That was the message from Anthony von Mandl, the founder of White Claw parent company Mark Anthony Brands, at the National Beer Wholesalers Association’s Annual Convention.
“The consumers flocking to White Claw today are not going to magically return to the mega beer brands of yesterday, despite whatever last gasps, line extensions or nostalgic marketing they launch,” he said. “With White Claw and our entire brand portfolio, it’s not just about volume, but about profit.”
White Claw is looking to step up production, plans to invest $250 million in new and existing facilities. The $33-a-case hard seltzer is a huge profit generator for wholesalers and retailers, he said, urging it be given more shelf space.
Anheuser-Busch and MillerCoors have lost more than 500 million cases in volume over the last decade, even as they increased profit by $2 million.
“How much did your profits grow with either of these two brewers in the last 10 years?’ he asked.
“Despite 500 million less in sales, they continue to mandate to you significantly disproportionate shelf and display space relative to their sales,” he continued. “Space they do not deserve. Space that is costing you and retailers significant lost profits.”
White Claw has 60% market share and Boston Beer Co.’s Truly Hard Seltzer gas about 75% of the category’s volume.
“I’m convinced that hard seltzer long-term will be no different” than energy drinks or soda,” he said. “There will be two major brands that control 85%, maybe 90%, maybe 95% of the business market.”