Nearly three dozen beer brands defied overall industry trends in 2023 and turned in impressive—even dramatic—volume gains, even as the overall industry suffered through yet another year of declining sales and heightened competition. Indeed, Impact’s new “Hot Brands” for beer and flavored malt beverages (FMBs) are commendable for shining a spotlight on a category during a year that was fraught with consumer backlash against some major labels and media coverage that persistently detailed the industry’s challenges.
Hot Brand honors are awarded to established brands with double-digit growth in 2021, 2022, and 2023; established brands with at least 15% growth last year; brands among the top ten in their respective categories with at least 5% growth in 2023 and at least 15% growth since 2020; and significant new products.
A total of 31 beer and FMB brands achieved Hot Brand status in 2023, an interesting mix that includes a domestic legacy brew, Mexican imports, established and new FMBs, a few craft labels, and even a couple non-alcoholic beers. The group comprises 17 beer brands (nine domestic and eight imported) and 14 FMBs. The list includes 17 brands that are new to the list and 14 returnees. Ten labels dropped off the Hot Brand beer and FMB list from 2022, most of which were from the flavored malt beverage category.
Imported beers accounted for more than twice the combined volume of domestic beer and FMB Hot Brands, owing to the return once again of Modelo Especial, the third- largest beer in the country, to the list. Including Modelo, Constellation Brands landed eight labels on the list. Anheuser-Busch InBev, meanwhile, boasted four Hot Brands, despite repercussions from consumer pushback to Bud Light and other brands during the year. Molson Coors Beverage and New Belgium Brewing both fielded three Hot Brands in 2023. Three returning Hot Brand labels—Twisted Tea, Clubtails, and Yuengling Flight— even registered accelerated growth rates in 2023 versus 2022.
Constellation’s Dominance
With just one exception, all of the imported beer Hot Brands hailed from Mexico, and those brews are all marketed by Constellation Brands. The group of eight beers combined for an impressive 15% increase in volume last year. At nearly 200 million (2.25-gallon) cases, Modelo Especial is notably larger than any other Hot Brand. According to Impact Databank, the Mexican brew jumped 9.2% last year to 196.2 million cases from 179.7 million in the year prior. Volume increased at a similar rate in 2022 for the label, the longest-reigning beer Hot Brand. The third-largest volume beer in the U.S., Modelo Especial rose to be the No. 1 brand in dollar sales and as the top dollar share gainer in 2023, according to Constellation Brands, citing Circana data.
Two Modelo line extensions joined the parent brand as Hot Brand honorees. Modelo Chelada returned with a 32% increase to 22.1 million cases from 16.7 million in 2022. Introduced ten years ago, Modelo Chelada has been able to capitalize on the popularity of Micheladas among Hispanic and, recently, general market consumers. Greg Gallagher, senior vice president of brand marketing, points to the continuous launch of new flavors, as well as strong reception in both convenience and grocery stores, for driving much of the label’s growth. As a result, “we’re continuing to strengthen the media investment behind Modelo Chelada to further drive awareness and reach new consumers across both Hispanic and general markets,” Gallagher says, including both English and Spanish language media.
Modelo Oro, meanwhile, a low-calorie, low-carb brew introduced in 2022, rolled out nationally last year and joined the Hot Brands list for the first time with volume of 3.5 million cases. “People are increasingly reaching for high-end, premium light beer offerings,” Gallagher said last year. “After a successful regional launch, we’re confident that offering Modelo Oro across the country as the new gold standard for light beer will help us build authentic connections with new drinkers.”
Two Corona line extensions, meanwhile, also made their premiere among Hot Brands. Corona Familiar, a full-flavor brew, enjoyed an 18% gain in volume to 11.9 million cases last year, from 10.1 million in 2022. And the new Corona Non-Alcoholic joined the list at 723,000 cases in 2023. “We’re incredibly excited by the initial consumer response to Corona Non-Alcoholic,” John Linn, director of brand marketing for the label, said late last year. “Corona Extra is one of the most beloved beers, so to give consumers an option that provides a similar taste experience without the alcohol allows them to choose how to unwind on their own terms, on any occasion.”
Constellation Brands’ Pacifico and Victoria both repeated as Hot Brands in 2023. Pacifico surged 17% to 20.7 million cases from 17.7 million in the previous year, while Victoria posted the second-best percentage growth—up 37%—of any import on the list, as volume jumped to 6 million cases from 4.4 million in 2022.
Heineken Silver was the lone import not marketed by Constellation Brands to achieve Hot Brand status last year. Similar to Modelo Oro, the new product is low in calories and carbs, and targeted to consumers of brands like Michelob Ultra. The Dutch brew reached volume of 2.9 million cases in 2023, according to Impact Databank.
FMBs By The Dozen
The more than a dozen FMB Hot Brands combined for a jaw-dropping 45% gain in volume last year. The group was led by No. 2 FMB and long-time Hot Brand Twisted Tea from Boston Beer Co. Twisted Tea remaind strong as volume soared an accelerated 29% last year to 42.5 million cases, from 33.1 million in the year prior. Erica Taylor, senior director for the brand, says last year’s performance can be attributed to increased distribution across trade channels, including on-premise; continuing investment in Twisted Tea’s “Tea Drop” ad campaign; expanded targeting of underdeveloped consumer groups and markets; and innovation with line extensions such as Twisted Tea Light and Twisted Tea Extreme.
The success of Twisted Tea has spawned a number of new hard teas, including Lipton Hard Iced Tea, produced and marketed by Fifco USA via a licensing agreement with PepsiCo. Introduced last year, the brand quickly reached 580,000 cases. “We attribute the success to the recognition and credibility that the Lipton name brings and the incredible taste that this product delivers,” says brand director Lisa Texido. Hoop Tea, acquired by A-B InBev in 2021, is another new Hot Brand, with volume of 215,000 cases last year.
Cocktail-inspired FMBs continue to perform well, led by Mark Anthony Brewing’s Cayman Jack—up 32% to 9.6 million cases—and its array of offerings that include Margarita, Mojito, Moscow Mule, and Paloma expressions. Similarly, Geloso Beverage’s Clubtails returned to the list as volume increased 17% to 5.5 million cases in 2023.
Like Lipton Hard Iced Tea, Simply Spiked is an FMB that leverages the power of a popular non-alcoholic drink. Launched by Molson Coors via a partnership with Coca Cola in 2022, Simply Spiked jumped 140% last year to 9 million cases. Brand awareness has been a big contributor to its success, a Molson Coors spokesman said. “It’s Coca-Cola’s No.-2 brand and found in one of every two households,” the spokesperson added, while already being used for mixology by LDA consumers. Topo Chico Aguas Frescas, meanwhile, another Molson Coors FMB that trades on a Coca-Cola brand, was named a Hot Brand in its inaugural year, with volume of 210,000 cases.
Monster, the energy drink brand, expanded into FMBs last year with The Beast Unleashed, which quickly reached volume of 1.9 million cases. According to Chris Russell, chief commercial officer at Monster Brewing Co., “The Beast resonated in a big way with consumers because its flavors replicate the OG Monster lineup. We were able to tap into the existing Monster fanbase that are of legal drinking age.” As of this summer, the company was working to have the brand distributed in 49 states.
Happy Dad is another FMB quickly expanding into new markets. The lone hard seltzer of the FMB Hot Brands, Happy Dad launched in 2021 and last year reached nearly 2.5 million cases. Sam Shahidi, CEO and co-founder of Happy Dad LLC, says that the brand’s low sugar, as compared to other hard seltzers, and reduced carbonation have attracted consumers to Happy Dad.
Among other FMBs on the list are two ranch waters—Lone River Ranch Rita from Diageo Beer Co. and Modelo Ranch Water from Constellation Brands. Rounding out the group were Diageo’s Smirnoff Ice Neon, Sazerac Co.’s Fireball FMB, and A-B InBev’s Cantaritos hard soda.
Domestic Stars
While several domestic beers emerged as Hot Brands in 2023, due to the sluggishness of the category, they were largely small-volume brands. Coors Banquet was the one exception. The legacy brew, while previously named an Impact “Hot Prospect,” achieved Hot Brand status for the first time last year as volume surged 17% to 23.6 million cases. Molson Coors credits the brand’s recent growth to its “pop culture” status, particularly among 21-34-year-old consumers, its retro stubby bottle, and expansion on draft in on- premise accounts.
Two light beers from D.G. Yuengling & Son are included on the Hot Brands list, with strong double- and triple-digit growth. Yuengling Flight sales accelerated to nearly 4 million cases, an increase of 114%, as it repeated as a Hot Brand. It was joined by first-timer Yuengling Light lager, which saw a 56% surge in volume to 3.5 million cases. “We had an incredible performance year for both of our light beers,” says chief administrative officer Wendy Yuengling. Flight benefitted from new customer trial and strong display activity at retail, she notes, while Yuengling Light lager is being increasingly featured with flagship Yuengling lager in stores, as well as in media ads. The brews also likely profited from backlash against Bud Light and Yuengling’s entry into three new states in 2023.
Among craft brewers, New Belgium was the big standout with three Hot Brands—Voodoo Ranger Imperial IPA, Voodoo Ranger Juice Force, and Voodoo Ranger Fruit Force. “The craft space is constantly evolving as drinkers’ tastes change, and Voodoo Ranger has been successful at listening to what our fans want from the brand,” remarks Dave Knospe, senior director of brands and innovation at the brewery. “We’re constantly evaluating the category and identifying opportunities to take smart risks and push the bounds of craft to reach new audiences.” Two craft brews marketed by A-B InBev—Kona Big Wave Golden ale and Goose Island Beer Hug—were named to the list for the first time.
Finally, Athletic non-alcoholic brew returned as a Hot Brand as volume soared 47% to 3.4 million cases. While the NAB segment has gotten increasingly crowded in recent years, Bill Shufelt, co-founder and CEO of Athletic Brewing, says his brands are driving 32% of the category’s growth. “Athletic is truly invested in the non-alcoholic beer category because that’s all we make,” he adds.