The Oklahoman

Rural sales, new seltzer brands drive beer sales

7% increase in Oklahoma is thanks to eightfold increase in number of hard seltzer options available, Beer Alliance says

- Dale Denwalt The Oklahoman USA TODAY NETWORK

“In 2019, there were only five seltzer brands available ... and sales were about 5,000 cases.”

Lisette Barnes

President, Oklahoma Beer Alliance

In case you missed it, hard seltzer is looking more and more like the new king of beer.

The biggest shift in customer behavior, according to analysis of sales trends, is the switch to hard seltzer, an often fruity drink that’s part sparkling water and part alcohol.

“In 2019, there were only five seltzer brands available in Oklahoma and sales were about 5,000 cases,” said Lisette Barnes, president of the Oklahoma Beer Alliance.

Now, she said, OBA member distributo­rs are stocking over 40 seltzer brands, with upwards of 81,000 cases sold.

Saturday Night Live even poked fun at the rising popularity of these fizzy drinks with a recent skit lampooning major brands’ rush to put their own seltzer on the market. In the sketch, a writer reaches for a “J.C. Penney” brand hard seltzer, and another writer walks in with a case of “Jiffy Lube” hard seltzer..

Byron’s Liquor Warehouse manager Blake Cody said the seltzer craze blew up after Truly and White Claw entered the market.

“The demand just was skyrocketi­ng to the point where distributo­rs couldn’t even get enough of that product into the state to keep shelves flush,” Cody said. “What we’ve seen the last couple of years now is that all of these other brands have caught on to the fact that that’s become kind of like a new category, a new niche.”

There’s even a Sonic-branded hard seltzer, patterned after the drive-in restaurant’s fountain drink flavors. COOP Ale Works, which

produces the Sonic seltzers, also has its own label, Will & Wiley.

There’s also a seasonal component, with seltzers being viewed as a lighter option during hot months compared to heavier beers. Local resident Jason Hines said he switches during the summer to hard seltzers almost exclusivel­y.

“It’s a low-calorie, very refreshing option for the summer months,” Hines said. “Fall through spring, I still drink beer that fits the season.”

Hard seltzers aren’t the only beer types with a rising reputation. Lowcalorie or light beer sales have grown 41%, and craft beer has become more popular with a 7% growth compared to 2019. Cody said the rising popularity of these beers has come at the expense of imported brews.

“People aren’t gravitatin­g to the imported European stuff as much, like your Heinekens (a Dutch beer),” he said. “Those have definitely dropped off.”

Overall, beer sales by volume grew by 6.8%, according to OBA, the state’s largest beer distributi­on advocacy group.

Another significant driver of growth, especially for on-premise retailers like bars and restaurant­s, was location. Those sales in rural Oklahoma grew 13% when comparing the second quarters of 2019 and 2021.

“In the second quarter of 2021, the rural onpremise market was well ahead of the metro markets and was the driver of our overall growth,” said Jason Hall, senior general manager of distributo­r AB One Oklahoma. “We saw this trend begin in late 2020 and early 2021 as a result of continuing COVID-19 restrictio­ns in certain areas and other locales shifting restrictio­ns.”

As the coronaviru­s pandemic spread across the United States, Oklahoma’s largest cities were more likely to temporaril­y close bars and some restaurant­s than rural municipali­ties.

Data from the Oklahoma Beer Alliance shows this effect, with on-premise sales in metro-area bars and restaurant­s falling by 3.5% in the pandemic’s first months. Comparativ­ely, purchases of take-home alcohol from liquor and convenienc­e stores grew by 4% in Oklahoma City and 8% in Tulsa during the same period.

Some of the growth can be attributed to city residents flocking to the country for recreation amid the lockdown and social distancing, said Barnes, president of the OBA.

“I don’t attribute that to only being the rural population having consumed more, but having more of our metropolit­an folks trying to get out to the rural areas,” she said.

Increased beer sales is reflected in the state’s tax revenue. During the 20182019 fiscal year, the Oklahoma Tax Commission collected about $64.5 million from all alcohol sales. Compared to the most recent year for which data is available, revenue grew by more than $9 million.

“I attribute these shifts in Oklahomans’ beer purchasing habits in two ways —

the first is embracing a more active lifestyle and the second is portabilit­y,” said Hall. “All of the brands that we’re seeing an increase of sales in, check all of these boxes.”

Staff writer Dale Denwalt covers Oklahoma’s economy and business news for The Oklahoman. Have a story idea for Dale? He can be reached at ddenwalt@oklahoman.com or on Twitter at @denwalt. Support Dale’s work and that of other Oklahoman journalist­s by purchasing a digital subscripti­on today at subscribe.oklahoman.com.

 ?? DOUG HOKE/THE OKLAHOMAN ?? The Anheuser-Busch Sales of Oklahoma warehouse contains about 400,000 cans of beer and seltzer recently, which is about a 10-day supply.
DOUG HOKE/THE OKLAHOMAN The Anheuser-Busch Sales of Oklahoma warehouse contains about 400,000 cans of beer and seltzer recently, which is about a 10-day supply.
 ?? DOUG HOKE/THE OKLAHOMAN ?? Anheuser - Busch Sales Of Oklahoma warehouse with about 400,000 cans of beer and seltzer, about a 10 day supply. Oct. 7.
DOUG HOKE/THE OKLAHOMAN Anheuser - Busch Sales Of Oklahoma warehouse with about 400,000 cans of beer and seltzer, about a 10 day supply. Oct. 7.

Newspapers in English

Newspapers from United States