Rising RTD Player Stateside Sees Hard Tea Drive Expansion
March 22, 2024Within an increasingly crowded market for RTDs, the portfolio from Philadelphia’s Stateside Vodka is emerging as a standout. The company’s largest brand is Surfside Iced Tea & Vodka, a spirits-based spin on a familiar flavor profile—hard iced tea—that’s largely been the province of malt-based drinks up to now. Surfside’s sister brand Stateside Vodka Soda, a fruit-flavored lineup, is also gaining traction.
Last year, Surfside ($10 a four-pack of 355-ml. cans) reached 1.24 million cases, according to Impact Databank, adding more than one million cases over 2022. The brand’s non-carbonated mix of iced tea and vodka, launched in 2021, was an early hit with consumers particularly in the Philadelphia region and in beach towns along the New Jersey coast. “2022 was really the first year we had Surfside in the trade at all,” Clement Pappas, founder and CEO, told SND. “We thought we had a good product, but you never know what’s going to happen when you put it out in the market. Then we just were absolutely blasted with demand in 2022 and 2023.”
“Surfside vodka iced tea and lemonade products exploded into our market in 2023,” added Tim Holden, chairman of the Pennsylvania Liquor Control Board (PLCB). “Their standard vodka and iced tea four-pack became the top choice for retail customers in the second- and third-quarters of 2023, outpacing the High Noon variety pack in unit sales for several weeks. That encourages us to expand our selections.” Surfside garnered early interest after striking a partnership with the Philadelphia Phillies, and from there saw the Jersey Shore expand into a big market as well, Pappas noted.
While Iced Tea & Vodka is the brand’s flagship, Surfside also comes in Peach Tea & Vodka, Lemonade & Vodka, and Iced Tea & Lemonade & Vodka, all at 4.5% abv and 100 calories per 12-ounce can. In the near future the company is planning to expand its lemonade line with additional flavors.
Stateside Vodka Sodas are also growing rapidly, more than doubling to reach 400,000 cases last year, according to Impact Databank. “Stateside Vodka Soda grew over two times last year, so if we didn’t have Surfside, we’d be raving about how great the vodka sodas are doing,” said Pappas.
Looking ahead, Pappas sees additional growth in Pennsylvania and New Jersey but also strong potential in newer markets like Virginia and New England. “We’re in the northern New England states, New Hampshire, Vermont, and Maine,” he said. “They all allow convenience sales, so we can be in the cooler. We’re already working with some convenience partners there. We think that can drive a lot of trial.”—Daniel Marsteller
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