The Weekly Sip is Food Dive’s column focused on the latest news in the rapidly changing and growing beverage sector. From inaugural product lines to big investments and controversial topics, this column aims to quench the thirst for developments in the category.
With seltzer stagnating, White Claw smashes into tequila
As summer approaches, the leading player in the hard seltzer space is embracing a new spirit for a cocktail-esque beverage experience.
White Claw announced the launch of Tequila Smash, which contains agave-based alcohol instead of the brand’s traditional malt alcohol base. The drink contains 100 calories and 5% alcohol-by-volume per can. It is available in four flavors: Strawberry Guava, Pineapple Passion Fruit, Mango Tamarind and Lime Prickly Pear.
Phil Rosse, the president of White Claw’s parent company Mark Anthony Brands, said the drink will further its status as an innovator in the beverage industry. He pointed to the success of White Claw Vodka + Soda launched a year ago.
“White Claw pioneered the ready-to-drink category, which continues to be one of the fastest growing beverage categories and ripe for disruption,” Rosse said. “White Claw Tequila Smash is a revolutionary new way to enjoy a Tequila drink with friends.”
The new drinks hit the market as Boston Beer’s Truly, one of White Claw’s main competitors, recently launched a tequila-based seltzer line. The dual launches come as sales in the hard seltzer category have slumped, with experts pointing to an oversaturation of the category since its pandemic boom.
An IWSR analysis of industry trends last November found malt-based hard seltzer peaked in 2021, with consumer fatigue contributing to its decline ever since. At the same time, RTD spirit-based cocktails continued to flourish. Roughly 60% of new product launches in the RTD space in the first half of 2023 were cocktails.
The market for tequila cocktails is projected to be worth $13.2 billion by 2030, increasing at a compound annual growth rate of 5.9%, according to Virtue Market Research.
— Chris Casey
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Courtesy of Táche
Pistachios percolating into coffee
Pistachio brand Táche is giving the latte a jolt with the first offering made with the popular nut.
Each 11-ounce package, which contains Táche pistachio milk and coffee, was inspired by CEO and founder Roxana Saidi’s lifelong passion for both ingredients. Táche spent more than two years developing the Pistachio Milk Latte and created over 30 iterations before finalizing a recipe.
Táche said it enlisted the expertise of specialty coffee roasters and did a comprehensive sensory analysis to achieve the perfect flavor profile, nutritional balance, consistency and mouthfeel.
The New York City-based company decided to move forward after noting that most latte offerings are made with dairy or oat. With no added oils and low sugar, Táche said it is a healthier alternative to oat milk lattes and a more sustainable option when compared to almond milk lattes.
— Christopher Doering
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Courtesy of Happy
Robert Downey Jr. is Happy about RTD coffee
With new canned beverage brands popping up across the beverage space, a Hollywood star and a CPG veteran is among those to get in on the action.
Coffee maker Happy — created by Robert Downey Jr. and Eos lip balm founder Craid Dubitsky — is launching a line of RTD coffee products. The company entered the $28 billion coffee space last month.
The drink is made with 100% arabica beans, real milk and sugar. Happy also has no artificial flavors or sweeteners. It is available in four varieties: Caramel Latte, Mocha Latte, Vanilla Latte and Cold Brew Coffee. The latter item contains notes of cocoa taste, the company said.
Happy pointed to the success of RTD coffee among younger consumers as a reason for its optimism, with 60% of Gen Z and 54% of millennial consumers regularly drinking the offering, according to Mintel data. The U.S. ready-to-drink coffee category is projected to be worth $6.5 billion by 2029, growing at a compound annual growth rate of 5.9%, according to a report from Research and Markets this month.
Happy will compete for shelf space with similar offerings already on the market. Chamberlain Coffee, founded by teen influencer Emma Chamberlain, has found success with RTD lattes. And yogurt giant Chobani purchased La Colombe for $900 million last year.
— Chris Casey