Cutwater is becoming a $1 billion brand by doing the opposite of what everyone else in alcohol is doing

Cutwater, a rapidly growing brand in the spirits industry, is on track to reach a value of $1 billion in annual sales. The ready-to-drink canned cocktails, available in numerous flavors of vodka, tequila, whiskey, gin, and rum, have experienced a triple-digit revenue growth, making Cutwater a significant driver of growth for its parent company, Anheuser-Busch InBev (AB InBev).

In fact, during the second quarter of this year, Cutwater became the second-largest contributor to overall revenue growth for AB InBev, the world's largest brewer. AB InBev's CEO, Michel Doukeris, attributed this growth to the performance of Cutwater, stating that the brand was "inexistent six, seven years ago and is moving towards becoming a $1 billion brand and is the fastest growing brand in the spirits industry in the U.S., now a top six or seven, overall in size brand in the spirits industry."

This remarkable rise to prominence began as a hobby for co-founder and head brewer Yuseff Cherney in 2007, who initially distilled vodka, gin, rum, and whiskey using an old beer fermenter. The project evolved into Ballast Point Spirits, which separated from Ballast Point in 2015 when the beer brand was sold for $1 billion to Constellation.

In 2018, Cutwater Spirits was subsequently acquired by AB InBev. Amidst a surge of non-alcoholic beverages and mocktails, Cutwater has differentiated itself by offering drinks with a higher alcohol content. Each 12-ounce can contains between 7 and 13 percent alcohol, with most flavors exceeding 10 percent. The brand's boldness and potent formulas have been met with both praise and controversy, with some describing Cutwater as "chaotic" and "getting everyone wasted."