Coca-Cola brings another brand into beverage alcohol

The Coca-Cola Company has announced a new agreement with Molson Coors Beverage Company to bring its best-selling juice brand Simply into the into the fast-growing flavored alcoholic beverage category.

The development follows Coca-Cola’s agreement with alcohol company Constellation Brands earlier this month to bring the Fresca brand into beverage alcohol in the US.

Simply Spiked Lemonade will launch this summer in the US, containing 5% alcohol by volume. Coca‑Cola’s North America Operating Unit will sell beverage base to Molson Coors, which will produce, distribute and market the premium, ready-to-drink brand.

Last year, the two companies collaborated on the launch of Topo Chico Hard Seltzer, which already has staked out a position as a top-five player in the hard seltzer category. The brand has expanded distribution nationally this month and debuted Topo Chico Ranch Water Hard Seltzer in certain markets.

“Over the past two years, we’ve seen success by shaking up existing categories with new brands that have clear, compelling points of difference, like Topo Chico Hard Seltzer, Vizzy Hard Seltzer and ZOA Energy Drink,” said Michelle St. Jacques, chief marketing officer, Molson Coors.

“Now, we have a huge opportunity to leverage the power of Simply—a brand known for great flavor—to disrupt the full-flavor alcohol segment in a way that’s never been done before.”

Simply, a growing billion-dollar brand, is the Coca‑Cola Company’s second-largest brand based on net revenue in the US, behind Coca‑Cola. It will enter an evolving beverage alcohol space in which flavored alcohol beverages posted 10 per cent growth in 2021 to become a nearly $2 billion (£1.5bn) segment as more consumers turn to high-flavor beverages without high sugar and artificial flavors.

“The Coca‑Cola Company and Molson Coors have a thriving relationship in North America,” said Dan White, chief of new revenue streams, Coca‑Cola North America Operating Unit.

“The proof is in the success of Topo Chico Hard Seltzer’s national expansion and the introduction of Topo Chico Hard Seltzer Ranch Water. With this momentum, we are excited to expand our relationship with products inspired by another one of our most valuable brands: Simply. We believe people will be excited to try this delicious beverage when it arrives on shelves later this year.”

In 2018, Coca-Cola entered the alcohol category in Japan with the launch of Lemon-Dou, and its new revenue streams group supports the firm’s journey to become a total beverage company with drink options for all occasions and need states.