Brewers roll out smaller packages as U.S. beer shipments decline 1.6%

Small-format beer sales grow despite overall industry decline

Brewers including Sierra Nevada and Constellation Brands are leaning into the small-format trend, rolling out 7- to 9-ounce cans and bottles that they say appeal to drinkers who want to moderate their alcohol intake, keep their beer cold longer, or simply enjoy a smaller portion. The packages, often called ponies — a term that dates to the late 19th century and has long been associated with quarter-barrel kegs — are not new. Coors introduced the first aluminum-can pony in the late 1950s, and Rolling Rock ponies were popular in the 1980s. But executives say the category is gaining fresh momentum as overall beer sales flatten.

Craig Purser, chief executive of the National Beer Wholesalers Association, told the Journal that distributors are bullish on what ponies can add. “Consumers don’t have to make a 12-ounce decision,” Purser said.

Sierra Nevada’s Preslar said the company did not fully anticipate how broadly the smaller size would appeal. “I hear it from fellow parents who want to moderate,” she said. “They still want a beer at night but are still parenting their kids, so it allows them to have a treat to themselves.” Sierra Nevada introduced its small-can Pils last fall and quickly found it to be a strong seller. The company has since decided to sell the beer in 16-can packs in select markets this fall.

Constellation Brands, the brewer of Modelo and Corona, has marketed small-format beers for more than a decade. Its Coronita, a 7-ounce version of Corona, sells about seven million cases a year, according to the company. Constellation is now putting its Pacifico brand into 7-ounce containers. CEO Nick Fink said the company is “leaning in” to the small-beer category and sees the use of GLP-1 drugs for weight loss as an opportunity to expand. “I think it’s a particularly exciting play for us,” Fink said.

Osvaldo De La Garza, a 32-year-old Tampa-area resident who keeps his poolside cooler stocked with Coronitas, told the Journal he has been drinking the 7-ounce beers for about two years and does not plan to switch back. “The little ones are perfect,” he said. “I take them everywhere, even a little get-together.”

The industry is also promoting small formats through limited-edition releases. Earlier this year, Bud Light released a Post Malone-branded miniature can. Molson Coors has seen steady sales growth for its Miller High Life pony bottles over the past five years.

Greg McLeod, president of Florida-based beverage distributor Pepin Distributing, said he has seen sales of smaller beers outpace many other package sizes. In hot and humid Florida, he said, residents like the smaller container because they can put it on ice and consume it quickly while it stays cold. McLeod recalled doing bar promotions around pony beers in the Washington, D.C., area in the 1990s and said those promotions are beginning to return.

Despite the enthusiasm, small-format beers still account for a tiny fraction of the overall beer market, according to Bump Williams data cited by the Journal. The broader industry faces headwinds: domestic beer shipments through April were down 1.6% compared with the same period last year. The week of July 4, typically a peak sales period, sees beer sales about 37% above average, according to the Beer Institute, a trade group. Brewers say ponies could help capture a meaningful share of that summer demand.