Coca Cola has decided to expand further in the #beverages space by announcing the launch of their brand Topo Chico in the alcohol segment.
The #brand is being extended into the hard seltzer segment, and will be launched in three flavours in the markets of UK and Ireland in Nov, just ahead of the festive period. It will then be extended to rest of Europe and USA in 2021.
In 2017, The Coca-Cola Company purchased this brand for $220 million and popularized it across #USA as a sparkling mineral water brand with a cult following.
This range was launched in Latin America in September and it helped the core brand gain momentum as a cocktail mixer.
Strategically, it makes sense for Coca Cola to enter this segment because:
1. It helps in diversifying the portfolio and reducing the risk of relying too much on the carbonated beverages sales.
2. The sale of hard seltzer has been increasing since the past few years. Currently valued at $4.5bn, the hard seltzer market is predicted to be worth $14.5bn by 2027 according to Nielsen.
3. It gives a solid entry to the company into the lucrative channel of bars and restaurants, where margins can be much higher.