USA – Coca-Cola has announced the acquisition of the fast-growing Topo Chico premium sparkling water as part of its emerging brands in the beverages industry.
According to Buzzfeed, the purchase of the popular salty water brand, which has dominated the market for imported sparkling water, was US$220 million.
“Topo Chico has a very loyal base of Hispanic consumers, who grew up with the brand in the US and Mexico, and over the years it has even garnered a massive millennial following” Kellam Mattie, the VP of marketing and innovation for Coke’s “Venturing & Emerging Brands” unit told FoodBev Media.
Coca-Cola also said that, ”Our two brands have a 90-plus-year connection … This link is both exciting and historically significant. So our job is to retain and enhance this connection by making Topo Chico relevant to more people.”’
When asked about the deal made with Coca-Cola, the VP of Coca-Cola’s emerging brands wing, Matt Hughes, explained, “Our goal now is to extend its reach while preserving its heritage.”
The Coca-Cola system has a long history with the brand as its first bottle of Coca-Cola in Mexico was bottled at a Topo Chico facility in the 1920s.
Arca Continental, Coke’s second-largest bottling partner in Latin America, has also bottled and distributed Topo Chico for the last 30 years.
“As we accelerate our evolution to a total beverage company, we’re investing in brands that are on trend. Topo Chico is a fast-growing brand with a lot of passion behind it and growth runway ahead.
The premium, imported sparkling water category is growing double-digits, and Topo Chico has proven itself in a significant market – Texas – where it’s leading the category,” said Hughes.
Gerardo Galvan, GM of Interex (U.S. subsidiary of Arca), also mentioned that, “Topo Chico is, and has always been, a unique and authentic brand without pretending to be more than what it truly is.
This has given the brand credibility. We didn’t want to be complicated; our messages have been very clear and simple.
We constantly want to get to know our consumers and give them what they desire and expect from Topo Chico. This has created a passionate following for the brand in cities like Austin.
It has also been very important to create a sense of connection with our consumers; we follow certain guidelines that align well with the brand: authentic, classic, carefree, laid back, cool without trying too hard, unpretentious, consistent, reliable, local and home-grown.”