Background and Market Context

The canned cocktail category has reached a pivotal moment, with ready-to-drink (RTD) spirits emerging as the summer beverage of choice. As hard seltzer sales begin to decline, High Noon, which offers juice- and vodka-based concoctions, has established itself as the clear leader with a 27% market share, according to Beer Marketers’ Insights. Close behind is Anheuser-Busch’s Cutwater, holding 14% of the category. The market is becoming increasingly competitive, with numerous imitators poised to enter.

Strategic Investments and Growth

To maintain and expand its lead, High Noon has invested significantly in its brand, marking it as the fastest-growing entity in the spirits category. When compared with hard seltzers—typically malt- or sugar-based—High Noon is in close competition with Topo Chico for fourth place, trailing behind White Claw, Truly, and Bud Light Seltzer.

Marketing and Messaging

Central to High Noon's marketing strategy is its 'Sun's Up' campaign, which promotes an optimistic and vibrant lifestyle. A new 60-second advertisement, crafted by the agency Preacher, features a narrator who delivers a series of cheerful blessings to the audience. The spot encourages viewers to "live like the sun is always out," promoting the brand as the ideal drink for friend-fueled occasions such as lake outings, hot tub gatherings, and golf games.

Brandon Lieb, Vice-President of Spirit at Gallo, states that the campaign aims to create a mindset or vibe for the brand that resonates with consumers. The advertisements not only promote the product but also encourage consumers to switch from malt-based hard beverages to High Noon’s vodka and real juice offerings.

Competitive Landscape and Consumer Trends

High Noon has successfully persuaded its target audience—primarily twenty-somethings—to trade up from hard seltzers. David Steinman, Executive Editor of Beer Marketers’ Insights, notes that High Noon continues to experience strong double-digit growth, even as the hard seltzer market slows and declines. This success has attracted a wave of competitors, including Truly Vodka Seltzer and Anheuser-Busch’s Nütrl Vodka Seltzer. Major spirits companies are also entering the fray, driven by the rapid growth of this segment.

Innovation and Product Expansion

Recognizing the importance of flavor diversity in the canned cocktail segment, High Noon has introduced new products to stay ahead of the competition. Its ‘Pool Pack’ features new guava and kiwi flavors, and the brand has launched a 700ml resealable can to meet consumer demand for larger packaging. Additionally, High Noon has ventured into lifestyle branding with a new swimsuit collaboration with Tropical Bros.

Comprehensive Marketing Efforts

To support its growth and product innovations, High Noon has implemented a robust marketing strategy. This includes TV advertisements across broadcast and streaming platforms, social media campaigns, out-of-home (OOH) ads, search engine marketing, and public relations efforts. The brand’s significant investment in its marketing budget underscores its commitment to maintaining its premium position in the market.

Future Outlook

According to Lieb, High Noon sees a substantial opportunity to solidify its status as the premium option in the expanding canned cocktail segment. With continued investment in marketing and product innovation, the brand is poised for ongoing success. Lieb emphasizes that High Noon’s recent growth is just the beginning, with many exciting developments on the horizon.

Conclusion

High Noon’s strategic investments, innovative product offerings, and compelling marketing campaigns have positioned it as the dominant player in the canned cocktail category. As the market evolves and new competitors emerge, High Noon’s commitment to quality and consumer engagement will be crucial in sustaining its leadership and driving future growth.