Coca-Cola Will Make A Topo Chico Hard Seltzer

TOPLINE

Coca-Cola will enter the hard seltzer market with Topo Chico in 2021 as the low-calorie, low-sugar alcohol category’s volume grew by 200% in 2019 and is dominated by just two brands.

KEY FACTS

Big Number

$3 billion. That’s hard seltzer total sales by U.S. retailers in the 52 weeks leading up to July 11—with the category growing 241% in that period—according to Bump Williams Consulting via Wall Street Journal.

Surprising Fact

Less than 200 of Coca-Cola’s 400 brands account for 98% of the beverage powerhouse’s revenue, per CNBC.

Key Background

In 2019, hard seltzer grew 200% in volume in the U.S. with Mark Anthony Brands’ White Claw and Boston Beer’s Truly holding most of the market share, per CNBC. Other alcohol giants like Constellation Brands, the parent of Corona, and Anheuser-Busch InBev, entered the market earlier this year with Corona Hard Seltzer and Bud Light Seltzer.

Tangent

In 2018, Coca-Cola launched a bubbly lemony alcohol drink called Lemon-Do in Japan. The drink is made with Japanese grain alcohol shochu, and comes in variations with 3%, 5% and 7% alcohol by volume, according to Food Navigator Asia. It’s the company’s only other alcoholic product globally.

Further Reading

Coke Japan’s alco-pop Lemon-Do to go nationwide after test launch (Food Navigator Asia)

Coca-Cola to Launch Hard Seltzer Drink (Wall Street Journal)

Coca-Cola to enter hard seltzer market through Topo Chico brand (CNBC)

Coca-Cola earnings fall 33%, but company sees improving demand as lockdowns ease (CNBC)