Cutwater Nears $1 Billion in Sales Amidst Shifting Alcohol Trends

Cutwater, a ready-to-drink (RTD) spirits brand, is on track to reach $1 billion in annual sales. The company has experienced rapid revenue growth, becoming one of the key growth drivers for parent company Anheuser-Busch InBev (AB InBev).

The brand's sales have surged by triple digits, making it the second-largest contributor to AB InBev's overall revenue growth in the second quarter. AB InBev, the world's largest brewer, has responded to this demand by introducing new flavors, despite a general decline in alcohol consumption in the United States.

During AB InBev's second-quarter earnings call, CEO Michel Doukeris highlighted Cutwater's performance, stating it was the fastest-growing company in the spirits sector and the largest market share gainer. "This brand was nonexistent six or seven years ago and is moving towards becoming a $1 billion brand," Doukeris remarked.

Cutwater's success contrasts with a broader industry trend favoring non-alcoholic or lower-alcohol options. The brand focuses on high-alcohol content canned cocktails, typically ranging from 7% to 13% ABV. Popular offerings like the Long Island Iced Tea contain significantly more alcohol than standard beers.

The brand originated from Yuseff Cherney, co-founder of Ballast Point Brewing, who began distilling spirits as a side project in 2007. This eventually led to the launch of Cutwater Spirits, which was acquired by AB InBev in 2019.