Anheuser-Busch InBev and PepsiCo have made waves in the beverage industry with their latest collaboration, announcing the launch of Svns Hard 7Up, an alcoholic beverage set to hit the shelves in Canada. This strategic partnership aims to capitalize on the growing demand for innovative alcoholic options in the ready-to-drink (RTD) category, reflecting shifting consumer preferences.

Labatt Breweries, the Canadian subsidiary of AB InBev, disclosed that Svns Hard 7Up fills a noticeable gap in the market, boasting a 7% alcohol by volume (abv). The RTD category in North America has experienced explosive growth, doubling over the past two years with an impressive 104 percent increase, driven largely by consumers’ inclination towards non-beer brands.

“RTD drinkers are seeking brands beyond traditional beer offerings,” emphasized Labatt, highlighting the innovative positioning of Svns Hard 7Up in the Canadian market.

Svns Hard 7Up will be exclusively available in Canada, with production facilities located at Labatt’s breweries in London, Edmonton, and Montreal. The beverage will be offered in 355ml single-serving cans, as well as in six and 12-packs, catering to different consumer preferences.

The product lineup includes an ‘original’ variant available nationwide, a lemonade flavor sold in select markets, and a malt-based version tailored specifically for Quebec. Mike D’Agostini, Director of Labatt’s ‘beyond beer’ division, underscored the company’s dedication to meeting Canadian preferences and seizing growth opportunities in the burgeoning RTD market.

This collaboration between AB InBev and PepsiCo aligns with a broader industry trend of major players joining forces to diversify their portfolios and cater to evolving consumer tastes. Earlier this year, The Coca-Cola Co. partnered with Brown-Forman to introduce a Jack Daniel’s RTD, followed by the launch of the Absolut & Sprite canned cocktail in collaboration with Pernod Ricard.

Labatt Breweries in Canada has been actively expanding its presence in the RTD market, as evidenced by its acquisition of RTD Cocktail maker Goodridge & Williams in 2020. Goodridge & Williams is renowned for its range of ready-to-drink canned cocktails, including the highly successful Nütrl Vodka Soda, which has emerged as Canada’s fastest-growing vodka soda brand since its inception in 2017.

The introduction of Svns Hard 7Up underscores AB InBev and PepsiCo’s commitment to innovation and meeting the evolving demands of consumers, as they continue to navigate the dynamic landscape of the beverage industry.