How High Noon Became the Best-Selling Spirit* in America
In 2023 High Noon retained its position as the number one-selling spirit by volume in the United States, a title it first claimed in 2022 after it dethroned Tito’s. That’s pretty impressive for a brand that only launched in 2019. What exactly led to such a meteoric rise for the brand? There are a variety of reasons and I’ll explore some of the main ones here.
The Asterisk
To say High Noon is the best-selling spirit in the US is utter crap. It’s comparing apples to oranges, or, in this case, a low-proof RTD to higher proof spirits. In 2023 High Noon sold 21.4 million 9L cases, compared to 12.1 million 9L cases of Tito’s. But we’re comparing two very different things here even if they both use spirits as a base.
A 9L case of Tito’s is made up of 12 750ml bottles. With varying package sizes, the 9L case an easy way to normalize volume. In each of those 750ml bottles, there are approximately 17 servings (1.5 oz.) of 40% ABV vodka. For a 9L case, it works out to almost 203 servings.
High Noon comes packaged in 12 oz. cans at 4.5% ABV. Each can is considered a serving (actually just slightly under since 12 ounces at 5% ABV constitutes a serving). A 9L case would work out to just over 25 cans, or 25 servings. (Honestly, I’m being gracious here since it’s really 22.5 servings thanks to that lower ABV.)
Yes, High Noon sells a lot of volume, but it’s (literally) watered down. In reality its 9L case contains more than 8 times fewer servings than a 9L case of Tito’s. If we normalize the servings, it’s more like High Noon sold 2.7 million 9L cases last year, which means it doesn’t even crack the top 10. For comparison, that puts it a bit behind Patron’s 2022 volume numbers.
A better comparison is to look at High Noon versus other seltzers and beer, products with a similar serving size. In early December 2023, it was estimated by Impact Databank that 85 million 2.25 gallon cases of White Claw had been sold. A 9L case equals 2.38 gallons, so High Noon sold approximately 50,879,570 gallons in 2023, or 22.6 million 2.25 gallon cases. White Claw sold nearly 4 times as much as High Noon.
Now let’s convert High Noon to barrels, the common measurement for beer. One barrel equals 31 gallons. High Noon sold approximately 1.6 million barrels in 2023, which would land it at number 2 on the Brewer’s Associations 2022 Top 50 list of largest craft breweries, behind Yuengling but slightly ahead of Boston Beer, but also nowhere near the big non-craft producers.
So High Noon isn’t really the best-selling spirit and it’s not even close to the best-selling seltzer. It’s large and the growth is impressive, but it’s not quite the success story it makes itself out to be. But of course all that bragging about being the best-selling spirit inevitably drives more growth as people love being associated with what’s cool and popular.
Flexing Their Muscle
High Noon is owned by E&J Gallo, the largest wine company in the world. Because of its size, Gallo has a ton of muscle and influence, the kind that ensures a brand new product with no record of success gets included on all the shelves of major retailers at its launch and also ends up with some large volume displays to boot. Not only does that provide wide access to consumers, those big displays give the impression that a product is in high demand. So when High Noon launched, it seemed bigger than it actually was (seems like a common thread), which quickly built brand recognition and jump started success.
I still remember when High Noon first showed up at our local regional chain of grocery stores. It came in by the pallet and got prime display space, space it maintained even as it moved slowly. Space that wasn’t normally afforded to most new spirits launches, or even established brands. Now I can’t speak for the entire country, but at least in Northern Indiana, someone at the distributor and/or Gallo was really good at making persuasive arguments that got the product front and center right away.
First Mover
There’s a risk to being the first, but there can be a huge reward if it works out. White Claw was the first hard seltzer to gain relevance and it has led the market ever since. High Noon did the same thing, essentially creating the vodka seltzer category out of thin air, which has helped it stave off competition from bigger, more established brands like Ketel One and Svedka that launched later. By the time they launched, customers had already made a habit of grabbing High Noon and were hesitant to switch within the category.
What’s In A Name?
Gallo also owns New Amsterdam vodka. It could have very easily just called its new seltzer New Amsterdam Vodka Seltzer, using the established brand’s cache. But the established brand already has its own image that can work for, but also against the new product. By creating a new brand, High Noon, Gallo was able to position the brand from scratch, giving it freedom to set its price point where it wanted and define what High Noon would be.
It also meant there wasn’t an easy substitute. High Noon is just vodka, seltzer and fruit juice, a very easily replicable formula. Generally it’s a whole lot cheaper to buy the separate ingredients and make your own. That’s why some of the established brand names have had trouble catching on, especially in the on-premise. Is the convenience really worth that much more when you can grab a bottle of vodka and a bottle of soda water and mix them together?
But there’s no High Noon vodka someone can grab to make their own (I mean there is, it’s New Amsterdam). So not only are consumers buying convenience, they’re also (falsely) buying exclusivity. High Noon seltzers are the “only” way to enjoy High Noon.
“Healthy”
Millennials and Gen Z have been trending towards being more health-conscious when it comes to drinking. (This isn’t exactly new, as generations before have embraced light beer and “skinny” drinks.) The initial launch press release for High Noon is loaded with health claims.
“High Noon answers the increasing demand for beer alternatives driven by health and ingredient-conscious consumers looking for low calorie, more sessionable beverages. Unlike the malt-based and artificially flavored offerings that are currently dominating the Hard Seltzer category, High Noon is made with real vodka, real juice, has low calories, low ABV, low sugar and gluten-free,” said Britt West, Vice President of Marketing for Gallo Spirits.
That’s a whole lot of marketing fluff. Most of those claims offer no points of differentiation from malt-based seltzers, beer, or just mixing your own dang vodka and seltzer.
Gluten-free is a point of differentiation between malt-based seltzers and beer. Those two do have gluten, so can’t be enjoyed by anyone with Celiac’s. But despite what many people try to claim with their “gluten intolerance,” people actually unable to consume gluten make up a very small part of the population.
The real juice claim does differentiate it from most malt-based seltzers, which are typically artificially-flavored. But the low sugar, low ABV, and low calorie claims are garbage. Sure, High Noon has no added sugar, but that fruit juice contributes between 2.3-2.6 grams of sugar. For reference, White Claw has 2 grams of sugar. Light beer has no sugar.
The ABV differences are pretty negligible. High Noon comes in at 4.5%, while White Claw sits at 5% and Miller Lite is at 4.2%. High Noon and White Claw both have 100 calories, while Miller Lite has 96.
While High Noon might be “healthier” than a pastry stout, it’s not any “healthier” than its direct competitors. It’s only perceived that way because facts don’t matter, just slim cans, clear liquids, and people saying it’s healthier, aka perception versus reality.
Premium Pricing
While we’re talking deceiving claims and playing to emotions, High Noon set itself up for success by pricing itself at a premium compared to malt-based seltzers. That premium pricing makes it seem like an attainable luxury and gives it the feeling of being more real, natural, and healthy, not to mention we too often mistake price with quality. What makes this even more egregious is that it’s made with New Amsterdam vodka, which is going to run you about $10.99 for a 750ml, but priced like it’s made with Ketel One or Belvedere.
(The math on this is insane. Buy a fifth of New Am and you can make nearly 19 “High Noons”. The 1.35 oz of vodka to hit that 4.5% ABV works out to $0.59 per drink. Toss in a little over an ounce of lime juice and top it off with about 9.5 ounces sparkling water and you’re easily looking at less than a dollar per drink and that’s with retailer markups already in there. Buy a 12-pack of High Noon and you’re looking at about $2.25 per can.
The Ketel comparison is apt as it has its own vodka seltzers. A 750ml bottle of Ketel One is about 2.18x more expensive than New Amsterdam, but a can of Ketel One Botanical Vodka Spritz from a 4-pack (so you’re not even getting a volume discount) is only 1.61x more expensive than High Noon. What a nice little magic trick Gallo pulled off to squeeze more margin out of a lower-end brand.)
(Ketel One Botanical Vodka Spritzes are also only 89 calories, gluten-free, and have zero sugar. They come in slim cans as well, because “healthy.”)
Pull Up a Stool
Finally, it’s undeniable that one of the smartest moves High Noon made was aligning itself with Barstool Sports in 2020. What started as a traditional media buy transitioned into a partnership that integrated it into Barstool programs and received personal support from Barstool founder Dave Portnoy.
If you’re unfamiliar with Barstool, it’s a blog and digital media company that loosely covers sports and other “stuff” that the 18-35 “bro” demographic is supposed to find interesting. It’s ostensibly an ESPN alternative but with less news and facts and more opinions, general blather and inside jokes, and smut. Think Tucker Max for sports. You know, what “dudes” supposedly talk about at the bar. It also has a highly loyal fanbase (“Stoolies”) that will buy just about anything Barstool recommends (and are the reason I’m holding back on how I really feel about Barstool).
The second High Noon inked its partnership with Barstool, it had a built in customer base of millions that would willingly drink the seltzer.
So What’s Next?
High Noon grew 30.5% in 2023, but that’s down from 85% growth in 2022. Most of that growth has come from variety packs and the launch of tequila-based seltzers. The brand just announced the release of two new flavors, a sure sign that organic growth is slowing and they’re looking for novelty to maintain growth. What we’re likely watching is High Noon nearing its peak.
While we’re in the midst of the hype, it can often feel like products will remain trendy forever. But ask your parents about Bartles & Jaymes. Or how about Mike’s Hard Lemonade? Remember when we all collectively lost our minds over hard root beer in 2015?
High Noon’s problem is that it’s targeting a demographic of drinkers who like variety, aren’t particularly brand loyal, and are willing to quickly move on to the next big thing. Give it a few years and something new will catch their eye. High Noon will churn out new flavors to maintain interest, but the growth will slow even more, and may start slipping sooner rather than later. The “healthier for you” market is also a fickle one as what’s considered healthy changes frequently.
High Noon is undoubtedly a success story that grew quickly thanks to strong industry backing, being first to market, a beneficial media partnership, and by creating a perception of being healthier, more premium, and more popular than it really is. For something that purports to be bright and sunny, it’s built on a whole lot of shadows.
What I’ve Been Enjoying Lately
Last week I was on a Caribbean cruise, hence the lack of a newsletter. While there I visited the Cayman Islands Brewery (the trip there and back is a story in its own right) and was pleasantly surprised by the Island Hopper Cold IPA and Nitro Stout I enjoyed there. Speaking of stout, it’s the unlikely choice of those in the know in the Caribbean thanks to Guinness Foreign Extra Stout (I got a chance to try the Jamaican-brewed version while in Jamaica). Honestly. I’ve always been an advocate of drinking stout in warm weather because its heat tolerance allows it to be enjoyed over a longer period of time. Warm stout is fine, warm pale lager is garbage.
I also took a tour of Hampden Estate, one of the Jamaican rum distilleries. I may write a future post on that, so for now I’ll just highly recommend taking the tour if you find yourself in the area and picking up some Rum Fire overproof rum if your local liquor store carries it.
Finally, I got a lot of reading done on the cruise. Two books I’d highly recommend are S.A. Crosby’s Razorblade Tears (his All the Sinners Bleed was one of my favorite reads last year) and Abraham Verghese’s The Covenant of Water.