By teaming together, both companies expect to benefit by leveraging their shared distribution network, initially planning to launch products that bring Beam Suntory’s Sauza tequila brand further into ready-to-drink (RTD) beverages and Boston Beer’s Truly Hard Seltzer into bottled spirits.
Dave Burwick, CEO of The Boston Beer Company, noted that consumers are looking for new options as the industry rapidly evolves.
Indeed, valued at $714.8 million in 2020 by Grand View Research, the global RTD cocktails market is expected to grow at a compound annual growth rate of 12% from 2021 to 2028, reaching $1.78 billion, spurred by rising health concerns, product premiumization and a desire for convenience.
“Beam Suntory shares our pioneering, entrepreneurial spirit and the obsession with delivering high-quality products,” Burwick said. “This unique, win-win collaboration opens a new frontier for our industry-leading Truly Hard Seltzer brand as we expand into bottled spirits and also allows us to bring a great tequila brand into our best-in-class wholesaler network."
The first new products will be available across consumer retail channels in the United States by mid-2022, with further expansion planned in the future.
In addition to Truly Hard Selzer, Boston Beer includes such brands as Samuel Adams and Dogfish Head, Twisted Tea Hard Iced Tea, and Angry Orchard Hard Cider in its portfolio, while Beam Suntory also includes Jim Beam, Maker's Mark, Knob Creek and Canadian Club, among others.