Hard seltzer products, like the popular White Claw brand, have exploded in popularity in 2019 and as a much lighter alternative to beer. After an earnings call on Friday, Boston Beer Company (SAM) CEO Dave Burwick gave an idea of just how significant the product has been on the industry.

“There’s this fundamental shift right now that hasn’t happened in the beer category since light beer was launched in the late ’70s, which is called hard seltzer,” Burwick said in an interview with CNBC's “Closing Bell.”

“Millenials, say 21-to-35-year-olds today, are not drinking as much as the people who came before them, but they’re drinking better. When you look at those trends of health and wellness, variety seeking and premiumization, it all supports the growth of this hard seltzer category.”

Boston Beer, best known for brands like Samuel Adams and Angry Orchard, saw its price of shares surge Friday by over 25%.

The company first launched Truly Hard Seltzer in Spring 2016. Due to the recent explosion in the category’s popularity, Boston Beer posted a 100% growth in per-share earnings compared to the second quarter of 2019.

The coronavirus pandemic has also helped hard seltzer grow in popularity, according to Burwick, with prior trends accelerating with many under lockdown. Burwick said that Boston Beer’s shipment of Truly products jumped 35% during the second quarter of 2020. While not as high, Burwick also said that the pandemic has increased demand for Samuel Adams and Angry Orchard by double digits.

“We’re in a category where there’s not a lot of growth, Burwick said. “And I think we’re being rewarded for growth and rewarded for keeping the business operating as best we can.”

French brewers face a massive hangover from the coronavirus lockdown with 10 million litres of undrunk beer having to be discarded
French brewers face a massive hangover from the coronavirus lockdown with 10 million litres of undrunk beer having to be discarded AFP / KENZO TRIBOUILLARD
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