Major US brewers are racing to launch smaller beers, roughly half the size of standard products, in a push to win over consumers. The spread of GLP-1 drugs such as the weight-loss treatment Wegovy has increased the number of people looking to cut back on alcohol, while a health-conscious drinking culture has taken hold, making smaller-volume beer a new growth driver.
According to the Wall Street Journal on Tuesday, major brewers including craft beer maker Sierra Nevada Brewing Co. and Constellation Brands, which owns the Corona and Modelo brands, are expanding their lineups of small-volume cans and bottles known as "pony" beers.
Pony beers hold about 7 to 9 ounces (approximately 198 to 255 milliliters), smaller than the standard US beer size of 12 to 16 ounces (about 340 to 450 milliliters). Sales are rising as the size, easy to finish in one sitting, aligns with recent shifts in consumer drinking habits.
The industry sees the Independence Day (July 4) holiday, the peak beer-consumption season in the US, as the biggest opportunity. According to the Beer Institute, beer sales during the week that includes Independence Day average 37% higher than usual.
Craig Purser, CEO of the National Beer Wholesalers Association, told the WSJ, "We expect pony beers to bring new opportunities to the market," adding, "Consumers no longer have to make the choice of drinking 12 ounces at once."
The market response has also been positive. Sierra Nevada found higher-than-expected demand after introducing a small-volume pilsner can last fall. It initially sold only eight-can packs, but starting this fall it plans to add 16-can packs in some regions.
Ellie Preslar, chief growth officer at Sierra Nevada, explained, "We did not expect a small size to be chosen by such a broad range of consumers," adding, "In particular, parents who are trying to cut back on drinking are embracing it as a product that lets them enjoy a light beer in the evening after taking care of their children."
The spread of GLP-1 weight-loss drugs is cited as the biggest factor behind the renewed attention on small-volume beer. As more consumers use Wegovy, Ozempic and Zepbound, a trend has emerged of reduced consumption not only of food but also of alcohol.
Consulting firm OC&C Strategy Consultants forecast in a recent report that GLP-1 drugs will influence changes in food and beverage consumption patterns through at least 2031. About 12% of Americans currently use such drugs, a figure expected to rise to 15% to 18% within the next five years. The firm also found that consumers who used GLP-1 drugs for one year cut their spending on alcohol by an average of 7%.
A survey by the British nonprofit Drinkaware also found that GLP-1 users tend to reduce the amount they drink or choose smaller volumes rather than quit alcohol entirely. The survey found that these consumption habits affect family members and friends as well, contributing to the spread of a moderate-drinking culture.
Brewers view these changes as a new opportunity. Nick Fink, CEO of Constellation Brands, announced plans to expand related products, saying, "The increase in the use of weight-loss drugs is an opportunity to broaden the usefulness of small beers and connect them with a consumption culture of 'small but satisfying rewards.'"
Constellation Brands is expanding its small-format lineup, following its existing small-volume Corona bottle "Coronita" with its Pacifico brand.
The pony beer itself is not a new concept. It first appeared in the late 19th century, Coors launched an aluminum pony can in the 1950s, and Rolling Rock's small bottles gained popularity in the 1980s. Unlike back then, however, health and moderate-drinking trends are now cited as the key factors driving market expansion.
Brewers face no small amount of concern. According to consulting firm Bump Williams, US beer shipments through April this year fell 1.6% from the same period last year. While sales of small-volume beer are rising quickly, their share of the overall market is still not large.
Hot weather is also cited as an advantage of small beers. Large-volume beers can quickly turn warm while being consumed, but small volumes can be finished in a short time, making it easier to keep them cold.
Greg McLeod, head of Florida distributor Pepin Distributing, said, "In hot regions, the ability to briefly dip a small-volume beer in ice and drink it cold to the last drop is proving to be a major draw for consumers."
