Atlanta and Victor, NY. The Coca-Cola Company has signed a brand authorisation agreement with Constellation Brands Inc. to launch Fresca Mixed, a line of full-flavoured, spirit-based ready-to-drink (RTD) cocktails in the United States.
Constellation Brands will manufacture, market, and distribute Coca-Cola’s new Fresca mixed alcoholic cocktails, which will launch this year in the United States.
Dan White, chief of New Revenue Streams, Coca-Cola North America Operating Unit (NAOU) said: “Constellation’s consumer-focused approach, entrepreneurial spirit, expansive distribution network and distilled distribution expertise make them an ideal choice to bring Fresca Mixed to market.”
Adult Alternative Beverages, including ready-to-drink cocktails, represents nearly an $8bn segment projected to grow at a 15-17% CAGR over the next three years, with trusted consumer brands commanding a significant share of the market, according to Constellation Brands market research.
Fresca- a cocktail mixer, a soft drink, and a zero-calorie, zero-sugar sparkling soda water- is experiencing a surge in popularity with consumers and is currently the fastest-growing soft drink trademark in The Coca-Cola Company’s U.S. portfolio (source: Nielsen AMC YTD 11-27-21).
“The Coca-Cola Company’s Fresca brand is not only trusted by consumers, but also directly delivers on consumer preferences for refreshment, flavour, and convenience – attributes that also play well within beverage alcohol and where we can leverage our expertise,” said Constellation president and CEO Bill Newlands.
Coca-Cola’s New Revenue Streams (NRS) group, formerly known as Venturing and Emerging Brands (VEB), supports Coke’s goal to become a total beverage company with drink options for all occasions and need states. “As we emerge from the pandemic and look to long-term growth, we recognize that we must evolve our business models to address the entire beverage experience,” White explained. “We created New Revenue Streams to do just that – to identify a broader range of revenue opportunities for the company beyond our traditional ready-to-drink beverage products.”
In 2018, Coca-Cola entered the alcohol category in Japan with the launch of Lemon-Dou. In 2020, the company announced a relationship with Molson Coors, which manufactures, markets and distributes Topo Chico Hard Seltzer in the United States. Coca-Cola said that the initial success of Topo Chico Hard Seltzer shows that consumers are excited to see recognizable beverage brands they already enjoy with alcohol enter the ready-to-drink alcohol space.
“Third-party relationships with licensed alcohol manufacturers show how we are following the consumer, taking an agile, experimentative approach to expanding our brands’ reach based on the evolving landscape,” White added. “The flavoured alcohol beverage category is unique as there are synergies with our existing business models in various markets around the world.”
