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Leanna Garfield / Business Insider
- According to an badysis by UBS, hard beer salt could reach 2.5 billion dollars.
- Beverage sales rose 164.3% in the last four weeks, according to Nielsen data.
- UBS's Sean King explained to Markets Insider the top five beer markets best exposed to gain on the hype.
- Learn more about Markets Insider.
Hard Seltzer is storming the United States.
Canned carbonated beverage sales of brands such as Whiteclaw, Truly and Bon & Viv have exploded in the past year.
The category, worth $ 550 million today, could reach $ 2.5 billion by 2021, said Sean King, an badyst at UBS. This implies an annual growth rate of 66% and a jump in consumption of 14 million cases in 2018 to 72 million cases in 2021.
"The numbers, in my opinion, surprise everyone in the market," King said in an interview with Markets Insider. The strong growth of the category has shown investors that it is sustainable and not a flash, he added.
Sel Sel has converted beer, wine and vodka drinkers. According to Nielsen data, hard drive sales have increased 164.3% over the last four weeks and about 200% over the last year.
Whiteclaw is leading the category with a 50% market share and Seltzer peak sales have increased 223% in the last four weeks. Whiteclaw is owned by Mark Anthony, a private company also responsible for Mike's Hard Lemonade.
Even though the seltzer market leader is a private company, King's badysis shows that hard seltzer represents a great opportunity for large beer and beverage companies that are launching their own brands to be competitive. They could see an opportunity of $ 200 million for each 10% share of the category that they are able to capture.
Here are the top companies exposed to the trend of casting hard selections, according to King.
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