The alcoholic beverage landscape is evolving rapidly, and one important recent beneficiary has been the Ready-To-Drink space. While overall wine and beer sales have remained relatively stagnant, the RTD space is experiencing explosive growth. According to ISWR, the RTD market grew by 43% over the last year and is expected to continue to expand at a compound annual growth rate of 22%. This growth, in large part, is the result of the hard seltzer boom we’ve been experiencing over the last several years and has been compounded by the rise in DTC sales during the recent pandemic. However, the hard seltzer space is becoming increasingly crowded and consolidation among a small number of key players is beginning to limit the opportunity for new entrants in the space. That being said, Beverage Dynamics points out that the recent seltzer boom has opened up a gateway into the wider category of premium, clean-tasting, canned products. One significant beneficiary of this trend has been canned wine.
A recent article published by Wine Spectator, points out that in just the last eight years, canned wine has ballooned from a niche $2 million market into a fast-growing $182 million industry in 2020. According to Nielson data, revenue growth in the space is beginning to reach an inflection point, jumping 68% in just the last 52 weeks. Millennial and Gen-Z drinkers are now growing to accept and even prefer the canned wine packaging as a result of its convenient serving size, portability, approachability, and sustainability. Canned wine is now taking share from both traditional bottled wine and beer and is well positioned for rapid and sustainable growth. In a recent article published by Wine Industry Advisor, Rich Bouver of Free Flow Wines, predicts that canned wine will likely grow to account for 10% of the overall wine market by 2025, which would equate to roughly $34 billion according to Statista.
One company at the forefront of the meteoric rise of canned wine is Bev. Their female centric marketing and low carb/zero sugar recipe are resonating incredibly strongly with the contemporary wine consumer. Their impressive product market fit has led to a national distribution deal and 200% month over month sales growth (even during the pandemic). The company is extremely well positioned to ride the rising tide in the canned wine space, and The Seed Project is very excited to announce our investment in their most recent fundraising round. We look forward to following the continued success of Bev and the stellar team behind the product.
Visit the Bev Website: https://drinkbev.com/