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We’ve started noticing more small beers — true small beers — popping up in taprooms across the country. Not session IPAs. Or watered down macro lagers, but clean, intentional, sub-4% ABV beers that still bring full flavor and a sense of craft.

Some are Czech-inspired. Others are hopped like a West Coast Pale Ale. And a lot lean into being… beer-flavored beer, (only smaller).

In any case, the pitch is clear:

– More crushable means you can drink more in one sitting (the most important value prop)

– Less alcohol means a lessened hangover

– Lower calories (presumably)

– A more well rounded flavor than NA beer

– Cheaper to produce

– Tailor-made for day drinking moderation (which can open up more occasions)

Whatever your preferred benefit, we think there’s something here and expect to see this segment grow.

And as the beer category continues to stretch in two directions — toward high-gravity bombs on one end and fully non-alc offerings on the other — this low-but-not-zero middle ground could become an interesting place to play.

Not just for consumers, but for brewers looking to stretch their brand, sharpen their positioning or simply sell more beer to folks who want to hang around a little longer.

(Above): "Light & Tight," "Beer for a better tomorrow," "Lo-Cal IPA," Middy IPA" — note how different brands highlight different value props to reach specific customers and occasions.

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What Exactly Are We Talking About Here?

We’re calling these “small beers” intentionally — not to define a style, but to capture the space: Flavorful craft beers below about 4% ABV.

If we can borrow a term from abroad — Australian’s call these “mid-strength beers.” They typically clock in between 3 and 4.5% ABV. That’s roughly the zone we’re talking about here, though the term hasn’t quite caught on in the U.S. market. 

FWIW, I asked a handful of people in my life what they thought a mid-strength beer could be and most of them assumed it was a beer in the 5% range. Take that anecdote as you will. 

Anyway, let’s define small beer loosely as being:

– Below 4% ABV (sometimes even coming in below 3%)

– Still full-flavored (compared to mass market lager and NA beer)

– Designed with intention — not just a low-alcohol afterthought

– Low calorie count 

– Built expressly for moderation 

These aren’t NA beers. And they’re not what most people think of when they hear “session” — a term that should probably be retired (more on this in a sec). 

Instead, small beer offers a third path: Enough alcohol to feel and taste like a “real beer,” but low enough to keep your wits about you. You can drink a few and still drive home — or even have one on your lunch break and make it through that 3pm meeting.

Why This Matters Right Now

This small beer middle ground might not be commanding headlines (yet), but it’s quietly solving a set of problems — for drinkers and breweries alike.

– It supports longer, more social drinking occasions: Backyard hangs, taproom visits, patio days, festivals, even casual “walking beers” … people want options that let them pace themselves. These aren’t hype-y releases, they’re fridge stockers.

– They work well in the taproom: Small beers allow people to drink more on-premise, and for longer. This might be another pacer option, similar to Hop Water. 

– They’re easy to position: These aren’t wellness beers, and they’re not functional. But they do signal moderation without making a big deal out of it.

– They give you brand-building latitude: A small beer can certainly round out your flagship portfolio, but you could also consider building more of a standalone brand, assuming your Architecture calls for it.  

And most importantly…

– They invite new drinkers in: Not everyone wants an 7% IPA. A flavorful, approachable 3.7% Pale or Lager can help expand your audience — especially for folks looking to moderate without giving up beer entirely.

A note here: Most of those drinkers aren’t sober — they’re moderating. The vast majority of NA drinkers still consume alcohol from time to time (up to 94% (!!!) according to NIQ data). They’re not opting out entirely — they’re just opting for more balance. And small beer gives them a way to do that without leaving beer behind.

Positioning Pitfalls: Don’t Call It “Session”

“Session” is a word that may still resonate with a few brewers, but most drinkers either don’t know what it means — or associate it with forgettable beer. This term had its moment (circa 2015?), but is definitely on the downslide for a variety of reasons:

– It’s overused and under-defined: Originally applied to low-ABV British ales, it was co-opted by Americans to cover anything roughly under 5%. But that number has been fudged so much that it’s now meaningless

– It didn’t deliver: This term promises full flavor, just lighter. But session beers tend to taste thin.

– It’s been outclassed by more au currant terms: Which sounds more appealing? A “session pale” or a “light,” “crisp,” crushable,” “easy” one?

So what do we call these? 

– “Small beer” has a lot of charm, though it will take some segment building to work (already happening from a handful of early movers). (Spoiler alert, This is CODO’s shorthand for this segment.)

– “Light” is tricky — it comes with decades of baggage, especially in craft circles. Most drinkers already associate “light” with domestic macros, not full-flavored, craft-brewed moderation. (Read our thoughts on light beer extensions here.) And besides — these aren’t light beers. They’re lighter than light. Which makes positioning even more nuanced. You have to explain that this isn’t “just a lighter version of something else” — it’s its own thing, with its own use case.

– “Low ABV” is clear but maybe too technical? Without more context, will someone see a 3.7% beer and know that’s a value prop?

– “Mid-strength” doesn’t have an intuitive meaning in the U.S., so we’re not convinced this is the term — but it’s a top contender. We’re starting to see early adopters (like Saranac) lean into it explicitly, which could help shape consumer understanding over time.

– A clever lifestyle-oriented name and clear ABV callout might be your best bet.

Wherever you land, this isn’t something you want to market with brewer esoterica (three C hops, specific yeast strains, etc.). Make it inviting. Make it self-explanatory. And give people a clear reason for why they need to buy your small beer. 

Brand Architecture + Portfolio Fit

Small beers might not carry the same weight as your core IPA or lager — but this is what makes them interesting from a Brand Architecture standpoint. These beers can live in your main portfolio as a (really) low ABV option, or be positioned more on their own as a specific lifestyle play. 

Either path can work — if you approach it with intent.

A few strategic considerations:

Could this be a new flagship or should it live as a Sub / Endorsed Brand?

A small beer could certainly live under your parent brand as a flagship, provided your overall positioning supports it. But you might also consider the benefits of a targeted Sub or Endorsed Brand if you see a compelling reason for doing so. 

Give the Beverage Extension Assessment Tool (B.E.A.T.) a spin to quickly see how you could position and brand this new product.
 

Can you name and position it in a way that embraces the low ABV lifestyle?

Our favorite brands in this space are already doing this: Dad Strength, Small Beer (The Hop WTR of this segment), So-Lo, etc.

There’s an opportunity here to own an occasion. Sunday beer. Rec League. Afternoon delight. Brunch.

Consider how this beer could fit into someone’s life and unlock new parts of the day.

Read more about Lifestyle Brands here.

Go beyond the value prop

Building on that previous point, small beers aren’t just about selling less alcohol, or at least they shouldn’t be. They offer something easy, sociable and imminently drinkable. Make this feel like fun choice rather than a compromise. 

I actually think the Great Taste, Less Filling tagline is instructive here. Small beers taste great. And you can drink more of them. In this way, you can stack value props.

Revisit our Comma case study for a great example of a brand that transcends being a product and offers agency and its own built in occasion.

(Above): Love this positioning example from Dad Strength. 

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Challenges & Considerations

As promising as this space is, there are a few potential hurdles to keep in mind:

Perceived value: Less (or no) alcohol can translate to “less worth it” for some drinkers. i.e. Why is this 6-pk the same price as your flagship IPA? Your pricing and messaging and overall brand presentation have to work harder here.

It will require category building: I actually think small beer’s value prop is clear enough. This is still a new segment. And like cannabis beverages a few years ago, it may require time, energy, and capital to build the category alongside your brand.

(Above): Small Beer is a treasure trove of fun lines and value prop-led marketing. TLDR; drink this when you don't want to get hammered and make an ass of yourself.

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Wrapping up

How big an opportunity is this segment? Honestly — hard to say.

I don’t see small beers unseating IPA as the de facto craft beer style, or making a noticeable dent in Athletic’s incredible momentum in the NA space. 

But these do speak to something real: A growing number of drinkers want to pace themselves. And drink casually — without waking up wrecked the next day. And they want to do this without sacrificing flavor or feeling like they’re opting out.

It’s function without the functional pseudo science baggage. 

That’s the opportunity here: Expanding the way people engage with your brand. It’s about offering a new kind of utility — a beer that fits more lifestyles and occasions.

Our long-term bet isn’t on the death of beverage alcohol — and it’s probably not on a return to its former glory either. It’s on moderation. A steady-state future where people drink less, but better. Where flavor, intention, and pacing win out over ABV arms races.

This spans generations. Younger consumers who never developed the same alcohol habits. And older drinkers (like yours truly) who want to keep enjoying beer — just on their own terms.

No one’s asking for “session beer” today. But they are looking for lower ABV options. 

And small beers, if positioned well, could answer that ask beautifully.