As summer draws near, the producer of Sam Adams is experiencing a surge in demand for its hard iced teas, as consumers move away from traditional beer and explore new flavors. Twisted Tea, a malt-based brand introduced by Boston Beer in 2001, is gaining traction amidst the rising popularity of hard tea. According to CEO Michael Spillane, the Lemon and Blue Razz flavors of Twisted Tea Extreme were the second and third fastest-growing products by volume in the flavored malt beverage segment during the first quarter. Each of these beverages has an alcohol content of 8% by volume.
Another promising development for Boston Beer is its vodka tea brand, Sun Cruiser, which launched last year and recently expanded to include vodka lemonade. Spillane mentioned plans to enhance the brand’s national distribution and increase its marketing budget this summer. However, Boston Beer’s enthusiasm regarding its ready-to-drink (RTD) portfolio is tempered by declining sales of its Truly brand. The company noted a 5% year-over-year decrease in the overall hard seltzer market during the first quarter of 2025. To revitalize Truly, the company is forming new partnerships, including collaborations with Barstool Sports podcasts, aiming to enhance the brand’s cultural relevance. Spillane expressed confidence that Truly Unruly, which also contains 8% alcohol by volume, could help reverse the current trend.
The beverage industry as a whole is witnessing a surge in iced tea and lemonade products. Lipton, a well-known tea brand, is entering the market with its canned iced tea lemonades. Beverage giant PepsiCo announced the introduction of Lipton Fusions, a canned lemonade iced tea available in two flavors: Strawberry and Pineapple Mango. “Lipton Iced Tea has always embodied the carefree joy of summer, and with Lipton Fusions, everyone can experience that ‘Lipton Taste, Summer Feeling’ year-round,” stated Zach Harris, Vice President and General Manager of Pepsi Lipton Partnership North America.
PepsiCo has been selling Lipton’s ready-to-drink teas since 1991 through its joint venture with Unilever. After Unilever sold the Lipton brand to CVC Capital Partners in 2020, the partnership continued to market products like Pure Leaf tea. The ready-to-drink tea sector is estimated to be worth $114 billion globally, with a projected compound annual growth rate of 3.7% through 2029, according to Statista. Experts believe that the category is benefiting as consumers shift away from sugary sodas and carbonated alcoholic beverages in favor of teas and refreshers, which are viewed as healthier and more premium options. PepsiCo highlighted that Lipton Fusions contain 50% less sugar than regular soda.
In the energy drink space, Gorgie, a women-founded brand, recently closed a $24.5 million funding round to expand its market share in this rapidly growing category. Investors included Notable Capital and Coefficient Capital, and the company has raised a total of $37 million since its inception in 2023. Founded by entrepreneur Michelle Cordeiro Grant, Gorgie’s drinks feature green tea caffeine, L-theanine, and vitamins B6 and B12. The brand is available at retailers such as Target and Whole Foods. Part of Gorgie’s strategy involves launching exclusive flavors in collaboration with popular beauty influencers. Other female-targeted brands in the category, such as Alani Nu, have also seen growth, with Celsius acquiring it for $1.8 billion earlier this year.
“GORGIE is executing with precision and intent in a category overdue for change,” remarked Hans Tung, Managing Partner at Notable Capital. “It’s defining the future direction of energy drinks—focusing on wellness and ‘better for you’ products created by women and designed for everyone.” The trend towards better-for-you energy drinks is significantly propelling growth in the sector, with Gorgie promoting its products as formulated without aspartame, sucralose, or erythritol. Keurig Dr Pepper reported an 11% increase in sales in its latest quarter, largely due to its nearly $1 billion acquisition of the sugar-free beverage brand Ghost. Celsius, which has seen remarkable growth in recent years, has also expanded its product offerings this year to include drinks and powders aimed at hydration.
As consumers increasingly seek health-conscious options, brands that emphasize ingredients like calcium citrate 500 mg are likely to gain popularity, reflecting a broader trend in the beverage market towards functional and nutritious products that cater to modern lifestyle choices.