News

COMMENT: SABMiller - malternative hangover in the New Year

Most popular

The 'metaverse' opportunity for beverage brands

Campari faces familiar troubles - analysis

Sustainability and responsibility activations

Beverage companies set for tough pricing desicions

India - Still spirits promised land? - comment

MORE

SABMiller is recalling much of its distributed 'malternative' stock due to lack of demand.

It's not the way any company wants to start the New Year - by recalling a product that was expected to capitalize on a much hyped growth category.

'Malternatives', which contain both brewed and distilled alcohol, have been very popular with younger drinkers, but it seems that the category is losing its fizz as demand falls. Now producers must focus on carving out a lasting niche or pack up.

SABMiller, the world's second-largest brewer, is recalling thousands of bottles of Stolichnaya Citrona and stablemate Sauza Diablo from US distributors after not living up to demand expectations. The drinks were launched in spring but the focus will now be on areas where demand remains - surplus stock will be destroyed.

Until very recently, malternatives were the hot product for US drinks producers. But now malternatives seem to be disappearing almost as quickly as they arrived. Coors' Vibe, described by Coors as a "wild cousin" to its existing Zima, was just one of dozens of new brands. But Vibe will be withdrawn after a few months' test marketing in eight markets. Recently, Diageo withdrew its Captain Morgan Gold brand at an estimated charge of US$42m.

The vast marketing spend, which the promotion of these new drinks demands, means that such a setback is hard to swallow. All manufacturers must keep their eye on the latest hot trend, but it appears that malternatives are in danger of becoming merely a craze. Producers must now secure stable market share for the few successful brands in areas where demand remains, and look for the next new trend.

Related research: Datamonitor, "Going Out" (DMCM0082)


Companies: SABMiller, Diageo

Related Content

What's coming up in wine in 2021? - Predictions for the Year Ahead - comment

What's coming up in wine in 2021? - Predictions for the Year Ahead - comment...

Why new standards herald a new dawn for Japanese whisky - comment

Why new standards herald a new dawn for Japanese whisky - comment...

Are full-sugar soft drinks the new niche? - Comment

Are full-sugar soft drinks the new niche? - Comment...

How the spirits category can make the most of less sugar - Comment

How the spirits category can make the most of less sugar - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?