The Devil's Advocate: 0% White Claw

You may think I’m the type of guy who would poke fun of the concept of “Non-Alcoholic Hard Seltzer”, like 0% ABV White Claw which was recently announced, and you might be right. I’m not going to do that today though because I enjoy a challenge and know that a lot of smart people came to this decision. So instead I’m going to take the side of the argument that nobody wants to touch right now and defend the move. The biggest challenge to playing Devil’s Advocate with White Claw’s move into the NA space is not the strategy itself, but it’s price parity with the alcoholic version 🌊

1. Mixed Sobriety is Inelastic 💸

As I approached the age of 40, my body began demanding that I trim a lot of beers out of my weekly routine. Can anyone else relate? Pale Ales have always been my fridge staple, but these days it’s a 50/50 split with aggressively hopped Sparkling Hop Waters with a comparable hop forward flavor. Sure it’s not the same, but boy does it make it easier to resist the temptation of a beer some evenings.

In my personal and anecdotal experience, people looking to get healthier and cut down on a vice are less sensitive to price when searching for a solution. While Hard Seltzer’s explosive growth may have slowed, White Claw is still a massive brand with a loyal following and dominates its category. Fans looking to make life changes, even if its just a reduction, now have an on-brand way to help get the job done. Sometimes it’s as much a fizzy beverage that’s being craved, as much as the buzz from alcohol.

2. Brand Building 🏙️

White Claw is very much a social brand and with shifting drinking habits, the 0% versions offers guests at a gathering a more premium and connected means to abstain. While the target audience may be GenZ, Millennials also face so many borderline drinking occasions, like at a kids birthday party on a Saturday afternoon which can dominate weekends for young parents. The presence of a non-alcoholic version next to the hard seltzer signals acceptance and demonstrates support for the decision or lifestyle, putting both on equal footing with the same brand, which could lead to greater loyalty. Are customers essentially paying extra for the logo on the can? Absolutely, but let’s not pretend like we don’t do the same thing daily with other products.

3. The Liquid Death Case Study 💀

Liquid Death has built a platform that makes sobriety cool, in part by putting skulls and a dark sense of humor behind their powerful water brand. The attractive cans look sharp in your hand at a social event, especially a concert, making a proud statement. A 0% White Claw has the opportunity to do something similar for those cutting back on alcohol, not their social life, while building a stronger connection between consumers. Tapping into the Liquid Death magic won’t be cheap, but “water” sponsorships will have the potential to be bolted on to existing sponsorships in the alcohol category where they’re already “the official Hard Seltzer (or Flavored Malt Beverage) of a major event, team, etc.

4. No Laws with 0% Claws 🏛️

When the goal is brand building, sampling, and getting deep with your customer, boy does it help when you can give away product. Alcohol laws put a lot of restrictions and red tape around a brand’s ability to use their beverage to support these efforts. A zero alcohol version however gets to play by a different set of rules and can be activated more so at will, without the product passing through the normal channels with accompanying paperwork, licensing, and permits. While this is the 0% version we’re talking about, it still gets brand White Claw out there to more places that the Hard version couldn’t realistically get to.

Distribution Power 💪

In many cases, beer wholesalers don’t wield a lot of power outside of the beer aisle, but they see the trends and are looking for growth opportunities. White Claw has a major voice with their distributor partners, who tend to be large and have the muscle to get their new innovations on the shelf. A 0% option is mostly self-explanatory, high margin, and provides their partners with a tool that could capture a bigger portion of expanding NA shelves and shopper’s basket ring. Similar to hop water, the question will arise over what section of the grocery store 0% Hard Seltzer should be merchandised in. Some will argue that it’s Sparkling Water and therefore should be placed next to La Croix, Pellegrino, and Spindrift. I would argue that the customer for this premium priced alternative to alcohol will be shopping in the NA section adjacent to the beer aisle.

Now, Do I Actually Believe All of This?

Yes and no…I do believe in all the theory behind these reasons, I just can’t say whether it’s enough to overcome the most important factor in this industry: Price. Regardless, I find the Devil’s Advocate exercise to be helpful, versus immediately crapping all over the idea. There’s a narrative for the 0% Hard Seltzer being the last lever to pull on a brand and category that’s been stretched as far as it can go. But then there’s another story that play’s into former White Claw brand manager Anthony Spina’s vision for System Seltzer that’s been around for years and positions Hard Seltzer as “Inclusive” with the flexibility to be 0%, 5%, and 8% ABV. What do you all think…is 0% a desperation heave for Hard Seltzer brands or the final piece of the puzzle?