The origin of the nickname "gay water" for vodka soda.

• Some gay men have made the vodka soda their preferred drink and a cultural representation.
• The modern LGBTQ+ zeitgeist has attracted the attention of local bar owners and canned cocktail makers, among others.

Last year, Justin Ruka, a 33-year-old man from Orlando, met a flight attendant at a gay bar. A month later, he recognized a familiar face on an Alaska Airlines flight to San Francisco.

Ruka's tray contained two tiny bottles of Tito's vodka, a can of seltzer water, and a lime flavoring packet, which the flight attendant quickly deduced was a vodka soda.

"Ruka remarked that his drink was a cliche, but it was a great way to start the trip."

Soda water and vodka have been a popular drink among gay men for a long time, and have become a cultural touchpoint and inside joke within the LGBTQ+ community.

Entrepreneurs have seized business opportunities in the "gay water" market, from local bars to canned cocktails.

Several gay men revealed to CNBC that they prefer vodka water as their preferred drink because it has low sugar and calorie content. Additionally, it can lead to fewer hangovers compared to other options like tequila or gin, they stated. Some of them add a lime wedge or a splash of cranberry juice to enhance the taste.

Despite a lack of recent data on LGBTQ+ consumers' specific alcohol preferences, some studies suggest that they spend more on the category overall. However, anecdotal evidence and a visit to a gay bar reveal the popularity of certain drinks.

"Lucas Hilderbrand, a film and media studies professor at the University of California, Irvine, said that gay drinking establishments are commonplace and documented in his 2023 book 'The Bars Are Ours.'"

The Urban Dictionary lists "gay water" as a slang term for vodka soda with a lemon or lime on the side, which is considered a "perfect gateway to a good buzz and a small waistline" for queer men.

The vodka soda has been the center of numerous memes and jokes on social media platforms such as Instagram and X. One of those came from Houston-based lawyer Jeff Watters, who referred to the drink as the "gay water" of the nighttime in a post on X. Its daytime equivalent, he stated, is Diet .

During a Pride Month event hosted at a typically "straight" venue, Watters' friend remarked that his vodka soda might be stronger at an LGBTQ+ bar.

Hilderbrand stated that the club soda in the drink is a successor to tonic water, which was popular in these establishments before 2000. Additionally, he said that sparkling water has long been associated with the gay community, as seen in the 1980s cult classic "Heathers," where a bottle of mineral water is left as a clue to persuade police that two dead football players were lovers.

Vodka has long been a popular spirit among the community, partly due to marketing efforts by producers targeting the LGBTQ+ community, Hilderbrand stated.

'Bread and butter' — spiked edition

In Lawrence, Kansas, the most popular drink at Henry's Upstairs is the cocktail version of Gay Ice Water.

A keg of premixed drink, consisting of lemongrass vodka, chamomile tea-infused vermouth, sherry wine, elderflower and key lime acid, is available for $9. The drink is served over ice and topped with homemade tonic water.

"Mary Holt, owner of the establishment, stated that the vodka soda was elevated and it garnered immense love from the customers."

When Holt takes Gay Ice Water kegs to external events, she said, its name requires Kansans to acknowledge queer people at a time when LGBTQ+ rights have increasingly become a political football.

Holt stated that individuals must "express their sexual orientation."

In renowned New York City gay bars owned by Eric Einstein, such as Pieces and Playhouse, the vodka soda is the most popular drink, accounting for approximately 3 out of every 10 orders, he stated.

"It's just so commonplace," Einstein said. "It's sort of like asking for a pack of gum at a bodega."

According to Einstein, having a preference for club soda can also benefit businesses. When a customer orders only soda water with their alcohol, the bar saves money because no flavoring syrup is needed for the mixer.

When buying for a group of friends, vodka soda is a simple and universally liked refreshment for Brendan Oudekerk. Bartenders at the LGBTQ+ venues he frequents in Washington, D.C., know his "Rose Kennedy" order, which is a classic vodka soda with a splash of cranberry juice.

"The 34-year-old financial analyst stated that if he were a bartender at a gay bar, he would simply prepare vodka sodas for customers, as that is what they typically desire. Despite its simplicity, he emphasized that it was an accurate representation of the situation."

Canned cocktails to candles

Canned cocktails, which are gaining popularity, have been formulated by LGBTQ+ entrepreneurs to cater to their community's preference for vodka sodas.

This year, World of Wonder, the production company behind "RuPaul's Drag Race," released a "vodka soda citrus" canned cocktail in conjunction with the 16th season of the Emmy Award-winning reality program, where drag queens compete against each other.

Tom Campbell, head of development for World of Wonder and executive producer of the show, stated that the event is commonly referred to as the "gay Super Bowl."

The House of Love arm of the company provided samples at viewing parties for the show across the country, which led to a market-by-market strategy where the team established a retail presence in communities with gay bars hosting these events, as stated by Campbell.

The growing prevalence of drag brunches in communities that haven't typically been deemed queer havens around the country create new entry points for the product, which can also be purchased online. Contestants on the show serve as "built in" influencers for the product.

Campbell stated that non-LGBTQ+ consumers often follow the community's trends without realizing it, which can increase the popularity of a brand or drink among this group.

"Our show is at the forefront of what people are thinking, saying, wearing, doing, and drinking."

For Gay Water, a startup that offers canned cocktail variations of vodka soda, retail is a crucial aspect of the business. Although founder Spencer Hoddeson acknowledged that the name may not be familiar to those outside the LGBTQ+ community, he emphasized the importance of "creating conversations" through an unapologetically queer brand.

"Hoddeson posed a question: "While representation in media has been a significant issue within our community, have we considered the importance of representation in our everyday physical spaces, such as grocery and liquor stores?""

Hoddeson has placed its product on the shelves of Total Wine & More and BevMo since its founding in July. Additionally, Gay Water can be delivered within the New York City area through Gopuff or shipped to most states.

Hoddeson stated that he has encountered difficulties in attracting investors who view the LGBTQ+ market as uncertain due to the controversy surrounding 's partnership with a transgender influencer, which caused a stir in the alcohol and advertising sectors.

He stated that the business has experienced a "halo effect" due to being a queer-run brand. This is evident through allies showing their support by purchasing the product, as it is linked to the community.

Canned vodka sodas are becoming increasingly popular, with brands such as Kylie Jenner's Sprinter line and Boston Beer's Truly brand joining the trend. However, Hoddeson believes that consumers will choose products that have a socially conscious mission behind them. For Gay Water, this means donating products to fundraisers for LGBTQ+ causes. Neither Sprinter nor Boston Beer responded to CNBC's requests for comment.

Both the House of Love and Gay Water products have 4% alcohol content. The former's vodka soda citrus is 100 calories per can, while Gay Water contains 80.

The Gay Bar Shop, a specialty retailer, is not the only business focused on the LGBTQ+ community that is profiting from the cultural appeal of beverages. The store sells an 11-ounce, $49 candle that smells like a vodka soda with a lime garnish.

Instead of spending $12 at a crowded bar, enjoy the scent of the greatest drink ever created by lighting this candle.

Here, queer and drinking beer

Although there was much excitement, Victor Tran still couldn't bring himself to enjoy the taste of the vodka soda, causing him to steer clear of the crowd.

A 24-year-old resident of Virginia stated that he is receptive to a variety of beverages. He commences his typical night out with a blend of sugar-free Red Bull and vodka, he declared. Subsequently, he transitions to beer.

""Beer can be perceived as 'manly' because it resembles a frat drink. However, we should also make beer enjoyable and feminine," Tran stated."

Spencer Hoddeson, the founder of Gay Water, was previously employed by NBCUniversal, which owns CNBC.