USA – American multinational beverage corporation Coca-cola is deepening its presence in the alcoholic beverage category under a new partnership with Constellation brands.
The partnership will see the two companies manufacture and distribute a spirit-based line of ready-to-drink cocktails under the Fresca brand.
Fresca is a hybrid between a cocktail mixer, a soft drink and a zero-sugar, zero-calorie sparkling soda which corners a special niche in the soft-drink category.
The new Fresca Mixed will have a fuller flavored ready-to-drink range of cocktails containing alcoholic spirits.
The debut of Fresca Mixed is the latest move by the beverage giant to expand beyond its core of water, sodas, sports drinks, and teas into alcoholic beverages.
Coca-Cola first teamed up with Molson Coors in 2020 to create Topo Chico Hard Seltzer, which hit U.S. shelves earlier last year in nine states.
After a promising launch, Molson Coors announced it would roll out the beverage nationwide in 2022.
The initial success of Topo Chico has undoubtedly given Coca-Cola the confidence to enter into another deal for one of its other brands: this time its Fresca sparkling flavored soda.
Fresca’s is an ideal candidate as it has enjoyed considerable popularity with consumers lately and is cited as the Coca-Cola Company’s fastest-growing soft drink trademark, on its US portfolio.
Bringing Constellation to the table allows Coca-Cola to benefit from a partner who is knowledgeable about navigating the complex distribution system across the U.S. for alcoholic beverages.
“Our new relationship with Constellation Brands is ideal due to their consumer-focused approach to brand building, expansive distribution network and distilled distribution expertise,” notes Dan White, chief of new revenue streams, Coca-Cola North America operating unit.
A deeper presence in alcohol also could provide a much-needed revenue driver for these companies particularly now when the adult alternative beverages category is projected to grow at 17% Compound Annual Growth Rate (CAGR) in the coming three years.
Alcohol also creates another way for nonalcoholic beverage makers to get their products into the hands of additional consumers who have more options to choose from depending on their needs or preference.
In Coca-Cola’s case, a consumer could have a Coca-Cola with Coffee in the morning; a Diet Coke, Honest Tea or Powerade in the afternoon; and then a Fresca Mixed after work.
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