The Rise Of White Claw: From Obscurity To Cultural Phenomenon

If you think White Claw came out of nowhere to suddenly be everywhere, well, you’re not wrong. The first time I heard of it was in June 2019, at Bonnaroo, and by the time I made it back to the west coast, the hard seltzer beverage was not only everywhere, but it had also become a pop-culture phenomenon and a part of every basic drinker's starter package. This summer, White Claw outsold every craft beer in the U.S. It even outsold Budweiser for a while!

The founder of White Claw, Anthony von Mandl, has been involved in the spirits business since he graduated from college in the early 1970s. Initially, he ran a wine-importing business in Vancouver, British Columbia, which struggled to gain traction. Convincing Canada’s liquor boards to buy foreign wines was a tough battle, but von Mandl's persistence eventually led to a groundbreaking idea that changed his fortunes forever.

This idea blossomed into the hugely popular Mike's Hard Lemonade. Two decades ago, it was impossible to attend a party without encountering it. It was so popular that fights broke out in liquor stores over the last six-packs! These niche alcoholic beverages have made von Mandl, now 69 years old, a multibillionaire with an estimated net worth of $3.4 billion.

Anthony von Mandl: A Legacy in the Beverage Industry

Anthony von Mandl's passion for wine hasn't waned despite his massive success with hard seltzers. He has invested a significant portion of his fortune back into the wine industry, acquiring multiple wineries in the beautiful Okanagan Valley of British Columbia. His commitment to quality has led to the production of award-winning wines, including Pinot Noirs and Chardonnays.

He purchased his first winery in 1981, right as the Okanagan Valley began to flourish. Today, he owns over 1,000 acres of vineyard, and his Mission Hill wines are priced at an impressive $250 per bottle. Notably, his winery has even hosted Prince William and Kate Middleton during their visit in 2016, further solidifying its prestige.

At the helm of the Mark Anthony Group, von Mandl continues to innovate. While his first love remains wine, it is in the hard seltzer market where he has made his fortune. Recognizing a gap in the market where 25% of men didn’t want to drink beer but also didn’t want to be seen with other beverages, he pivoted to create something new and refreshing.

The Evolution of Hard Seltzer

White Claw is essentially a modern reinterpretation of the Mike's Hard Lemonade concept, capitalizing on the current health craze. It has successfully removed the sweetness that characterized its predecessor and lowered the calorie count to cater to health-conscious consumers. With an alcohol content similar to beer—around 5%—it has become a popular choice among young adults.

Over the past year, the sales of hard seltzers like White Claw and Boston Beer Co.'s Truly have skyrocketed, almost tripling, even as Americans have been drinking less alcohol overall for three consecutive years. White Claw holds a commanding 55% market share while Truly accounts for 15%. The competition, however, is fierce, with major brands like Anheuser-Busch and Molson Coors Brewing stepping into the market.

Mark Anthony Brands has risen to be the fourth-largest beer company in the U.S., largely due to an impressive 85% growth in sales. White Claw is projected to achieve nearly $4 billion in revenue for 2020, highlighting the brand's phenomenal success.

Investing in the Future

To meet the growing demand, von Mandl's company is investing $250 million in new production facilities across the U.S. This strategic move aims to bolster White Claw's availability and production capabilities. Additionally, the brand has harnessed the power of social media for marketing. A humorous video by comedian Trevor Wallace, which parodies White Claw drinkers, has garnered over three million views and popularized the catchy phrase, “Ain’t no laws when you’re drinking Claws.”

The journey of White Claw from obscurity to a household name is remarkable. It exemplifies how innovation, market awareness, and strategic branding can transform an idea into a billion-dollar industry. As White Claw continues to dominate the hard seltzer market, it will be interesting to see how it evolves and adapts to changing consumer preferences.

Personal Details of Anthony von Mandl

Von Mandl's trajectory in the beverage industry serves as an inspiration for aspiring entrepreneurs and established businesses alike. It shows the importance of adaptability and understanding market trends to achieve success.

With the ever-growing popularity of hard seltzers, White Claw has carved a niche for itself, proving that innovative thinking and strategic marketing can lead to widespread acceptance and success in a competitive industry.