Seltzers - Here to last, or just the next 20-year repeating “fruity-flavored-cyclic” fad? And will (craft) brewers learn a lesson from them this time around?

Gary Spedding - for BDAS, LLC

Are beer styles taking second place for pure sugar consumption rather than grain brewers these days, or are seltzers just that causes the pain and bloating typically another fad? Several marketing magazine- associated with wheat and grain (gluten articles and on-line beverage dialogue diets) needs to be better understood. Those sites have covered the topic and this very moving to seltzers thinking they are safe from question within the last year or so (see indigestion concerns compared to drinking references). I also know our lab has been beer may need to think again. So, then we inundated with product examples lately, move to the impact of new flavors or the lack either those already on the market or headed of beer flavor profiles as to a reason for the that way following final testing and label growing choice of the young consumer of approval. They are certainly keeping us busy these new refreshing carbonated beverages during this otherwise quiet time for alcohol - another repeating generational trend as we beverage testing laboratories. We have, will see. in fact, researched and implemented the best methods to derive the nutritional data One also wonders if the almighty oppressive now being requested of all current seltzer regime of “it’s gotta be an even more hoppy producers. IPA or the highway” destroyed beer for the millennial consumer appetite. For a The seltzer movement seems to have started while most brewers made the hoppiest its main phase to launch and acceptance in beers that they could, while pushing the 2019. Text-wise we look to the Oct-Nov 2019 limits on international bitterness units. issue of BEVERAGE MASTER and to an article Only seasoned drinkers would enjoy the entitled “Hard Seltzer Making a BIG Splash”. hoppiest/bitter, and quite heavily alcohol- Hard seltzers are ready-to-drink (RTD) laden/high caloric IPA brews. Likely it was cocktails made quite simply with carbonated not for those consumers approaching craft water, fermented malt or sugar bases (for beers for the first time. Much to the delight the alcohol), and fruit or fruit flavorings. of the majors playing with relatively bland The BEVERAGE MASTER article illustrated tasting lagers. Then came a species of IPA the growing popularity of seltzers during that was cloudy/hazy and that had more the period of June, July, and August of 2019 fruitiness associated with them. Though still via their quote “it was the summer of hard an acquired taste. Interestingly, maybe also seltzers.” a clue missed earlier on by craft brewers as to heading to the production of something Furthermore, that issue of the BEVERAGE fruity and refreshing rather than satiating. MASTER goes more into the history of spiked, Only a handful of more than 100 recognized or hard seltzers and describes the factors beer styles - with a reasonably decent- behind the definite formula for their success. sized audience for them, would likely sit Unlike beer, most of the sugar used in seltzer alongside the IPAs and double IPAs in most formulas is converted to neutral alcohol (no craft establishments. Until recently little was congeners) and therefore also contribute available on the lighter (flavor-wise) styles less calories than similar alcohol-content to introduce the new “craft beer” drinker beer. They are also naturally gluten-free. to. Lighter, though tasty styles appreciated Though recently the issue as to whether it is by the Mexican drinker being a recent

1 exception to the plethora of IPA’s on the regards to the introduction of low-alcohol market and maybe a few fruit flavored beers. alternative-to-beer products. In fact, every This is not to mention that very few craft generation seems to have had its alternative brewers could in fact produce a flavorful, yet beverage introduction for young entry- faultless lighter-style beer. One whose faults level drinkers not yet accustomed to the could not be masked by overly-aggressive taste of beer, wine, or spirits. Pre-1990 it hopping for example! was wine coolers. In the early 1990s and the early 2000s we saw the introduction of So, on to seltzers and a growing spectrum novel coolers and malternative beverages. of fruity flavored products. Whiteclaw is the However, following a short burst of high brand that led the way, then the Boston Beer consumer interest and appeal many largely Company got in on the act, and now as of disappeared or are now only produced December 2019/Early 2020 all the major in smaller quantities and languish on the brewing companies, and also many craft store shelves amid 100’s of other beverage brewers are also producing seltzers. Again, choices. First to hit the shelves, in 1993, was unlike for beer, a blank base of carbonated Zima Clearmalt - a clear, lightly carbonated water allows for much experimentation with alcoholic beverage made via the filtering of fruits, extracts, and other flavorings for these a light lager through charcoal which stripped potentially refreshing beverages. Market away color and taste, with the brewer then research has shown that the consumer adding citrusy flavorings for taste and wants more fruit flavor to show through in palatability. It was marketed as an alternative such products. While I hope we don’t lose to beer and an example of what we now many of our breweries after this current refer to as a (non-wine) cooler (4.7–5.4% virus pandemic, it may in fact be quite an ABV) by the Coors Brewing Company. Zima easy entry back into the market for more debuted in the midst of a “clear craze” of brewers to produce seltzers and then the early 1990s, when products ranging broaden the styles of beer offered going from soft drinks (Crystal Pepsi) to clean forward. At least a tactic that the big players deodorants (Crystal Clean) and other like Anheuser Busch, Miller and Coors etc., cleaning agents, dish-washing liquids etc., are always tackling – more so than ever as sought to take advantage of a vogue for quite they have been losing a little ground to the literal transparency or purity and “natural craft, locavore movement. We might also wholesomeness”. Zima was flavored with see a return to reason and getting away citrus-notes, but it had the sensory impact or from higher than 6-8+% ABV beers. Session impression to many imbibers of a strange drinks need to be less alcohol heavy. Health almost plastic-medicinal twang to it which, consciousness and lower calorie products following an initial tasting experience, led leading the way with the younger crowd – the to its rapid decline in consumer acceptance. next generation consumer for all brewers That and its lack of appeal to the beer and alcohol beverage makers! drinking male. Fun to try but not to buy (again) for many. Now it is of interest to note that there appears to be a 20-25-year cycle at play here with Miller Brewing Company then mastered the

2 technique of creating a clear beer which flavorings and brand logos for the new also failed miserably. The clear brews may product. Despite my beliefs and the comment have been beer-based but they lacked any that AB tried to keep themselves and others hop qualities, disappointing to many true out of messing about with this beverage beer aficionados, there was no foamy head, category, we see their need to draw in new and the taste was soda-like rather than alcohol beverage consumers to keep them malty. However, a side note – the Miller team in the fold of loyal AB drinkers. “The beauty state that they learned an awful lot about of a product like Bacardi Silver,” according to making traditional beer via their clear beer the new products leader then at AB, was “that experiments. Also, as an aside the wine it brings in new drinkers, people who really industry also played with producing clear don’t like the taste of beer.” Finally, for now, I wine at one point. note the appearance of Bacardi Breezer also called a ‘refresher’ on the label - a tropical Smirnoff Ice, self-marketed as “everyone’s lime blend with a bitter lemon drink color favorite malt liquor soda” was created in and taste – again with the citrusy flavors – not 1999. It is a blend of Smirnoff Red vodka much variety in these clearer malt or alcohol with the “classic taste of lemon” and was “fortified” beverages back in those days! likely the basic start to what became known as “malternative” beverages rather than Interesting then that seltzers are similar in coolers. Smirnoff ice was designed to have overall formulation to previous alternative a sweetish yet crisp and citrusy fruity taste beverage styles be it coolers, malternatives to it. Unlike the artificial citrus zing of Zima, and spritzers etc. Though less sugar and a the citrus note in Smirnoff Ice was a little greater variety of fruit flavors is seen today more natural in taste and flavor, but was, including seemingly evermore popular even though loaded with sugar, reminiscent berry flavors. Considered a little healthier of a soft drink known as Bitter Lemon in with lower or no sugar, low caloric content the UK. As for most examples of this style (less than 90-100 Calories/12 fl. oz. serving) of beverage the alcohol was deceptively and 4.5-5.0% ABV. BEVERAGE MASTER masked. Other examples of clear malt concluded their article that there was only beverages include Bacardi Silver (5% ABV) one way for seltzers to go – upwards. Other again “a clear premium malt beverage made articles, noted in my references section with natural citrus flavors and featuring a and readily found on line, also describe crisp, refreshing taste”. It was launched in ca. and argue for both the up- and down-sides 2002 by Anheuser-Busch (AB) – a company potential for seltzers. that it is believed were not interested in getting into the malternative or cooler I, personally, had little rest since December categories at one point, and tried to destroy the 24th up until about mid-January in the market segment for such products working on the methodology for seltzer (personal observations and communications producers. Calls coming in daily as to from within the industry ca. 2002). Bacardi whether we were set up to analyze such Silver was the result of a partnership with beverages. We now note that standard Bacardi-Martini, which supplied the rum methods for beer analysis will not work

3 for the accurate determination of several the brewing industry overall and that seltzers nutritional parameters. Thus, we have now will not soon fade from the market”. We have implemented older, though still officially seen them do this generationally. We’re also relevant and recognized, methods to do our seeing this – as noted above - at our own in-house testing for this specific product laboratory facilities (both in KY and in CO), category. Moreover, the same way the TTB and the fact that, while beer samples are would test such beverages according to not arriving as frequently these days, we protocol and following discussions with are seeing no shortage of work for seltzer their key science teams. Furthermore, producers - including the need for full in conjunction with one of our affiliate nutritional analyses. It seems that the savvy laboratories, we have also established the brewer is preparing to relaunch quickly most relevant and comprehensive packages when the economy begins to pick up again. to cover the full nutritional information seen on the major products now on the market A failure with the previous generation shelf. A crazy expense is to test for non- alternative beverages seems to be detectable vitamins which are noted on associated with the aftertaste - the next product labels as “not a significant source sips turning into something wrong with of”. You may well ask why, when touting a the taste – largely medicinal (see above healthy beverage or food, you would state for Zima) or old cooked or artificial citrus - individually case basis-wise - no health- notes. Current seltzer makers need to promoting ingredients present? It turns out if be careful in formulating their new fruity you test for certain ingredients the labeling beverages. A neutral carbonated water base approval process by regulatory authorities and alcohol, sweeteners or residual sugar can be expedited. The big companies can levels and fruit flavors need to marry well to afford that cost but this puts the burden on yield a more authentic natural taste profile the smaller operation producer to keep pace with appropriate shelf-life stability (flavor with labeling and marketing claims. We built and clarity qualities). Another previous up these test requirements into extended generation product – the wine coolers packages and “come they do” for such work consisted of a mixture of fruit juices and to be done. So, you can select at BDAS, LLC white wines and typically also contained the right package for you – we can advise as 4% to 6% alcohol. Seltzers are thus only to the best approach for each individual case expanding on the seemingly cyclical or product. introduction of alternative fruity-accented, low alcohol beverages. The newcomer to According to the Beer Connoisseur in April seltzer production could benefit from the 2020, seltzers were predicted to surpass expertise of authors such as M. Shachman, $1 billion in annual revenue this year. This, via reading his book: The Soft Drinks of course, was before the virus pandemic, Companion^, and via an understanding of the yet still suggests that there is no end to the nutritional parameters to place on the label. rise of this beverage style in the near-term Such being to attract the health-conscious future. The director of the Bud Light seltzer consumer to a beverage containing a tad program thinks that we are “reestablishing of alcohol and for those not necessarily

4 appreciating or craving a malty or hoppy Funari, C. Is Hard Seltzer A Fad? New Data tasting and gluten containing beer. Though Suggests Otherwise. https://www.forbes. hopefully they will try some of the classic com/sites/chrisfurnari/2019/12/10/is- beer styles in your portfolio and not hard-seltzer-a-fad-new-data-suggests- head off into the world of the blander and otherwise/#7b25cc4f5bb7 lifeless mass-produced lagers which have dominated the world for far too long. Hops & Vine Consultants: Hard Seltzer: TTB and FDA Labeling Considerations. https:// [For those wishing to find out more about hopsandvine.net/hard-seltzer-ttb-and-fda- the regulations which apply to seltzer labeling-considerations/ production, labeling and taxation etc., and to similar beverages, the TTB and FDA websites Knizner, F., Hard Seltzer Regulatory should be consulted with the references Considerations. (2018) https://bevlaw. noted below by Hops & Vine Consultants, com/bevlog/hard-seltzer-regulatory- Knizner and Grace Regulatory Consultants considerations/ providing some neat advice, tips and links. ^A number of other books on Soft Drinks Grace Regulatory Consultants: Kombucha, manufacture are also available and can be Hard Seltzer and Sodas – Oh My! Or…When found via an on-line search of titles.] “Beer” isn’t a “Malt Beverage” http://www. graceregconsult.com/blog/kombucha-hard- seltzer-and-sodas-oh-my-orwhen-beer-isnt- References: a-malt-beverage (2019).

McCreary, N. “Hard Seltzer: Making a BIG BDAS, LLC 04.18.2020 Splash”, BEVERAGE MASTER. Oct-Nov 2019; https://bdastesting.com/ 38-41.

“10 Key Questions About Hard Seltzer,” The Beer Connoisseur (2020). http://beerconnoisseur.com/articles/10-key- questions-about-hard-seltzer

Bernstein, J.M. “Hard Seltzer’s Race to Differentiate: How beer and wine producers are pushing the category in new directions”, SevenFiftyDaily. April 6, 2020 https://daily. sevenfifty.com/hard-seltzers-race-to- differentiate/ (available online).

Shachman, M. The Soft Drinks Companion: A Technical Handbook for the Beverage Industry. CRC Press. (2005).

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