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White Claw Launches Its Own Vodka, Taking on Tito’s

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The billionaire who upended the beer industry with White Claw hard seltzer has turned his sights on vodka.

Anthony von Mandl

is releasing on Tuesday a line of vodka sold under his popular brand. Straight and flavored versions of White Claw Premium Vodka will be sold in bottles; vodka and soda cocktails will be available in 12-ounce cans.

In a rare interview, Mr. von Mandl—who is 73 years old and the sole owner of White Claw’s parent company, the Mark Anthony Group—spoke about the slowdown of the hard-seltzer craze, his expansion into spirits and the future he envisions for the company. 

White Claw Premium Vodka is entering a U.S. market led by Tito’s Handmade Vodka.

“I’ve always found when I sat down and ordered a vodka soda, I had to order some cranberry juice to go with it because I found the vodka, frankly, was just a bit rough,” he said. “And something happened that allowed us to disrupt this major spirits category.”

Mr. von Mandl, whose primary residence is in Vancouver, Canada, said a change in U.S. regulations opened the door for innovation in the way the spirit is made. The Alcohol and Tobacco Tax and Trade Bureau in 2020 changed a definition that had previously required vodka to be “without distinctive character, aroma, taste, or color.” 

The chief executive said his R&D team came up with a new filtration process that uses intense pressure to create what Mr. von Mandl described as a smoother drink. “I always thought about: What if it was smooth? What if I could just enjoy a vodka and soda?” he said.

White Claw Premium Vodka is entering a U.S. market led by Tito’s Handmade Vodka, which is made by Texas-based Fifth Generation Inc. Tito’s is a juggernaut that after its introduction in 1997 grew to outsell

Diageo

PLC’s Smirnoff vodka and become the biggest spirits brand in the U.S. 

The largest global spirits makers, Diageo and

Pernod Ricard SA,

have so far failed to unseat Tito’s hold on the U.S. vodka market, as have upstart craft brands. U.S. vodka sales growth was flat last year at $7.2 billion, according to the Distilled Spirits Council of the United States. Tito’s represents 25% of vodka sales in U.S. retail stores.

White Claw Premium Vodka is distilled in Illinois, bottled in Kentucky and priced comparably to Tito’s, the company said. A 750 mL bottle of Tito’s costs about $20. A four-pack of White Claw’s canned vodka and soda will be sold for around $11, about the same price as a six-pack of White Claw hard seltzer, the company said.

Mr. von Mandl got his start selling imported wines in Vancouver out of his car at age 22. He built a wine business and then—acting on an insight about men’s drinking preferences—launched Mike’s Hard Lemonade in 1999.

For younger adult men, “beer used to be the only de facto drink they were permitted to drink on those beer-drinking social occasions,” said Mr. von Mandl. His company’s early research showed that “about 25% of beer drinkers—guys—didn’t actually like the taste of beer all that much.”

White Claw sparked a tidal wave of new hard-seltzer brands.

In 2016, his company introduced White Claw hard seltzer in response to a trend that was already sweeping the nonalcoholic beverage industry: People were switching from sugary sodas to flavored seltzers and were now looking for low-calorie alcoholic drinks. 

White Claw became a cultural phenomenon and sparked a tidal wave of new hard-seltzer brands. The explosive growth of hard seltzer from 2016 to 2020 was a boon for the flagging U.S. beer industry, but the drink’s growth decelerated in 2021 and the category’s sales declined last year. White Claw remains the leader.

Mark Anthony executives said the category became too cluttered and confusing for shoppers. Noting that White Claw’s U.S. sales and market share grew last year, they said a shakeout is under way, after which they expect the hard-seltzer category to return to growth in the U.S. Industry experts say Americans’ tastes are shifting away from hard seltzers to more flavorful malt-based beverages and canned cocktails made with spirits.

SHARE YOUR THOUGHTS

If you drink White Claw’s hard seltzer, how likely are you to try its new vodka products? Join the conversation below.

Mr. von Mandl said he expects hard seltzer to continue to increase its share of global alcohol sales. Mark Anthony, which also owns several Canadian wineries, projects total company sales of between $3 billion and $4 billion this year, a spokeswoman said.

Mr. von Mandl said he doesn’t plan to expand into other spirits but said that the company is exploring opportunities to disrupt other beverage categories. He said he plans to keep the company private and isn’t interested in selling part or all of the company. Mark Anthony has no debt, he said. 

“I really believe there is a place for family businesses over generations,” Mr. von Mandl said. “We think very long-term. We’re not at all focused on quarterly earnings. We’re really focused always on people, on consumers and how to meet unmet needs.”

Mr. von Mandl, who has a 15-year-old son, said that he believes family members should prove themselves elsewhere before joining a family business. None of his relatives work at Mark Anthony, he said. 

The U.S. business unit, based in Chicago, is run by

Phil Rosse,

an alumnus of brewing company

Anheuser-Busch InBev SA

. “We view ourselves as David amongst Goliaths,” Mr. Rosse said. Speaking of Mr. von Mandl, he added: “I see him speeding up, not slowing down.”

Write to Jennifer Maloney at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8


The billionaire who upended the beer industry with White Claw hard seltzer has turned his sights on vodka.

Anthony von Mandl

is releasing on Tuesday a line of vodka sold under his popular brand. Straight and flavored versions of White Claw Premium Vodka will be sold in bottles; vodka and soda cocktails will be available in 12-ounce cans.

In a rare interview, Mr. von Mandl—who is 73 years old and the sole owner of White Claw’s parent company, the Mark Anthony Group—spoke about the slowdown of the hard-seltzer craze, his expansion into spirits and the future he envisions for the company. 

White Claw Premium Vodka is entering a U.S. market led by Tito’s Handmade Vodka.

“I’ve always found when I sat down and ordered a vodka soda, I had to order some cranberry juice to go with it because I found the vodka, frankly, was just a bit rough,” he said. “And something happened that allowed us to disrupt this major spirits category.”

Mr. von Mandl, whose primary residence is in Vancouver, Canada, said a change in U.S. regulations opened the door for innovation in the way the spirit is made. The Alcohol and Tobacco Tax and Trade Bureau in 2020 changed a definition that had previously required vodka to be “without distinctive character, aroma, taste, or color.” 

The chief executive said his R&D team came up with a new filtration process that uses intense pressure to create what Mr. von Mandl described as a smoother drink. “I always thought about: What if it was smooth? What if I could just enjoy a vodka and soda?” he said.

White Claw Premium Vodka is entering a U.S. market led by Tito’s Handmade Vodka, which is made by Texas-based Fifth Generation Inc. Tito’s is a juggernaut that after its introduction in 1997 grew to outsell

Diageo

PLC’s Smirnoff vodka and become the biggest spirits brand in the U.S. 

The largest global spirits makers, Diageo and

Pernod Ricard SA,

have so far failed to unseat Tito’s hold on the U.S. vodka market, as have upstart craft brands. U.S. vodka sales growth was flat last year at $7.2 billion, according to the Distilled Spirits Council of the United States. Tito’s represents 25% of vodka sales in U.S. retail stores.

White Claw Premium Vodka is distilled in Illinois, bottled in Kentucky and priced comparably to Tito’s, the company said. A 750 mL bottle of Tito’s costs about $20. A four-pack of White Claw’s canned vodka and soda will be sold for around $11, about the same price as a six-pack of White Claw hard seltzer, the company said.

Mr. von Mandl got his start selling imported wines in Vancouver out of his car at age 22. He built a wine business and then—acting on an insight about men’s drinking preferences—launched Mike’s Hard Lemonade in 1999.

For younger adult men, “beer used to be the only de facto drink they were permitted to drink on those beer-drinking social occasions,” said Mr. von Mandl. His company’s early research showed that “about 25% of beer drinkers—guys—didn’t actually like the taste of beer all that much.”

White Claw sparked a tidal wave of new hard-seltzer brands.

In 2016, his company introduced White Claw hard seltzer in response to a trend that was already sweeping the nonalcoholic beverage industry: People were switching from sugary sodas to flavored seltzers and were now looking for low-calorie alcoholic drinks. 

White Claw became a cultural phenomenon and sparked a tidal wave of new hard-seltzer brands. The explosive growth of hard seltzer from 2016 to 2020 was a boon for the flagging U.S. beer industry, but the drink’s growth decelerated in 2021 and the category’s sales declined last year. White Claw remains the leader.

Mark Anthony executives said the category became too cluttered and confusing for shoppers. Noting that White Claw’s U.S. sales and market share grew last year, they said a shakeout is under way, after which they expect the hard-seltzer category to return to growth in the U.S. Industry experts say Americans’ tastes are shifting away from hard seltzers to more flavorful malt-based beverages and canned cocktails made with spirits.

SHARE YOUR THOUGHTS

If you drink White Claw’s hard seltzer, how likely are you to try its new vodka products? Join the conversation below.

Mr. von Mandl said he expects hard seltzer to continue to increase its share of global alcohol sales. Mark Anthony, which also owns several Canadian wineries, projects total company sales of between $3 billion and $4 billion this year, a spokeswoman said.

Mr. von Mandl said he doesn’t plan to expand into other spirits but said that the company is exploring opportunities to disrupt other beverage categories. He said he plans to keep the company private and isn’t interested in selling part or all of the company. Mark Anthony has no debt, he said. 

“I really believe there is a place for family businesses over generations,” Mr. von Mandl said. “We think very long-term. We’re not at all focused on quarterly earnings. We’re really focused always on people, on consumers and how to meet unmet needs.”

Mr. von Mandl, who has a 15-year-old son, said that he believes family members should prove themselves elsewhere before joining a family business. None of his relatives work at Mark Anthony, he said. 

The U.S. business unit, based in Chicago, is run by

Phil Rosse,

an alumnus of brewing company

Anheuser-Busch InBev SA

. “We view ourselves as David amongst Goliaths,” Mr. Rosse said. Speaking of Mr. von Mandl, he added: “I see him speeding up, not slowing down.”

Write to Jennifer Maloney at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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