In a shrinking market, brewers are finding growth in an unexpected place

As traditional drinking rates plummet, beverage giants like Corona and Sierra Nevada are betting on an unexpected trend.

Big brewers are betting on smaller sizes.

As the alcohol industry continues to face declining drinking rates, brewers are searching for relief. Enter: the “pony” beer.

Coined by Molson Coors in the late 19th century, the name refers to a smaller size. While kegs are half a barrel of beer, pony kegs are just a quarter. In the late 1950s, Coors introduced the first aluminum-can pony. Since then, brewers of all kinds have never turned back.

Such a beer typically ranges from seven to nine ounces, a much smaller size than the standard 12- or 16-ounce can. It’s not just breweries who are embracing the trend. Major companies like Coca-Cola have been putting beloved products in miniature sizes for years. 

Constellation Brands—the maker behind Corona—and Coca-Cola are just two of the companies who have seen sales of these small-sized drinks grow, according to The Wall Street Journal.

Stacy Jackson, the vice president of Coca-Cola North America, told Inc. that the company’s “packaging strategy is focused on meeting people where they are.”

“Mini cans give consumers a portion size that feels just right for many occasions, from pairing with a meal to enjoying a quick refreshing break,” she added. Jackson said the cans also come at a lower price point, making the drinks more accessible to a wide range of consumers.  

The same goes for alcoholic beverages. Pony beers are establishing themselves as dominant players in the beer market.

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

Sierra Nevada, the brewer known for its legendary pale ale, introduced a small-can Pils brew last fall. The company quickly found that it was a strong seller. 

“The piece we didn’t fully appreciate is how the size would appeal more broadly to folks who want to moderate,” Ellie Preslar, Sierra Nevada’s chief growth officer, told the Journal. “I hear it from fellow parents who want to moderate. They still want a beer at night but are still parenting their kids, so it allows them to have a treat to themselves.”

Consumers who are cutting back on their alcohol consumption are part of an exponentially growing population. According to a Gallup poll, the U.S. drinking rate is at an all-time low. 

Americans’ self-reported drinking was down to 54 percent last year, the lowest number pollsters have seen over the past 90 years. 

Companies like Constellation have long been players in the small-serving-size market. Nick Fink, the company’s chief executive, told the Journal that it has been leaning more into size diversity lately. That’s partly due to the rise of GLP-1 drugs, which has boosted demand for smaller portions.

“The pony has become a fan favorite because it delivers everything people love about Miller High Life in a package that’s uniquely its own,” Chris Steele, senior marketing director for value brands at Molson Coors, told Inc. “It’s instantly recognizable and brings a sense of nostalgia and authenticity that resonates with longtime fans and new drinkers alike.”

It’s not just Coors. Constellation’s Coronitas and Modelitos have achieved great success since their debut in 1985. According to Constellation, around seven million cases of Coronita are sold each year, per the Journal.

Matt Gacioch, staff economist at the Brewers Association, told Inc. that any growth in these smaller-format containers is driven by both consumer demand and “attempts by manufacturers to capture specific consumer occasions.”

“There have been small format beers on the market for decades, but growth is happening now as consumers seek alternatives to full-size, full-strength beers at certain times,” he added.

Regarding craft beer, the shift has been minimal, he said. “Most craft breweries don’t have the equipment to suddenly shift package sizes, so any switching will come with strategic intention, not just on a ‘trial’ basis.”

And yet for craft breweries and beverage giants alike, the message from consumers is clear: In a shrinking market, the best way to grow might just be to think small.

This post originally appeared at inc.com.

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