Data supports the tactic, with consumers clamoring for hard seltzers, lemonades, kombuchas and other ready-to-drink spirits that make up the flavored malt beverage segment. The drinks more than doubled their U.S. dollar sales in recent years, going from $4.6 billion in 2019 to $9.5 billion in 2022, per IRI Unify.
Hard iced tea, while not as mature as spiked seltzer, is still gaining strength, with players such as Boston Beer Co.’s Twisted Tea leading a pack that also includes entries from Pabst and liquor behemoth Anheuser Busch. Molson Coors plans to drop Peace Hard Tea around Labor Day via a collaboration with Coca-Cola.
On its own, the hard iced tea market racked up nearly $2 billion in global sales in 2021, according to Grandview Research, with the figure expected to reach $14.5 billion by 2030.
Against that backdrop, Lipton’s entry adds up, especially since it may expose the brand to younger, trendier consumer groups, said Gabor, who noted that iced tea has been known historically as “a grandma drink.”
“It seems like an effective strategic expansion of the Lipton brand to attract a new demographic of buyers who have a lot of purchase influence,” Gabor said. “It also allows them to glom onto a fast-growing marketplace trend.”
‘Sky-high expectations’
The manufacturer went through “dozens of versions” of Lipton Hard Iced Tea before settling on its four flavors—lemon, half-and-half, peach and strawberry—because “nailing the product itself” was the priority, according to brand director Lisa Texido.
Because there is trust in the original formula, “we knew consumers would have sky-high expectations for the hard version,” Texido told Adweek.
The product is rolling out to 33 states this year, with full national distribution expected by early 2024, accompanied by another round of creative that will continue the “obviously” theme.
