Health Halos or Drinkability? Evaluating What Is Behind Hard Seltzer's Meteoric Growth

Abstract

The halo effect, or the tendency to judge one product characteristic based on other product characteristics, is prevalent in food purchasing decisions. However, its effects have remained understudied in beverage markets. Understanding potential health halos in alcohol markets is especially important given the many adverse public health outcomes associated with excessive consumption. This study uses primary data from a panel of 1,203 U.S. hard seltzer consumers to explore two potential halo effects in the alcohol marketplace. The experimental design isolates the impact of organic labeling on alcoholic beverages and compares the perceived healthiness of hard seltzer relative to beer. The results provide little evidence of these halo effects. Rather, perceived taste and drinkability appear to explain much of the recent growth in the hard seltzer market.