Budweiser is rolling out a new line of flavored vodka

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Budweiser is rolling out a new line of flavored vodka

The beer giant Natural Natty Light BUD introduced flavored vodka. The brand, owned by Anheuser-Busch and best known for its reduced-calorie beers, launched the new product line in 3 flavors — lemonade, strawberry lemonade and black cherry.

At 30% ABV liquor by volume, Natty Vodka is the first-ever spirt extension from Anheuser-Busch.

Natural Light is constantly looking to innovate and evolve to meet the evolving taste preferences of our fans. Daniel Blake, Anheuser-Busch Group VP of Budweiser value, says nothing off the table.

Flavored vodka is one of the fastest growing segments in spirits and we knew Natty was the brand to show up to the party with a great tasting offering to set us apart, Blake continued.

The latest rollout comes as more alcohol brands deviate from their core product lines to better capture shifting consumer preferences.

According to a new CFRA research report, 2020's COVID spikes led U.S. alcohol consumption to rise by the fastest rate in 18 years for the first time. Volumes grew 2% despite steep drop off in on-premise sales from restaurants, bars and event venues.

Market analytics firm IWSR explained that traditional non-flavored subcategories, from beer to vodka to U.S. whiskey are significantly outperforming flavored subcategories of beer and other spirits. Flavor is also the fastest growing consumer driver of the total ready-to- drink category, which is likely leading to a halo effect on total alcohol as well, IWSR continued.

U.S. beer consumption has steadily declined over the past 10 years, which has come at a higher cost to domestic brands.

The North American beer industry, sometimes referred to as a duopoly consisting of Molson Coors and Anheuser-Busch collectively possessed 63% market share in 2020. That's a double-digit decline from 73% in 2014, CFRA noted.

Imported beer sales have also grown, rising 3.1% in 2020 compared to a 4.4% decline for domestic beer over same period.