Despite a double-digit rate of decline from its pandemic peak, the flavored malt beverage (FMB) category continues to boast sizeable growth for several brands, as well as some new entries and subsegments that are generating consumer interest. While competition for FMBs has ratcheted up in recent years, particularly from spirits-based ready-to-drink (RTD) products, there remains a place for the drinks on store shelves and increasingly in bars and restaurants.
FMB volume in 2024 declined for the third consecutive year, according to Impact Databank, to 279.5 million (2.25-gallon) cases, a 3.5% drop from 289.5 million cases in 2023. Category sales last year were well off their 2021 peak of 321 million cases, as a handful of surging brands wasn’t enough to compensate for plummeting hard seltzer volume. As with other beer categories, FMB sales are driven by leading brands, and as in past years, combined sales of the top brands in 2024 outperformed that of all other brands. Still, decliners easily out-led advancers, with only 11 out of 25 leading FMB brands showing growth last year, according to Impact Databank.
White Claw Improvement
The FMB category is comprised of several sub-segments, including hard seltzers, hard teas, and hard lemonades. It also includes legacy products like Smirnoff Ice and Seagram Escapes, as well as a continuingly growing roster of disruptor brands, such as Mark Anthony Group’s Cayman Jack, Geloso Beverage Group’s Clubtails, and Happy Dad hard seltzer. Despite its falling popularity, hard seltzers remain the largest subsegment, led by No.-1 FMB, Mark Anthony’s White Claw hard seltzer. Indeed, White Claw’s performance improved last year as compared to 2023, with volume down just 0.5% to 81.2 million cases from 81.6 million. In 2023, volume declined 4%. “Last year was a great year for White Claw,” says Mark Anthony Group president David Barnett. “We gained seven share points and finished with a 64% share of hard seltzer.” This year, he continues, the brand is already approaching a 70% share. Barnett attributes the brand’s stabilization to product innovation and new flavors, such as peach and blackberry.
Sales declines for rival Truly also slowed. Still, the Boston Beer-owned brand slumped 16% last year to 30 million cases from 35.5 million. “We were not happy with the volume performance of Truly last year,” CFO Diego Reynoso told beverage analysts earlier this year, adding that in 2025, “we think we have the plans to turn that around.” The No.-2 hard seltzer and No.-3 FMB overall, Truly’s annual volume is now less than half that of its peak in 2021.
Among other hard seltzers, Happy Dad was one of the best performers among FMBs in 2024, as volume jumped 44% to 3.5 million cases from 2.4 million in 2023. Sam Shahidi, CEO of Happy Dad LLC, cites expanded distribution and penetration for the brand’s growth, along with its popular social media presence. “Chains are adding more SKUs,” he notes, while the brand—packaged in traditional 12-ounce beer cans rather than slim cans—continues to over-index with male consumers. Shahidi expects continued growth for Happy Dad in 2025.
Tea Time
Boston Beer Co.-owned Twisted Tea—the No.-2 FMB in the country—turned in a solid performance last year, with volume jumping 11% to 47 million cases, according to Impact Databank, from 42.5 million in the year prior. “Twisted Tea continues to gain share of FMBs,” Boston Beer CEO Michael Spillane told analysts earlier this year, noting the brand reached 84% share of the hard tea subsegment. Still, due to its large base, Spillane added that the company expects sales of the brand to “decelerate” to a single-digit rate of growth.
The hard tea subsegment has seen the emergence of many new brands in recent years. Lipton Hard Iced Tea, for example, is licensed and produced by Fifco USA, and last year, its second year on the market, sales increased 18% to 565,000 cases. The brand’s growth was “fueled by significant geographic expansion” into a total of 40 states, says Lisa Texido, brand director at Fifco. She adds that among the reasons hard iced teas are resonating with consumers are their non-carbonation and nostalgic influences. “Iced tea is a classic, and now it’s available with a hard twist,” Texido says. Monster Beverage Corp.’s Nasty Beast hard iced tea, meanwhile, was introduced last year, and according to Renold Aparicio, senior vice president of marketing and commercial strategy, it ranked as the top new hard tea brand in 2024.
Hard lemonade leader Mike’s from Mark Anthony Group also recently expanded into hard teas with Mike’s Harder Tea. Sales of Mike’s Harder lemonade, the fifth-largest FMB, were flat in 2024 at 14.5 million cases. Barnett notes that in 2025, Mike’s is evolving with a refreshed package design, updated logo, and new partnerships that will be unveiled soon. Original Mike’s Hard slumped 19% last year to 7 million cases.
Legacy And Disruptor Brands
Smirnoff FMBs include Smirnoff Ice, XBT, Spiked sparkling seltzer, and Sourced and Raw tea. In 2024, sales of Smirnoff FMBs declined 2% to 23.5 million cases from 24 million. Joyce He, vice president of beer and FMBs at Diageo North America, notes that Smirnoff FMBs picked up share in 2024. “With increasing competition and shifting consumer preferences, we’re thrilled to be able to evolve to meet our audience’s desires and deliver consistent results,” she says. Smirnoff Ice Shorties—sold in 200-ml. packages—were recently launched, along with Smirnoff Ice Smash Tea.
Like Smirnoff Ice, Seagram’s Escapes is a legacy FMB that has been facing stiffer competition from newer entries in recent year. Volume slipped 12% in 2024, and Jaime Polisoto, brand director at Fifco, concedes that Seagram’s Escapes has had “a rough time post Covid.” In an effort to reverse the trend, the brand launched new packaging, reduced sugar in select flavors, and slim cans earlier this year.
Mark Anthony’s Cayman Jack and Geloso Beverage Group’s Clubtails continue to grow at double-digit rates and gain market share. According to Impact Databank, Cayman Jack surged 17% last year to 11.2 million cases. “Cayman Jack is a classic discovery brand with an incredible growth story,” says Barnett, adding that the brand is helping to protect the FMB segment from further decline. “I believe we’re just scratching the surface of the growth opportunity for this brand, and we’re excited about the significant runway ahead of us, with so many chances to continue to shape the future of the category,” he adds. Clubtails, meanwhile, increased 14% to 6.2 million cases. “After over a decade of double-digit growth, Clubtails has developed an incredible following of loyal consumers,” Geloso senior vice president of sales and marketing Paul René says. “Our distribution rate will increase more in 2025 than in any other single year.”
Turning Up The Volume
While overall FMB sales are languishing, one trend that continues to gain traction within the category is high abv offerings. Within the White Claw family, for instance, White Claw Surge jumped 27% last year. Barnett calls it a “standout success over the past year,” and says the company will be “doubling down” on it in 2025. Boston Beer’s Spillane, meanwhile, calls Truly Unruly “the No. 1 growth driver in high-abv [FMBs],” and tells analysts that it’s outperforming expectations. Twisted Tea Extreme is in test, and “tracking well,” he adds. Among other high-abv FMBs, Molson Coors Beverage Co.’s Simply Spiked recently launched Simply Spiked Bold, Cayman Jacked is targeted to small-format retailers, and Monster will introduce Blind Lemon later this year. “High abv products have grown tremendously over the past couple of years,” remarks Aparicio, adding that “there’s a lot of crossover between fans of Monster, consumers of FMBs, and folks who regularly drink higher abv beverages.”
Additional opportunity for FMBs lies in expanded distribution in on-premise accounts. “They play an important role in all consumer occasions and on-premise channels where speed to service is important,” says Barnett. On-premise placement also helps build brand visibility, he adds, noting that Mark Anthony brands “will continue to focus on strategic placements, trial-driving activations, and menu integrations.” At Moe’s & Joe’s tavern in Atlanta, White Claw ($6 a can), Truly ($6), and Twisted Tea ($7) “sell fairly well but tend to be seasonal,” co-owner Scott Drake says. Servers particularly like FMBs because “they’re self-contained and easy to get in front of the customer,” he notes. Moreover, FMBs provide another beverage option for guests. “They’re an alternative to beer and an option for non-beer drinkers,” Drake adds.
As for off-premise sales, Chase Dipple, buying manager at Hi-Lo Liquor Markets, which has three locations in southern California, agrees that weather and environment can be factors. At stores close to the beach, “we’ve been consistently selling hard seltzers for years,” he says.
Retailers and marketers anticipate that FMBs will continue to play an important role in beverage alcohol category sales this year. “I expect they’ll hold strong this summer,” Drake notes. “They’re great for a quick, easy transaction. My staff loves them when it’s a busy weekend.” Mark Anthony’s Barnett is particularly bullish. “I have a ton of confidence that the FMB category will remain a strong and dynamic segment in 2025,” he says, “driven by continued consumer demand for flavor variety, sessionability, and premium-quality options at an accessible price point.”