Leading beverage alcohol company Constellation Brands said it has entered into a brand authorization agreement with the Coca-Cola Company to bring the Fresca brand into beverage alcohol.
Constellation Brands will manufacture, market, and distribute new Fresca Mixed, a new, distinctive line of spirit-based, ready-to-drink cocktails, which will launch this year in the US.
“The Coca-Cola Company’s Fresca brand is not only trusted by consumers, but also directly delivers on consumer preferences for refreshment, flavor, and convenience – attributes that also play well within beverage alcohol and where we can leverage our expertise,” said Bill Newlands, Constellation’s president and chief executive officer.
The company said, citing its market research, that Adult Alternative Beverages, including ready-to-drink cocktails, represents nearly an $8 billion (£5.9bn) segment projected to grow at a 15-17 percent CAGR over the next three years, with trusted consumer brands commanding a significant share of the market.
Fresca is experiencing a surge in popularity with consumers and is currently the fastest growing soft drink trademark in the Coca-Cola Company’s US portfolio (Nielsen AMC YTD 11-27-21).
“The Coca-Cola Company and Constellation Brands have a shared passion for building some of the world’s most loved brands and for building best-in-class beverage experiences,” Dan White, chief of new revenue streams, Coca-Cola North America Operating Unit, added.
“Our new relationship with Constellation Brands is ideal due to their consumer-focused approach to brand building, expansive distribution network, and distilled distribution expertise. With the launch of Fresca Mixed by Constellation, people will have an entirely new way to enjoy the taste of Fresca, now mixed with real spirits.”
Coca-Cola’s new revenue streams group supports the firm’s journey to become a total beverage company with drink options for all occasions and need states.
In 2018, Coca-Cola entered the alcohol category in Japan with the launch of Lemon-Dou, and in 2020 the company announced a relationship with Molson Coors, which manufactures, markets and distributes Topo Chico Hard Seltzer in the US.
The company said the initial success of Topo Chico Hard Seltzer shows that consumers are excited to see recognizable beverage brands they already enjoy with alcohol enter the ready-to-drink alcohol space.
“Third-party relationships with licensed alcohol manufacturers show how we are following the consumer, taking an agile, experimentative approach to expanding our brands’ reach based on the evolving landscape,” White said.
“The flavored alcohol beverage category is unique as there are synergies with our existing business models in various markets around the world. With the combination of a familiar, loved brand and strong distribution and market presence, we believe people will love the Fresca brand in this new category.”
