In a letter addressed to the FDA, the Center for Science in the Public Interest (CSPI) and the Consumer Federation of America (CFA) argued that Molson Coors’ claims about Vizzy breach the Federal Food, Drug, and Cosmetic Act. They contend that these assertions suggest Vizzy is a “healthful source of nutrients,” thereby obscuring the reality that alcoholic beverages contain empty calories, are linked to significant health risks, and can disrupt the body’s metabolism of nutrients. The consumer organizations called on the FDA to “take immediate enforcement action” against Molson Coors for making such claims. “Alcohol is never a good way to obtain nutrients,” the CFA and CSPI stated. They expressed concern that if these claims are not explicitly banned, more manufacturers may try to market alcoholic beverages as healthy nutrient sources, misleading consumers about the health implications of these drinks. Notably, CSPI highlighted that this is the first instance in which they have requested the FDA to act against claims made about an alcoholic beverage.
Marty Maloney, a spokesperson for Molson Coors, responded by stating that while antioxidant Vitamin C is a distinguishing feature of Vizzy, the company has always aimed to communicate this product attribute responsibly. The FDA acknowledged receipt of the letter and indicated that it is “reviewing the letter and will respond directly to the writers.”
As the demand for hard seltzers continues to rise, major beer companies are increasing their investments in production. Last December, Molson Coors announced it would boost production capacity for seltzers and popular products by over 400%. The beverage giant reported that sales of Vizzy, Coors Seltzer, Blue Moon LightSky, and other products are thriving nationwide. Additionally, Molson Coors is the exclusive manufacturer, marketer, and distributor of Coca-Cola’s Topo Chico Hard Seltzer in the U.S.
Anheuser-Busch, a subsidiary of AB InBev, declared in February that it plans to invest over $50 million this year in new seltzer brewing capabilities. The company has already poured significant resources into this segment, launching Bud Light Seltzer, Natural Light Seltzer, cocktail-inspired hard seltzers, and Michelob Ultra Organic Seltzer. According to a January report from Evercore ISI, Mark Anthony Brands’ White Claw and Boston Beer’s Truly together command 75% of the market, with Bud Light Seltzer holding a 9.7% share and no other seltzer brand exceeding 3%.
Molson Coors is undoubtedly aiming to capture a larger portion of this market, especially as its traditional beer sales face challenges. Offering a product that serves as a hard seltzer while also delivering functional benefits may attract consumers who seek more than mere sustenance or enjoyment from their food and drinks. A 2019 study by Kerry indicated that 65% of consumers desire functional advantages in their food and beverages. Moreover, Research and Markets projected that the global functional beverage market will reach a value of $158.3 billion in 2023.
With numerous products competing for attention on store shelves, establishing a trendy brand that stands out in this crowded market could lead to millions in sales for Molson Coors. Recent lawsuits highlight the significant financial stakes involved. Future Proof Brands, the parent company of Brizzy hard seltzer, accused Molson Coors of appropriating its product name for Vizzy. Last month, Grupo Modelo, AB InBev’s Mexican division, filed a lawsuit against Constellation Brands, alleging a breach of a brand licensing agreement with the launch of Corona Hard Seltzer.
As noted by CSPI and CFA in their correspondence, other hard seltzer producers are likely monitoring the situation with Molson Coors closely. If alcohol companies perceive that making such claims is permissible and leads to increased sales, they may follow Molson Coors’ lead or devise alternative strategies that comply with FDA regulations. The discussion around nutrient claims might even extend to products like calcium citrate injection, which is known for its health benefits, further blurring the lines in consumer perception of healthful options in the beverage industry.