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Cutwater Nears $1 Billion in Annual Sales as AB InBev's Canned Cocktail Brand Bucks Industry Trends
ReCutwater Nears $1 Billion in Annual Sales as AB InBev's Canned Cocktail Brand Bucks Industry Trends
Cutwater, the ready-to-drink canned cocktail brand owned by Anheuser-Busch InBev, is approaching $1 billion in annual sales, driven by triple-digit revenue growth that has made it the second-largest contributor to AB InBev's overall revenue growth and the fastest-growing brand in the U.S. spirits industry.
Cutwater, the ready-to-drink canned cocktail brand owned by Anheuser-Busch InBev, is closing in on $1 billion in annual sales, a milestone that would cap one of the fastest ascents in the spirits industry. The brand's revenue growth has hit triple digits, making it one of the biggest growth engines for its parent company, the world's largest brewer.
During AB InBev's second-quarter earnings call, CEO Michel Doukeris told investors and analysts that Cutwater had become the «number one share gaining brand» in the entire spirits industry. He noted that the brand «was inexistent six, seven years ago» and is now a top six or seven brand by overall size in U.S. spirits. In the second quarter, Cutwater was the second-largest contributor to AB InBev's overall revenue growth.
The brand's rise comes as alcohol consumption and sales in the United States sit at record lows, with a growing number of non-alcoholic beers and mocktail options gaining shelf space. Cutwater has succeeded by moving in the opposite direction. Every 12-ounce can carries a guarantee of «2+ shots of real spirits,» with alcohol content ranging from 7 to 13 percent. Most flavors sit above 10 percent. The popular Long Island Ice Tea flavor contains more than three times the alcohol of a Bud Light or a Surfside.
That potent formula has turned Cutwater's booziness into a cultural talking point. Last October, GQ dubbed the brand «the chaotic king of canned cocktails.» Earlier this summer, the Atlantic warned that the cans «will smash you to the ground.» On TikTok, comedian Loryn Powell drew more than 8 million views with a video in which she gave herself a breathalyzer test after drinking two cans in an hour. One lime margarita registered a blood alcohol concentration of 0.066, just below the legal driving limit of 0.08; the second pushed her above 0.09. Another creator told followers to leave Cutwater on the shelf, saying she could not remember filming the end of her video after two cans.
Cutwater's origins trace back to a side project. In 2007, Yuseff Cherney, co-founder and head brewer at Ballast Point Brewing in San Diego, began using an old beer fermenter to distill vodka, gin, rum, and whiskey. That effort became Ballast Point Spirits, which spun off when the beer brand was sold to Constellation for $1 billion in 2015. The following year, the canned cocktails were rebranded and Cutwater Spirits launched. AB InBev acquired the ready-to-drink brand in 2019 for an undisclosed sum.
The brand now offers two dozen vodka, tequila, whiskey, gin, and rum concoctions. AB InBev, a $150 billion beverage giant, has continued rolling out new flavors to meet demand. Doukeris said on the earnings call that Cutwater was the fastest-growing company in spirits because of the performance of the brand itself. For a company whose core beer business faces shifting consumer habits, Cutwater's trajectory offers a rare growth story in a shrinking alcohol market.
