 11.4%. This represents a 160% increase to 1.9

million pounds within a year (Leonard-Bedwell).

Unlike other hard seltzer brands that proved their success in the United States and then

decided to take their brands abroad, it was after these successes that Topo Chico Hard Seltzer

was finally introduced in limited American markets in March 2021–just in time for another hard

seltzer summer. Within a month, Topo Chico Hard Seltzer had acquired almost 20% of the

market in Texas, its unofficial home base, and 3.2% of the market nationwide (Noel). Building

on this success, in January 2022 the variety pack was released nationwide while, simultaneously,

the company also released a new line of seltzers called Topo Chico Ranch Water Hard Seltzer

inspired by the cocktail most popular in Texas, Ranch Water (Molson Coors).

Topo Chico’s approach of testing the hard seltzer brand in select and global markets

before reaching the competitive arena of the United States hard seltzer market makes it unique

from leading brands like White Claw and Truly–and this, combined with Coca-Cola’s existing

Harper 33

global network, may make it a key competitor to these brands during the expansion of hard

seltzers into the global market despite its lagging start.

Mike’s Hard Seltzer

Long before Anthony von Mandl brought upon the world the White Claw Summer, he

and his company Mark Anthony Brewing had already begun to revolutionize the alcohol market

through another beer alternative: Mike’s Hard Lemonade. Von Mandl noticed that “up to 25% of

guys didn’t particularly want to drink beer, but couldn’t be seen holding anything else in their

hand” (“Mike's Hard Lemonade: Company Profile”). Due to its unique and tasty flavor

compared to the other canned beverage available at the time, Mike’s Hard Lemonade sold 10

million cases without a premeditated marketing campaign. Since then, the company has

continued to release innovative flavors in addition to its original lemonade pack and has

maintained a strong following (“Mike's Hard Lemonade: Company Profile”).

Almost inevitably, in the wake of the sustained success of its White Claw brand and the

entrance of many strong competitors to the category, in February 2021 Mark Anthony Brewing

released Mike’s Hard Seltzer to the world. This new spin on their beloved beverage has “been

incredibly incremental to the portfolio, attracting new 21- to 34-year-old consumers to the brand”

and, in 2022 after a year of being on the market, Mike’s Hard Seltzer was “the number-eight hard

seltzer brand out of over 300 with just one SKU” (Bria). Although not the only brand with

lemonade flavors (other brands such as Truly, Bud Light, and Topo Chico all released lemonade

seltzers around the same time), Mike’s Hard Seltzer is able to take advantage of its existing

customer base nostalgic for Mike’s Hard Lemonade and the expertise that Mark Anthony

Brewing has curated through developing and sustaining the success of White Claw (Nelson). By

April of 2021, Mike’s Hard Seltzer was already released into the European market in Belgium,

Harper 34

France, the Netherlands, and Germany after already being tested in the United Kingdom (Arthur

April 2021).

Pure Piraña

Heineken, a popular beer company based in the Netherlands, decided to also join the hard

seltzer category in fall 2020 with the Pure Piraña brand. Instead of entering the fierce

competition of the United States hard seltzer market, Heineken opted to introduce Pure Piraña

first to two of their largest markets: Mexico and New Zealand. The brand decided to focus on

providing refreshing all-natural low-calorie beverages (Whymark 2020). Though this marketing

strategy is not unique to the category, Pure Piraña does provide beverages at 92 calories, 8

calories fewer than the aforementioned category standard.

Following promising sales in Mexico and New Zealand, the company decided in March

2021 to release their flavors into the European market starting with Austria, Ireland, the

Netherlands, Portugal, Spain, and later the United Kingdom (Whymark 2021). Heineken made

this move deciding not to become just another hard seltzer in the United States but instead to

attempt to be at the forefront of hard seltzer market’s introduction to Europe and “be the biggest

player in it” (Carroll). In October of 2021, it even announced that the brand would be expanding

further into the duty-free cruise and ferry market (A. Smith).

However, despite this optimism, Heinekin has been honest about its European

performance. In the United Kingdom in particular, the company admitted in August 2022 that

“while the UK seltzer market continues to show value and penetration growth in its third full

year, the segment is not yet moving the dial from a scale point of view and has a long way to go

to match the success of seltzers in the US” due to the fact that “the US already had a very

developed soft seltzer market, with some great brands and great flavour varieties. So that was a

Harper 35

bridge where you could just add alcohol” (Carroll). Accordingly, Heinekin plans to continue

investing in the Pure Piraña brand, but is also looking at other categories such as ciders and light

beers to meet the demands of young, health-conscious consumers in Europe (Carroll). While

other hard seltzer brands have not been so forthcoming with the European performance so far, it

is likely that others are feeling similar pushback in the market. As a result, Pure Piraña should

still be considered a strong contender for the global hard seltzer market due to its unique strategy

of focusing on conquering the global market rather than focusing first on the United States

market.

Harper 36

Primary Research

The primary research for this thesis comprises of two surveys aimed at addressing two

different topics: the drinking cultures of the United States vs. Europe and general awareness and

enjoyment of hard seltzers. The results of these surveys will be analyzed in the following section

in conjunction with the secondary research from the previous sections of this thesis in order to

draw conclusions about the viability of the hard seltzer category in Europe.

In addition to the surveys, this research also includes a case study focusing on White

Claw’s current activity in Vienna attempting to reach and appeal to university students. It will

include interviews with three different Austrian entities (unimag, OeAD, and the Erasmus Buddy

Network) which will address their ties and involvement with White Claw.

Methodology

The first survey, titled “Hard Seltzers in the United States Survey”, aimed to create a

baseline for the drinking culture and the awareness and appeal of hard seltzers in the United

States. Since hard seltzers have successfully fit into the drinking culture in the United States, the

similarities and differences between the drinking cultures in this baseline and Europe may help

determine the potential for the hard seltzer category in the latter. 77 United States natives who

drink alcohol participated in this survey, with 44 identifying as women, 32 identifying as men,

and 1 identifying as non-binary. Regarding age, 48 participants were 18 to 21 years old, 14 were

22 to 25 years old, 1 was 26 t0 29 years old, and 11 were 30 years old or older. A more in-depth

breakdown of these demographics is available in Figure A.

The second survey, titled “Hard Seltzers in Europe Survey”, is meant to bring clarity into

both the drinking culture of Europe and the current awareness and appeal of the hard seltzer

category. This survey consisted of 36 European participants, with 20 identifying as women and

Harper 37

16 identifying as men. By age, this survey includes 17 people who were 18 to 21 years old, 17

who were 22 to 25 years old, 1 individual who was 26 to 29 years old, and 1 who was 30+. In

this survey, I also asked the Europeans to disclose from which country they originate. Overall, 16

countries of origin were included, with the most popular countries of origin being Austria,

France, and Germany, each with 5-6 participants. The other countries represented include the

Czech Republic, England, Finland, Italy, the Netherlands, Norway, Poland, Portugal, Scotland,

Spain, Sweden, and Switzerland. More in-depth breakdowns of these demographics are available

in Figures B and C.

Both surveys are composed of two different parts: a quantitative section and an optional

qualitative section. In the quantitative section, participants were asked a series of questions to

gauge their alcohol habits and preferences, particularly in relation to hard seltzers. In the

following section, I will indicate a “U” if the question was just asked in “Hard Seltzers in the

United States Survey” and an “E” if the question was just asked in “Hard Seltzers in Europe

Survey”. Answer options will be in the parentheses. The questions were as following:

●Did you know what a hard seltzer was before taking this survey? (Yes or No)

●Have you drunk a hard seltzer before? (Yes or No)

●U: Have you drunk a hard seltzer in the United States? (Yes or No) E: Have you drunk a

hard seltzer in Europe? (Yes or No)

●U: Which of these brands have you seen being sold at bars, restaurants, and/or stores in

the United States? E: Which of these brands have you seen being sold at bars, restaurants,

and/or stores in Europe? (Select all that apply: White Claw, Truly, Topo Chico, Bud Light

Seltzer, Vizzy, Pure Pirana, Mike’s Hard Seltzer)

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●U: Where have you seen hard seltzers in the United States? E: Where have you seen hard

seltzers in Europe? (Select all that apply: I have never seen a hard seltzer in Europe/do

not know what that is, Bar, Restaurant, Store, Party, University, Give-away, Advertising,

Other)

●On a scale from 1 to 10, how much do you enjoy drinking hard seltzers? (1=least favorite

drink, 10=favorite drink, 0=never have tried one)

●Which of the following hard seltzer brands do you enjoy drinking? (Select all that apply:

White Claw, Truly, Topo Chico, Bud Light Seltzer, Vizzy, Pure Pirana, Mike’s Hard

Seltzer, None of the above, I have haver drank a hard seltzer)

●Why do you drink alcoholic beverages? (Select all that apply: To have fun, To get drunk,

To have a sense of belonging in social settings, To celebrate, To enhance a

feeling/situation, For the taste, To cope with problems/stressors)

●What are your highest priorities when selecting alcoholic beverages? (Select all that

apply: Flavor, High alcohol content (%), Low alcohol content (%), What other people are

drinking, Accessibility, Convenience for holding in social settings, Health, Price)

After collecting data from participants, I then analyzed it in Excel to see what was

relevant to my thesis and what was not. I then took the relevant data and manipulated it in Excel

and PowerBI to produce statistics, charts, and tables to aid in my analysis.

The optional qualitative section of my research was composed of one area with five

different questions that participants had the option of answering if they elected. I chose to make

this part optional for two reasons: one, not everyone has thought about this topic enough or done

enough research to have an educated opinion which is not necessary for the remainder of the

survey, and two, in order to be able to generate the maximum participation rate I wanted to keep

Harper 39

the mandatory survey as brief as possible with a one to two minute completion time. The

qualitative section was as follows:

●If you have time and are willing, please answer any or all of the following questions to

help with the qualitative analysis for my thesis. How would you describe the drinking

culture of the United States (U) / Europe (E)? How do you believe the drinking culture of

the United States is different from the drinking culture of Europe? Do you believe hard

seltzers have a future in Europe? What brand(s) do you think has the most potential in

Europe? Do you have any other thoughts?

I received 11 responses to this section in “Hard Seltzers in the United States Survey” and

five responses to this section in “Hard Seltzers in Europe Survey”. I then looked through these

responses to identify trends and determine general opinion about the drinking cultures in the

United States and Europe, how they compare, and how hard seltzers fit into them. I also used

some direct quotes from this section to support my qualitative analysis.

Limitations

First, one limitation of these survey results is that both surveys are based on voluntary

samples. While a random sample would have provided better statistical representation, I did not

have the resources within this thesis to obtain it. Instead, I had to find participants from my

greater personal network that were willing to take the survey. As a result, the demographics of

the participants are slightly skewed toward my personal demographic, 21-year-old woman,

which is another limitation of this thesis. One reason for this in the European data is because I

was denied my request to distribute the survey to all students and faculty at the Vienna

University of Economics and Business (WU) where I was studying abroad since my research

was being conducted through the University of South Carolina, not WU. I had to instead mainly

Harper 40

rely on the relatively younger network I created studying and traveling through Europe as well as

international students at the University of South Carolina. While I tried my best to create

diversity in my participants by finding people who would voluntarily participate from different

age groups and gender identities, there is a slight bias towards women and 18 to 21 year old

participants. Moreover, in both surveys, the vast majority of the data encompasses participants

from the ages of 18 to 25. However, since hard seltzers are typically primarily marketed toward

Gen Zers/Millennials with a slight bias toward women over men, this slight imbalance does not

invalidate the results or the subsequent analysis. Finally, while 16 European countries are

represented in the demographics of participants, this does not indicate a perfect representation of

Europe. The data is also slightly skewed towards Austria, Germany, and France as can be seen in

Figure C.

As a result of these limitations, my analysis of the drinking culture of Americans and

Europeans will not claim to be based on fully representative data of these populations. Instead, it

will be focused on the target demographics of hard seltzers, Millennials and Gen Zers, and

include a generalization of the European market. This bias in age is validated by White Claw’s

decision to specifically target university students in Austria indicating a personal bias towards

the younger age groups (as discussed in the section entitled “Case Study: White Claw in

Vienna”). Lastly, this generalization of the European market is validated by the discussion of the

internationalization of the European alcohol market discussed in the previous section titled

“Alcohol in Europe”.

Quantitative Results

The quantitative results of these surveys can be grouped into two parts: awareness of

hand seltzers and priorities and reasons for drinking alcohol. In some of the following results, the

Harper 41

terms “high”, “medium”, and “low” will be used to refer to concepts like awareness, enjoyment,

and priorities. These terms refer to the proportion of study participants who agreed with that

statement. For all of these questions, “high” refers to 70% of participants or higher, “medium”

refers to 30-69%, “low” refers to 10-29%, and “minimal or none” refers to 0-9%. To clarify, the

individuals themselves did not measure the degree to which they enjoy or prioritize something;

instead, they simply indicated whether or not they enjoyed or prioritized something, and the

results represent an aggregate of each survey group. For example, a high proportion of

enjoyment of White Claw in Europe indicates that a large proportion of Europeans enjoy

drinking White Claw. Lastly, for these types of questions, participants were not limited in the

number of options they could select. This means that a participant selecting that they enjoy

White Claw did not prevent them from selecting that they also enjoy Truly. A breakdown of

these questions can be reviewed in the “Methodology” section above.

In terms of awareness, Americans clearly (and unsurprisingly) are much more familiar

with hard seltzers than Europeans. Before taking this survey, as can be seen in Figures D and E,

only 69% of Europeans knew what a hard seltzer was compared to 100% of Americans and 75%

of Europeans had tried one compared to 97% of Americans (it is assumed that some Europeans

initially did not know that what they were drinking was a hard seltzer to account for these

conflicting numbers).

In the following section, I will use the word “awareness” to refer to whether the subject

can remember seeing a particular brand of hard seltzer on their continent of origin or any brand

in a particular type of location. This is not intended to accurately measure precise frequency but

instead be an estimation of the scope of the current presence of hard seltzers in each market.

Looking at the hard seltzer brands highlighted in this thesis, a high percentage of Americans

Harper 42

have awareness of White Claw, Truly, Bud Light Seltzer, and Mike’s Hard Seltzer on their

continent, a medium percentage of Americans have awareness of Topo Chico and Vizzy, and no

Americans are aware of Pure Piraña. On the other hand, a medium proportion of Europeans have

awareness of White Claw on their continent, a low proportion of Europeans have awareness of

Bud Light Seltzer, and a minimal proportion of or no Europeans are aware of Truly, Mike’s Hard

Seltzer, Topo Chico, Vizzy, and Pure Piraña (See Figure F). When asked where on their continent

individuals have seen hard seltzers, a high proportion of Americans had awareness of hard

seltzers at stores, parties, bars, and in advertising, a medium proportion had awareness at

university and restaurants, and a low proportion had awareness at give-aways. Europeans had a

medium percentage of awareness of hard seltzers at stores, a low percentage of awareness at

parties, advertising, university, and give-aways, and a minimal or non-existent percentage of

awareness at bars and restaurants (See Figure G).

Figure F

N (Europe) = 36, N (US) = 77

Harper 43

Figure G

N (Europe) = 36, N (US) = 77

Regarding enjoyment of specific brands, which does not have to be limited to continent

as was awareness, a medium proportion of Americans enjoy White Claw, Truly, and Mike’s Hard

Seltzer, a low proportion enjoy Bud Light Seltzer, Topo Chico, and Vizzy, and none enjoy Pure

Piraña. Europeans have a medium percentage of enjoyment of White Claw, a low percentage of

enjoyment of Truly and Bud Light Seltzer, and minimal or no percentage of enjoyment of Mike’s

Hard Seltzer, Topo Chico, Vizzy, and Pure Piraña (See Figure H). It is important to note that

some of the lack of enjoyment of each brand can be derived from lack of awareness of that brand

or hard seltzers in general. This aligns well with the parallels in the differences between brands

in Figures F and H.

Harper 44

Figure H

N (Europe) = 36, N (US) = 77

The final two questions of the quantitative section asked subjects their reasons for

drinking alcohol and priorities when selecting alcoholic beverages. Focusing on why individuals

drink alcohol, for Americans having fun is of importance to a high percentage of participants,

celebrating, getting drunk, enhancing a feeling or situation, and the taste are important to a

medium percentage, and having a sense of belonging in social settings and coping with problems

or stressors are important to a low percentage (Figure I). For Europeans, having fun and

celebrating is important to a high percentage of participants, getting drunk, enhancing a feeling

or situation, and the taste are of importance to a medium percentage, having a sense of belonging

in social settings is important to a low percentage, and coping with problems or stressors is

important to a minimal percentage. Looking at priorities for the American group, flavor is a

priority for a high proportion of subjects, price and high alcohol content are priorities for a

medium proportion, convenience for holding in social settings and health are important for a low

proportion, and what other people are drinking and low alcohol content are priorities for a

minimal proportion. For Europeans, flavor is prioritized by a high percentage of participants,

Harper 45

price is prioritized by a medium percentage, high alcohol content, accessibility, convenience for

holding in social settings, health, and what other people are drinking are prioritized by a low

percentage, and low alcohol content is not a priority for any participants when selecting an

alcoholic beverage (See Figure J).

Figure I

N (Europe) = 36, N (US) = 77

Harper 46

Figure J

N (Europe) = 36, N (US) = 77

Qualitative Results

Throughout the qualitative results of these surveys, a clear divide in drinking culture

between the United States and Europe became apparent. In general, both Americans and

Europeans seem to believe that “in Europe, they take time to enjoy alcohol through the course of

a meal or night and work up a light buzz” while in America “people aim to get drunk as quickly

as possible”. Some say this is because “Europeans have taste. They enjoy drinking rather than to

just get drunk”. Others point out that the drinking culture is more centered around partying in the

United States and can come with a lot of peer pressure while in Europe they “drink responsibly

and have less peer pressure when it comes to drinking”. Both Europeans and Americans seem to

believe that they are the ones who drink more excessively–but for different reasons. Europeans

point out that “most people (above the age of 15) drink on a frequent basis” and that “people can

handle alcohol better because they are more used to it. It is part of Austrian culture to drink a

Harper 47

beer at lunch.” As one American pointed out, “from what I’ve experienced studying abroad in

Europe, people drink intermittently over a longer period of time from afternoon to night.” On the

other hand, Americans believe that their drinking culture focused on partying causes people “to

get drunk as quickly as possible and end up binge drinking within two hours time.” The previous

section entitled “Alcohol in Europe” describes how Europeans do, in fact, drink more than

Americans, on average. The significant insight from this section, however, is not how much

Europeans and Americans drink, but how and with what aim; though the quantitative section of

this analysis indicates that getting drunk is of medium importance to both Americans and

Europeans, response bias might be in play. It is possible that some Americans tried to present

themselves in a better light when taking this survey. Still, even with this bias, Americans still

edge out Europeans with 52% of Americans and 47% of Europeans citing this as a reason they

drink alcohol. Therefore, the conclusion from this section is that Europeans drink more

frequently but without the intention of getting drunk while Americans drink more intermittently

but with more focus on getting drunk and partying. On a more somber note, one American also

pointed out that “it is too easy to fall into the trap of using it as a coping mechanism”.

Regarding the potential for hard seltzers in Europe, one man from Switzerland had a very

strong opinion claiming that “hard seltzer and all that kind of tasteless stuff has no belonging in

that culture rich continent”. It is important to note that this participant had never tried a hard

seltzer himself. Another European, a woman from Austria, also noted the lack of flavor in hard

seltzer, but instead said “hard seltzers might be interesting for those who would like to drink

something alcoholic without any strong taste. Just like Spritzer (white wine with sparkling water)

is very popular in Austria - especially on warm summer days.” Americans, who, on average,

Harper 48

have more familiarity with hard seltzers, seem to believe that “seltzer will make its way to

Europe”.

Both Europeans and Americans disagree on which brands have the potential to be

successful in Europe. Many believe that “White Claw would have a future in Europe since its

already extremely popular in the states”. Moreover, the woman from Austria believes that there

is potential because “it is advertised a lot and even distributed in public places to make

consumers aware.” One American pointed out that this is the case also because it is a “less sweet

tasting brand”. While one American believes that Bud Light Seltzers do not have a potential

“because Bud Light as a brand is very “American” based on the stereotypes of the people who

drink their beer”, another American provided a more logistical argument that “those sponsored

by the big brand beer co ( Budweiser, Corona, etc) as they can give up shelf space to introduce”

will be more successful.

Others think that the brands highlighted in this thesis are not necessarily the path forward

for the hard seltzer market. One man from Finland specifically highlighted Laitila, a brand that

“has managed to beat White Claw by a lot in popularity in Finland because of the taste

difference”. He believes that “local brands will do well in Europe as they know the consumers'

taste preferences” as “the drinking culture in Europe varies from country to country.” An

American, on the other hand, believes that these differences do not mean that the big companies

will fail; their success just “relies heavily on how they market” to different countries and

cultures. Finally, another American believes that perhaps already popular “seltzer water brands

like Pellegrino and Perrier” would be successful “if they released a spiked line”. Clearly, there is

no clear consensus on the future of hard seltzers in Europe; if there was, there would be no need

for this thesis. Yet, this section does seem to indicate that while hard seltzers can have a future in

Harper 49

Europe, their success will depend on how well they adapt and market their products to the

European market. Moreover, it may depend even more on how they adapt to the markets of

specific countries, and they may be met by local challengers such as Laitila when doing so.

Case Study: White Claw in Vienna

During my time studying abroad in Vienna, Austria from February through May 2022, I

observed an interesting phenomenon; while I did not often see hard seltzers available on the

menus of many bars or restaurants, I was encountering them in settings associated with my

university, the Vienna University of Economics and Business (WU). I eventually narrowed down

these instances to three different sources: unimag, an Austrian university magazine, OeAD, an

organization that provides housing to students across Austria, and the Erasmus Buddy Network,

an organization that supports exchange students during their semester abroad at WU. Each of

these entities was giving away White Claws for free alongside their services during my semester

abroad, and I reached out to representatives from each of these entities to uncover the reason

why.

Unimag is a free growing student lifestyle magazine distributed throughout the country of

Austria at universities. It provides students with insights and tips on entering their careers, advice

on what, where, and how to study in Austria, profiles on different residencies in different parts of

Austria, and articles about student life, festivals, music, sports, technology, fashion, and books.

This magazine is distributed physically at universities and also for free on their website,

unimag.at. Alongside their newspapers, they also sometimes give away White Claws for free to

students (see Figure K). According to Philpp Ossberger, a manager of unimag with whom I

corresponded, the magazine had a paid cooperation with White Claw’s Austrian distribution

Harper 50

company. They distributed the beverages to ten different universities in the cities of Vienna,

Graz, Linz, and Salzburg on behalf of the organization.

OeAD “is a non-profit student residence provider for international and national students,

and offers accommodations for around 12,000 students annually throughout Austria” (“About

us”). In Vienna alone, students have 25 different apartment buildings from which to choose.

When entering their office in Vienna during my semester abroad, there were often White Claws

available on a desk in the waiting area. Marianne from the team at the OeAd office in Vienna

explained that the White Claws were provided by a company called Freudebringer.

Freudebringer is a company that distributes samples of products from other companies “to

specific target groups via network partners such as thermal baths, fitness centers, doctors,

crèches and many other partnerships.” They take care of all logistics and organization and plan

their distribution based on market research (“Freudebringer”). For unspecified reasons, Marianne

said that this partnership did not continue into spring 2023.

The Erasmus Buddy Network (EBN) is an organization that connects exchange students

at WU with each other and students of the university through fun trips and activities run by

members of the student union at WU. Programs include a buddy program to help exchange

students with their initial arrival in Vienna, trips to cities in Austria and surrounding countries

such as Salzburg, Hallstatt, Prague, Budapest, and Cracow, and activities such as a welcome

dinner, night sledding, wine hikes, dance classes, brewery tours, bowling, ice skating, and a

weekly meet-up at a bar. At some of these events, the leaders would provide students with White

Claws. For example, at 10 a.m. on the bus ride to Salzburg, the leaders distributed cases of White

Claws to the students (see Figure L). According to Elias Germann, the head of EBN during my

semester abroad, White Claw is a sponsor of the student union and provides the beverages to

Harper 51

EBN for free who then decides to distribute them at their events for free most of the time. This

partnership was in effect from the summer of 2021 until the summer of 2022. While White Claw

did not express a reason for ending it, Germann predicts that it was because White Claw was

using this relationship as a tool to enter the market and no longer needs it now that it has

established itself.

Clearly, White Claw has seen the potential for the young adult market in Vienna and

Austria as a whole and has attempted to capitalize on it through accessing university students.

The question is, are these young adults receptive? Germann was able to give some insights into

this topic during our conversation. He says that while students initially did not know what hard

seltzers were, now most are happy to receive them for free. Moreover, students who do not like

beer, particularly women, are excited that they are now available in addition or instead of beer,

the beverage traditionally provided at EBN events. This is supported by the data from the

quantitative research of this thesis, which shows that White Claw is by far the most brand

recognition in Europe and is the current hard seltzer of choice for Europeans (see Figures F and

H).

Moreover, during our conversation, Germann predicted based on what he has seen at

EBN events that the hard seltzer category will become a popular new category for alcoholic

beverages in Europe but will not push other beverages out of the market.

Harper 52

Analysis

While all four dimensions of the CAGE framework are important when deciding to enter

a foreign market, culture is the most important dimension in the hard seltzer case. The brands of

hard seltzers this thesis focuses on are part of established alcohol companies; in general,

established alcohol companies have already expanded brands in other categories abroad, so they

would already have the framework to address much of the concerns regarding administrative,

geographic, and economic distance. As a result, this analysis will comprise of two parts: “Hard

Seltzer Viability” and “Brand Viability”. The first section will analyze the differences in drinking

culture between the United States and Europe based on the research outlined in the previous

section. It will then address how hard seltzers fit into each culture and the overall viability of the

category in Europe. The second section will then take a closer look at each of the seven key

brands of this thesis, White Claw, Truly, Bud Light Seltzer, Vizzy, Topo Chico, Mike’s Hard

Seltzer, and Pure Piraña, and their individual potential in the European market. This section will

address how each brand fits into the cultural analysis as well as any relevant elements of

administrative, geographic, and economic distance as applicable.

Hard Seltzer Viability

Hard seltzers were not just a beverage that entered the United States but, rather, a

phenomenon - but will the White Claw Summer reach Europe? In short, no. Nevertheless, this

does not mean that hard seltzers will not find success across the pond. This section will

distinguish the key differences between the drinking cultures of the United States and Europe

and how hard seltzers fit into them.

Based on my data, the reasons that are important to the greatest percentage of both

Americans and Europeans when drinking alcohol are to have fun and to celebrate. However,

Harper 53

celebrating is much more important to Europeans (78%) than Americans (62%). Moreover, while

getting drunk appears to be important to only marginally more Americans than Europeans (52%

vs. 47%), the qualitative section of this thesis seems to indicate that this may be a result of

response bias, and getting drunk may be important to more Americans than they revealed in this

survey. Furthermore, enhancing a feeling or situation, having a sense of belonging in social

settings, and coping with problems and stressors appear to be important to significantly more

Americans than Europeans. On the other hand, a greater percentage of Europeans drink to enjoy

the taste of their beverage (53% vs. 35%).

This data, along with the insights from the qualitative section, indicates that Americans

put more emphasis on drinking alcohol for a situation than do Europeans. Specifically,

Americans drink to party and to enjoy situations. Europeans also drink for situations such as

celebrations, but they are much more focused on taste. This aligns with the insight that

Europeans tend to drink more excessively than Americans, but that this drinking occurs over

large stretches of time in more casual settings. It matters more to them what they are drinking as

the focus for them is not to get drunk in order to enjoy a setting but instead to enjoy a beverage

over time. Moreover, when looking at priorities when selecting alcoholic beverages, flavor is

highly important and the most significant priority for both Americans and Europeans. Yet, it is a

priority for nearly all Europeans (94%) compared to 84% of Americans. Not only is there a gap

here, but the qualitative section makes it clear that consumers have different preferences for

flavor. It appears that many Europeans are not as interested in sweet flavors but do still enjoy

seltzer water; in addition, in some markets such as Austria and Italy, spritzers, which have

similar sweet and bubbly flavor profiles, are already popular. Furthermore, high alcohol content

is a priority for significantly more Americans (49%) than Europeans (28%). This supports the

Harper 54

argument that perhaps getting drunk is far more important to Americans than Europeans, and

they value efficiency to reach the point of getting drunk much more than Europeans.

Overall, this analysis thus far of drinking cultures lends itself to the conclusion that hard

seltzers fit into European drinking culture just not in the same way as in American drinking

culture. Hard seltzers are an efficient and convenient way to drink in social settings; while this is

of some importance to Europeans, particularly in celebrations, it is much less important. This

still means that some Europeans will choose to pick up convenient hard seltzers at parties and

celebrations while having fun, but this will not cause the same cultural wave that hard seltzers

caused in the United States.

Additionally, part of the appeal of hard seltzers to Americans is the aesthetic as a

“lifestyle brand”; they are likely to bring them to parties but also activities such as boating and

hiking in order to achieve a certain aesthetic marketed to them. As discussed in the “Alcohol in

Europe” section, Europeans do not respond as much to invasive marketing and are less likely to

align themselves to an alcohol brand for the sake of achieving a certain “lifestyle”. To

Europeans, it is much more important to enjoy the flavor of a beverage and to want to enjoy it

over a longer period of time. For those who enjoy sparkling water and sweet flavors, then, hard

seltzers would be a great addition to their alcohol preference portfolio. The “Alcohol in Europe”

section also indicates that Europeans currently are demanding more variety in flavor of

high-quality alcoholic beverages, so these individuals would gladly accept this change. For those

who do not particularly enjoy these flavors, however, they are not likely to choose hard seltzers

just because they see others drinking them. This is further confirmed by the fact that only 17% of

Europeans admitted that having a sense of belonging in social settings is a reason for them to

drink and what other people are drinking only mattered to 8% of Europeans.

Harper 55

Through the “White Claw in Vienna” case study, there appears to be evidence of this

dynamic playing out in practice. When presented with hard seltzers, many Europeans were not

opposed to them. As seen in the quantitative section, the only ones who strongly oppose them are

those who do not enjoy these specific flavors. Moreover, for those who do not enjoy beer, hard

seltzers are a welcome surprise at events that used to only feature beer. Still, despite having been

in Austria since June 2021, hard seltzers have not become a phenomenon in Vienna, the capital

city. This confirms that Europeans are open to them and some will begin to drink them once

familiar with them, but there is nothing about them that stands out. This may also be explained

by the deeply-rooted nature of alcohol in Europe discussed in “Alcohol in Europe”. Unlike in the

United States, a relatively young culture, alcohol is ingrained in many parts of European cultures

and celebrations. Though Europeans claim to want to expand their palates and have been doing

so slowly over the last century, there is still a tendency to return back to traditional preferences in

each region. It will take time for hard seltzers to root themselves within drinking culture despite

their acceptance into it.

Next, in order to be successful, hard seltzer brands will have to be aware of the

differences between drinking cultures in different countries and regions. One strategy for alcohol

companies would be to individualize the brand and flavors offered to each region. To cover all of

Europe in this way, however, would require extensive resources and may not be worth this

investment since hard seltzers are not likely to be the phenomenon they are in the United States.

Moreover, local brands like Laitila in Finland are likely to be able to accomplish this goal of

appealing to local consumers with greater ease anyway. A less intensive and safer bet would be

to focus on the Northern and Eastern countries such as Germany, Austria, and Switzerland that

currently already have a preference for beer and other grain-based beverages (for which hard

Harper 56

seltzers are an alternative). While companies should still work with locals on the ground who can

help them adapt to the market, it is not likely that they will need as many or as varied alterations

to their current flavor profiles. In addition, it is less likely they will need to market as hard to get

consumers to try their beverage as they would for a country that prefers wine. If a company sees

great success in regions that enjoy beer, then it may be time to consider expanding into a greater

variety of countries. One potential expansion past this region that may be viable would be Italy

where spritzers are a popular beverage of choice.

Finally, from an administrative standpoint, given the stricter marketing laws in Europe, it

is unlikely that hard seltzer companies will be able to market themselves as a “healthy”

alternative to other alcoholic beverages - especially when this stance is already being challenged

in the United States. However, while in “The ‘Healthy’ Alternative” it seemed as if this was

important to Millennial and Gen Z consumers, the quantitative data seems to indicate that health

is not as important to consumers as is often assumed. Millennials and Gen Z may care about their

health more and may be drinking less than previous generations, but only 14% of Europeans and

13% of Americans listed it as a priority when selecting an alcoholic beverage. This indicates that

having to shift marketing techniques should not be a devastating blow to hard seltzers’ potential

in the European market. Moreover, the calorie and carb counts themselves will indicate to those

consumers in Europe who do care about the health in their beverage whether hard seltzers are a

healthier option for them compared to their alternatives.

Brand Viability

While hard seltzers may have a place in the European alcohol market, not all brands have

the same potential for success; this section will evaluate the viability of the seven key brands:

White Claw, Truly, Bud Light Seltzer, Vizzy, Topo Chico, Mike’s Hard Seltzer, and Pure Piraña.

Harper 57

It is important to note, that, beyond these brands, there is a lot of potential for specialty

regionalized hard seltzers in Europe. However, regionalized brands are less likely to take over

the continent without the resources and agility of large alcohol companies. As a result, while it is

important to keep them in mind and research whether they are emerging when deciding whether

to enter a potential market in Europe, they will not be considered heavily in this analysis.

After careful consideration, the two hard seltzers with the most potential for success in

Europe are White Claw and Topo Chico. After these brands, Bud Light Seltzer, Pure Piraña, and

Mike’s Hard Seltzer can expect moderate success. If Truly decided to enter the global market, it

may also be able to acquire moderate success. Finally, Vizzy should not expect to be able to find

success in Europe.

White Claw has already seen more success in the European market than any hard seltzer

brand, and this success should very well continue. White Claw is positioned well in the European

market for a few key reasons: first, while Europeans may not align themselves to “lifestyle

brands” of alcohol in the same way that Americans do, they still listen. As mentioned in its brand

profile, White Claw is synonymous with hard seltzer in popular culture in the United States, and

in a globalized economy this inevitably reached the European continent. This is confirmed by the

fact that despite many of the key brands in this thesis having made their way to Europe in the last

few years, 50% of Europeans had heard of White Claw and 50% said they enjoyed it as well. On

the other hand, the next greatest percentage of awareness on the continent was Bud Light Seltzer

at 14% and enjoyment was Truly at 25% (enjoyment was not limited to the continent; it is likely

that some Europeans had had the beverage in the United States). In the end, all hard seltzers are

still just flavored sparkling water; branding and early-mover advantage are a key reason for this

wide distinction from other brands. Furthermore, as discussed in the “Hard Seltzer Viability”

Harper 58

section, Europeans prefer both simple branding and simple flavors; part of what gave the White

Claw brand its wave of success was its simple flavors and “gender-neutral minimalist silver cans

with a black-and-white classic wave logo” as mentioned in its profile. The cultural phenomenon

of White Claw was not pushed on Americans but instead manifested in social media as a result

of its appeal; while it is unlikely that Europeans will be shouting “ain’t no laws when you’re

drinking claws” on the beach anytime soon, they have already taken a liking to the beverage and

it seems to fit into the European alcohol market nicely. Evidence of this can be seen in the

“White Claw in Vienna” case and the fact that, as mentioned in its profile, it has captured 42.4%

of the hard seltzer category in the United Kingdom. Furthermore, White Claw has been

incredibly strategic in selecting areas of expansion, focusing on countries that have a preference

for beer such as the United Kingdom, Belgium, Austria, and Germany (which, as mentioned in

the previous section, are more likely to adopt the category).

Topo Chico should also expect to see great success in Europe. Topo Chico has a unique

origin story that distinguishes it from other brands; Europeans are likely to find a connection to

this brand given their deeply-rooted alcohol culture. Moreover, rather than being an American

brand trying to catch up to the success of White Claw, Topo Chico has always been a global

brand – it did not even enter the American market until it had found success globally. This

includes having launched in Europe in early 2021 before most American brands, including White

Claw, had made their way to the market. Furthermore, its flavor profile is already adapted to the

European palate rather than that of the United States. The distinction of the brand along with its

early-mover advantage makes it a prime candidate to lead the category in Europe. In addition,

from an administrative and geographic perspective, Coca-Cola’s extensive global logistical

network will allow it to reach audiences more rapidly and with more intensity than other brands.

Harper 59

This claim that Topo Chico will be White Claw’s main competitor in the European

market is supported by the fact from its brand profile that it currently owns the second most

market share after White Claw in Great Britain. Interestingly, however, my data does not support

this claim. Topo Chico had 0% awareness on the continent and 3% enjoyment by Europeans.

Personally, however, I did see Topo Chico a lot during my time in Austria. (See Figure N for an

advertisement I saw about once a week). Though Austrians are one of the most featured groups

in this study, there are still only 5 of them; as discussed in the limitations section, this data cannot

be perceived as being fully representative of the European population. Furthermore, as hard

seltzers are still emerging in Europe, many participants are likely not looking for them (unlike

me who was looking for indications of the category’s presence). This, combined with the fact

that alcohol companies cannot and do not conduct as invasive marketing in Europe as in the

United States, may be causing individuals to miss brands that are not the notorious White Claw.

As a result, without my own research supporting the statement, I can only cautiously proclaim

Topo Chico to have some of the most potential in the European market. More extensive research

is necessary to confirm this.

Next, Bud Light Seltzer, Mike’s Hard Seltzer, and Pure Piraña can all expect moderate

success in the category. While these brands are not incongruent with the European market, there

is also nothing that makes them stand out to European consumers. Bud Light Seltzer has

experienced moderate success in the United States, being cited as the number three brand after

White Claw and Truly, and has also captured third place in Great Britain thus far. However, there

is no indication that it will amount to anything special in the European market. As one

respondent noted in the qualitative section of my research, Bud Light is an American brand

associated with American stereotypes of beer consumption which stand in contrast to European

Harper 60

beer consumption and tradition; as a result, much like how Bud Light has not won over the

European consumer, Bud Light Seltzer, whose only distinguishing factor is its tie to the Bud

Light brand, is unlikely to do so. This level of moderate success is supported by my data which

shows a 14% level of awareness of the brand on the continent and 11% level of enjoyment by

Europeans.

Much like Bud Light Seltzer, Mike’s Hard Seltzer earns its competitive advantage

through its nostalgic association with another very American brand, Mike’s Hard Lemonade.

While this does not preclude the brand from success in Europe, it does not indicate that Mike’s

Hard Seltzer will reach the levels of success of White Claw and Topo Chico. The main driving

force for its success will be its association with Mark Anthony Brewing, the company behind the

phenomenally successful White Claw brand. By sharing White Claw shelf space and market

information with the Mike’s Hard Seltzer brand, the latter is likely to find moderate success.

Pure Piraña is a brand that had the potential for success in Europe but may have already

entered the market too late. Pure Piraña took a global strategy for entering the hard seltzer

category, much like Topo Chico, and is backed by a global alcohol company, Heineken. This

seems to indicate that it should be a major player in the category. However, it entered the global

market long after White Claw and both the global and European markets after Topo Chico. In

fact, by the time it entered the European market, the global and the European markets were

already saturated with many hard seltzer brands. Without a solid background of success and

without early-mover advantage, the brand would have to rely on another distinguishing factor to

become a key player. Their main distinguishing claim is to be a refreshing low-calorie beverage

with 92 calories instead of the category average of 100. Since health has been established as

being important to a low proportion of American and European consumers when choosing

Harper 61

alcoholic beverages, this distinction (along with the brand’s association with Heineken) is

enough to provide Pure Piraña with moderate but not leading success in Europe. This is backed

by the fact that the brand reports having found growth and success in the United Kingdom

market but that these results have been disappointing in the face of their goal to lead the

category.

Truly has not yet decided to enter the European market; if it were to do so, however, it

should also expect moderate success. Truly would be able to benefit from the carry-over name

recognition and success from being a leader in the American market that White Claw

experienced. Moreover, even though Truly is not easily available in Europe, 25% of Europeans

still reported to enjoy the beverage. Yet, this success would not mirror the success that White

Claw found in Europe. This is because Truly’s key distinguishing characteristic is its variety.

Europeans are far less keen on having a large variety of flavors than Americans and more

focused on having a few simple high-quality flavors. In addition, without the invasive marketing

of America, Truly cannot promote this variety and continuous innovation quite as easily. As a

result, this high performer in the United States should only expect to have moderate success in

Europe.

Vizzy is the only player that definitely lacks a future in Europe. It gains its competitive

advantage from marketing itself as a healthy hard seltzer with its addition of antioxidant vitamin

C. While this claim obviously appealed to some and allowed it to experience notable growth, it

has not yet allowed it to become a challenger for a top spot in the hard seltzer category. This can

partially be explained by the fact that, as discussed in the “Hard Seltzer Viability” section, both

Americans and Europeans do not actually value health as much as expected when selecting an

alcoholic beverage. This is partially intuitive, as it is impossible for alcohol itself to ever be

Harper 62

considered healthy. Furthermore, Vizzy is already under public scrutiny for its health claims and

the FDA is being called upon to investigate it. It is unlikely then, in a culture that values health

even more than in the United States and has much more stringent marketing laws, that Vizzy

would be able to use being the “healthiest” hard seltzer as a competitive advantage in the

European market. Without any other key distinguishing factors from other brands or marketable

success in the United States, it is extremely unlikely that Vizzy would find success in Europe.

Harper 63

Canned Cocktails: The European Alternative?

When observing the shelves of popular grocery stores Spar and Billa in Vienna, I noticed

that while hard seltzers had not yet consistently found their place next to beer in the alcohol

section, another emerging beyond beer beverage had: canned cocktails (see Figure M).

Canned cocktails, also known as read-to-drink (RTD) cocktails, mimic a wide variety of

popular cocktails such as daiquiris, mojitos, manhattans, negronis, and martinis using sodas or

fruit juices as bases. These beverages attempt, with mixed success, to offer customers the taste of

popular cocktails in a convenient, portable, and affordable can. Emerging in 2019, right after the

peak of White Claw’s popularity, canned cocktails still maintain a relatively small market share,

but Grandview Research predicts that they should expect “a compound annual growth rate of

13.4 percent between 2022 and 2030” (Lashbrook). In Vienna, consumers now have options for

RTD beverages such as a Bacardi rum and cola, Beefeater gin and tonic, and Stiegel grapefruit

radler (deriving from a popular Austrian cocktail that combines beer and lemonade).

While a deeper analysis of this emerging competitor is beyond the scope of this thesis, as

companies attempt to promote their hard seltzer brands in Europe, further analysis of canned

cocktails is recommended to understand their threat to hard seltzers. Furthermore, for companies

with the resources to do so, it is recommended to analyze the viability of their own

diversification into the canned cocktail category in Europe.

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Conclusion

The White Claw wave is crashing on the shores of the European continent, but it will not

be the tidal wave that it was in the United States. Hard seltzers have become a key alcohol

category in the United States by becoming a convenient and tasty alternative to beer; and,

although its explosive growth has slowed down, it is not expected to stop. Instead, hard seltzer

brands are expanding across the globe including to the continent of Europe. The question is, how

much opportunity is there for the category in Europe? Both Europeans and Americans drink to

have fun and to celebrate; however, American drinking culture puts far more emphasis on getting

drunk to party and enjoy a situation. Americans will try to choose a drink that they can enjoy in a

social setting with a relatively high alcohol content. Moreover, they are also susceptible to

invasive marketing, including that which tells them that drinking hard seltzers like White Claw

will allow them to enjoy a “lifestyle” or that a brand like Vizzy will provide them with “health

benefits”. Hard seltzers fit perfectly into this culture; Americans finally have a convenient,

efficient, and tasty alternative to beer to enjoy during parties and celebrations and to use to get

drunk. They also get to experience being a part of the hard seltzer lifestyle.

On the other hand, Europeans drink more excessively but over much longer periods of

time. Resultantly, their focus is on selecting flavors that they can enjoy during these drinking

periods. There is also not as much pressure to drink particular beverages or to drink at all.

Additionally, alcohol is more deeply rooted in European culture than that of the United States,

and this culture varies throughout different regions on the continent. For example, the more

Northern and Eastern regions have a greater preference for beer; still, Europeans are demanding

more variety in high-quality alcohol options. Finally, Europeans are not as responsive to invasive

marketing techniques, and there is much more regulation on them. As a result of these

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similarities and differences, much like in the “White Claw in Europe” case, Europeans who

enjoy the flavor of hard seltzers will pick them up when available as a convenient alternative to

beers and during celebrations. On the other hand, hard seltzers will not become the phenomenon

that they were in the United States, and it will take time for them to take root in the alcohol

market due to the highly traditional nature of alcohol culture in Europe. Moreover, hard seltzer

brands will not be able to market themselves as “healthy” in Europe under stricter marketing

laws, but this should not be an obstacle as health is not as important to alcohol consumers when

selecting an alcoholic beverage as is generally believed.

Out of the key brands, White Claw and Topo Chico should expect to be the leaders in the

European market due to their unique characteristics and early-mover advantage. From there, Bud

Light Seltzer, Mike’s Hard Seltzer, Pure Piraña, and, if it should choose to enter the European

market, Truly, should expect moderate success in the European market. Without a compatible

competitive advantage, Vizzy should expect no potential for success in Europe. In addition,

localized brands that can appeal to the specific tastes of European regions and countries should

be considered as a threat within individual regions and properly researched. On the other hand,

these localized brands are not likely to have the success across the continent that these larger

brands (as members of large companies with extensive networks) can expect. Lastly, the

emerging category of ready-to-drink canned cocktails should also be seen as a threat to hard

seltzers in Europe and should be further researched. On the other hand, they could also be a key

alternative opportunity for alcohol brands looking to expand in Europe.

Overall, this thesis was limited by two key components: survey limitations and the

constantly evolving nature of the ready-to-drink market at the moment. First, my surveys were

voluntary and limited to my personal network and to my ability to distribute. As a result, I was

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not able to have as representative and large of a participant pool as I would have wanted nor

could my line of questioning be as intensive as I would have liked. Instead, I had to try my best

to capture as much data as I could within my resources. Given the opportunity, I would want to

further my research with a more comprehensive participant pool and a longer and more precise

line of questioning. Second, the global ready-to-drink market has evolved very quickly while I

have been writing my thesis. When I released my survey to Europeans in Spring of 2022, I did

not know all of the questions I would want to ask now in Spring 2023. Furthermore, when I

selected my thesis topic in Spring of 2021, many hard seltzers had not hit the global market and

ready-to-drink canned cocktails had not reached a point of significant popularity. Still, this thesis

captures the current hard seltzer market and its future prospects as well as it can given these

limitations. As the European alcohol market continues to evolve, further research should be done

looking at the progress of the hard seltzer category, the key brands of this thesis (particularly

White Claw and Topo Chico), and the emerging competition from ready-to-drink canned

cocktails. Likely, researchers will continue to see steady progress of the category in spite of

competition from canned cocktails, but, while this progress will be led by Topo Chico and White

Claw, they will not witness a “White Claw Summer” in Europe.

Hard Seltzers in Europe_ A Sparkling Opportunity_ An Analysis.pdf

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