How about a refreshing story? One of the largest beverage companies in the world is venturing into the hard seltzer business, a category of drinks gaining traction.
From soft to hard drinks
Coca-Cola is set to launch a brand new beverage category under popular brand it just recently acquired, Topo Chico. It will be first sold to some cities in Latin America. It will then enter the US market by next year. More details will be shared by the company nearing the actual product launch.
“The Coca-Cola Company is committed to exploring new products in dynamic beverage categories, including hard seltzer. Topo Chico Hard Seltzer is an experimental drink inspired by Topo Chico sparkling mineral water, which has been popular with many mixologists,” the company’s official announcement stated.
Coca-Cola to enter hard seltzer market through Topo Chico brand https://t.co/3w6Z0rvQUO
— CNBC (@CNBC) July 30, 2020
Coca-Cola Expanding portfolio
The giant beverage company has brought Topo Chico, known for its massively popular sparkling water, last 2017 for $220 million. James Quincey, chief executive officer for Coca-Cola, said that Topo Chico is gaining more popularity. CNBC noted that this will be Coca-Cola’s first alcoholic drink to be sold since 1983.
The hard seltzer business is now getting crowded with different companies trying to enter the market. Just this May, a Belgian multinational beverage company Anheuser-Busch InBev announced that its newest Social Club Seltzer, a hard seltzer promoted as premium drink that comes in three flavors including Old Fashioned and Citrus Gimlet. Meanwhile, Mark Anthony Brands-owned White Claw and Boston Beer’s Truly still dominate the market share.
A Nielsen report said on 2018’s start, only 10 brands of the hard seltzer are being sold. And by 2019, there are 26 brands of that beverage category. Per Nielsen’s report, “More than 65 brands are now fighting for consumers’ attention and purchase.”
The survey measurement company also noted that within 15 weeks leading up to June 13, sales of hard seltzer drinks are quadrupling year after year.
Telling CNN Business, Nielsen’s VP of Beverage Alcohol Danelle Kosmal, with more demand for the product, small market share won’t matter. “Within the hugely successful and growing hard seltzer segment, new and ‘old’ brands alike can succeed even if their market share is relatively small or declining because the total pool of sales of hard seltzer within US retail is growing at such a high rate, Kosmal said. “With new launch after launch, manufacturers may lose market share but continue growing their sales.”