Coca Cola And Coors Claw Their Way Into The U.S. Hard Seltzer Market

Words by Luhar Singh

Coca Cola And Coors Claw Their Way Into The U.S. Hard Seltzer Market
Coca Cola And Coors Claw Their Way Into The U.S. Hard Seltzer Market

Call it a marriage made in heaven. Food and beverage giant Coca-Cola is partnering with Molson Coors for the U.S. launch of its Topo Chico hard seltzer.

The company’s entry into the alcoholic beverages market comes at a time when demand for hard seltzer is continuing to surge for a third year straight, making hard seltzer the fastest growing alcoholic beverage category. In 2019 alone, the volume of hard seltzer sales grew by more than 200 percent, according to a recent report by IWSR

So far, the market has primarily been dominated by White Claw, which is owned by Mark Anthony Brands, the brewer of Mike’s Hard Lemonade. The company reportedly saw its sales jump by 250 percent in 2019 compared to the year before, surpassing $1.5 billion in revenue. 

While Coke’s Topo Chico seltzer may have a long way to catch up with White Claw, this is not the company’s first foray in the alcoholic beverage market. Coke made its debut in the wine business in 1977 when it acquired Taylor Wines of New York, according to the New York Times. The company then went onto create a subsidiary called Wine Spectrum under which it sold wines from Taylor, Sterling Vineyards and Monterey Vineyard. Later in 1983, the subsidiary was sold to Joseph E. Seagram & Sons Inc. for $200 million.

The partnership also represents a unique opportunity for Molson Coors since the company has been making efforts in recent times to grow its business beyond selling beer as demand and consumption has reduced over the years. In October 2019, the company even went on to drop “Brewing Co.” from its name, CNBC reported. 

As part of the deal, Molson Coors will oversee marketing efforts and sales and distribution in the U.S., whereas production and packaging will be handled by a third party. The drink will be packaged in a pack of 12 and will sell in four flavors:  Tangy Lemon Lime, Exotic Pineapple, Strawberry Guava and Tropical Mango.

MUST READS
No more posts to show, explore other topics: