The next generation of drinkers is breaking up with bubbly booze

As is often the case in the alcohol industry, innovation starts with smaller manufacturers and then bigger brands have to race to catch up with new products or buy their way into the market. Photo by Spencer Platt/Getty Images

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At bars and college parties across the country, traditional alcoholic beverages are going flat. Vodka waters are replacing vodka seltzers. Even tequila is being mixed with water instead of soda.

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After first trying Surfsides at a New Jersey beach a few years ago, Emily Aprigliano switched to the canned cocktails as her go-to drink on a night out. Tequila sodas and vodka cranberries weren’t as easy on her stomach as the new hard teas and lemonades.

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“Because there’s no bubbles, you don’t feel so full,” says the 26-year-old analytics manager in New York City. “You can’t even taste the alcohol, so they just kind of go back easier.”

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The trend isn’t exclusive to booze; bubbly water sales are also on the decline. But with U.S. alcohol consumption at a historic low, capturing this shift is critical if the industry is going to win over the next generation of drinkers. A recent Gallup poll found that just half of Americans ages 18 to 34 are drinking, down from 58 per cent three years ago.

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Those who do imbibe say they’re looking for healthier options, including low-calorie and sugar-free beverages, without all the potential side effects that come with beers and seltzers.

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“Suddenly everyone has acid reflux,” says Britt West, chief commercial officer of wine and spirits maker Gallo. “They believe that by drinking these drinks without carbonation, they don’t feel as bloated, it doesn’t give them heartburn.”

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Aprigliano says she and her boyfriend stuck with Surfsides at a recent event even when they cost US$13 a pop. “I was like, whoa, that’s a little expensive, but I would pay for it because I actually enjoy it,” she says.

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Philadelphia-based Stateside Brands plays up the lack of bubbles in its marketing for Surfside, which has become one of the fastest-growing alcohol brands in the U.S. The family-owned company has even submitted a trademark for its slogan, “No Bubbles, No Troubles.”

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Two years after Surfside debuted in 2022, Sun Cruiser hit the market from Boston Beer Co. The brand has similar flavours and also contains 100 calories per 12-ounce can, 4.5 per cent alcohol by volume and “no bubbles.” Boston Beer told investors in July that Sun Cruiser is rapidly growing sales in places like bars and restaurants. That’s helping make up for sluggish demand for other products including Truly seltzers and Dogfish Head beers. Boston Beer’s shares have fallen 10 per cent this year, compared with a 13 per cent gain for the S&P Midcap 400 Index over that time.

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Reflux on the Rise

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Alcoholic or not, carbonated drinks can have an impact on how someone feels, especially if they have an underlying digestive problem. Traditional soda brands have been in decline for years outside of zero- or low-sugar options, or new formulas with things like probiotics.