Coca-cola to launch Topo Chico hard seltzer Hard Seltzer in selected cities of Latin America later this year. The product will appear in U.S. market in 2021. This will be the company’s first venture into alcoholic beverage in its home market since Wine Spectrum business in 1983.
Coke acquired Topo Chico in 2017. The sparkling water brand already has a huge following. This makes it a wise move on Coke’s part to capitalize on the brand’s visibility to introduce a new spiked beverage line.
The company said, “Chico Hard Seltzer is an experimental drink inspired by Topo Chico sparkling mineral water, which has been popular with many mixologists.”
A Quick glance over Timeline of the product
This is Coca-Cola’s first beverage launch in the United States. It is not the first time that the company has entered into alcoholic drinks. Coke released a canned alcoholic cocktail by the name of Lemon-Do in Japan. That product is a combination of carbonated water and Japanese Liquor Sochu. Different varieties of it has different levels of alcohol i.e., 3%, 5% and 7% alcohol by volume.
After the initial testing of the beverage on the southern Japanese island of Kyushu, it was rolled out nationwide last summer. While the company has no plans of bringing Lemon-Do to the US, this experiment gave the company success in the alcohol space.
Thus, Coca-Cola is tapping into hard seltzer and sparkling water.
Why is everyone going crazy over Hard Seltzer?
- Hard Seltzer is a highball drink containing carbonated water, alcohol and often fruit flavor.
- Hard seltzer contains no gluten, liquor, or spirits. Spiked seltzers have a fewer calories and carbohydrates compared to most beers.
According to a market research conducted by the Nielsen Company, sales of hard seltzers increased by 193% between the spring of 2018 and 2019. Hard Seltzers are convenient, easy to pack and ready to drink. They also tend to be light in alcohol and low in carbohydrates and calories.
Coca-Cola’s attempt for Revamping sales
In its recent earnings announcement, the company reported a 28% decline in net revenue. This drop is fueled by the global pandemic that halted all purchases outside home, which represents about half of the company’s revenues.
The Atlanta based company is looking to new places for profit. Sparkling water has proved to be a promising spot for Coca-Cola’s slumping sales. To refurbish its sales, the company has also added new flavors to its diet coke line and has revamped long time Fresca brand to introduce new flavors. It has also switched up Coke Zero with Coca-Cola Zero sugar.
Hard Seltzers are nutritious. They still contain empty calories with little nutritional value.
Drinking too much Hard Seltzer can also lead to alcohol poisoning and other negative health effects from excess alcohol consumption. As they are low in calories and refreshing, it is easier to end up drinking more.
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