Spindrift Discontinues Spiked Offering Amid Decline in Hard Seltzers
Spindrift, the popular flavored sparkling water brand, has announced that it will be discontinuing production of its alcoholic offering, Spindrift Spiked, after four years. The company made this decision in order to focus on innovating its core sparkling water platform. According to the company, the production of Spiked required substantial resources and time, taking attention away from other parts of its business. The move comes as demand for hard seltzers, including Spiked, has declined, with consumers gravitating towards other drink options such as no-ABV beverages and mocktails.
This decision to transition away from alcohol comes seven months after a majority stake in Spindrift was sold to a private equity firm and former Boston Beer head Dave Burwick was appointed CEO. Spindrift, known for its low-sugar flavored sparkling waters made with clean-label ingredients, entered the hard seltzer category in 2021 with Spiked, which was positioned as a healthier alternative to traditional hard seltzers.
However, the landscape of the hard seltzer market has changed significantly since then. Hard seltzers have lost much of their initial appeal as consumers look for new options and reduce their alcohol consumption. The market has also become more competitive with the entry of new players like Coca-Cola and Molson Coors.
Spindrift invested significant time and resources into entering the alcohol sector, which required new manufacturing processes and regulatory compliance. With the growth potential of the alcoholic offering diminishing, the company decided to refocus its efforts on its core sparkling water business where it has established a strong presence.
Dave Burwick, the CEO of Spindrift, stated, “This is a difficult decision, but the right one to better serve the needs of our customers, supporting the tremendous momentum of the current business and strong consumer trends towards non-alcoholic beverages.” Despite discontinuing Spiked, Spindrift remains committed to innovating its sparkling water line with new flavors like Tropical Lemonade and Yuzu Mandarin. The company is also exploring new non-alcoholic categories such as mocktails and sodas.
In conclusion, the decision to discontinue Spindrift Spiked reflects the changing dynamics of the beverage market and Spindrift’s strategic shift towards focusing on its core product offerings. As consumer preferences evolve, companies like Spindrift are adapting to meet the growing demand for healthier and more diverse beverage options.
