The can
Dos Equis Ranch Water Hard Seltzer Classic Lime, $9.48 per six pack
The back story
It’s no secret that the hard-seltzer boom of just a few years ago has started to fizzle. After seeing triple-digit growth in 2019 and 2020, the category increased by a much more modest 16% in 2021. A variety of factors are at work, including the obvious fact the category may have started to play itself out, especially with the influx of so many brands.
But there could be an exception to all this — a subcategory of the hard seltzer market that appears poised to take off. Namely, hard seltzer in the style of ranch water.
Never heard of ranch water? It’s a classic Texas drink that, in its simplest form, combines tequila, lime juice and…seltzer (or sparkling mineral water). So it’s basically a hard seltzer by nature. (Or a highball with tequila instead of whiskey.) And companies that are offering packaged versions are finding success. Lone River, one of the most popular brands, has seen its distribution grow from 4 to 49 states in just over one year.
Dos Equis, the Mexican beer brand owned by Heineken
HEIA,
+2.38%,
is aiming to be a big player in this space. Last year, it launched its own ranch water in the “classic lime” flavor — what it calls “hard seltzer with country soul.” It’s part of an effort to broaden the brand’s reach beyond those who think of it just in terms of its popular lagers. The goal, says senior brand director Ligia Patrocinio, is to “drive greater relevance with new consumers.”
The strategy appears to be working: Dos Equis, which saw a 16.1% increase in overall U.S. brand sales last year, has already expanded its ranch water line to include a variety pack with blood orange, mango and spicy grapefruit flavors.
What we think about it
I’ve grown fairly tired of hard seltzer, a sip that seemed to be worth no more than the 15 minutes of fame it got. But I do like this Dos Equis ranch water. It’s a refresher in the most straightforward form: slightly boozy (though, technically, the alcohol in it is not tequila, but instead what Dos Equis calls a “sugar-based brew”), slightly lime-y and slightly fizzy. In other words, just what you want to drink on a hot day. I also like the fact it’s truly a light beverage, with a mere 90 calories per can.
How to enjoy it
You can sip this one straight from the can. But the Dos Equis folks say you can take it to the next level of refreshment by pouring over ice and adding a slice of lime (or other citrus fruit) for a garnish.
