The Fresca brand is Coca-Cola’s fastest-growing soft drink trademark.
The Coca-Cola Company has partnered with Constellation Brands to bring an alcohol version of its Fresca brand to market.
Under the agreement, the new Fresca Mixed line of spirits-based ready-to-drink cocktails will be manufactured and marketed by Constellation Brands, as well as distributed under its three-tier network. The line is expected to launch this year.
Constellation includes such brands as Corona and Modelo Negra in its portfolio, and Bill Newlands, Constellation’s president and CEO, said in a statement that the consumer-trusted Fresca brand will play well within the alcohol beverage category.
Dan White, chief of new revenue streams, Coca-Cola North America operating unit, in turn pointed to Constellation Brands’ consumer-focused approach, large distribution network, and experience in distilled distribution as key benefits.
“One of the core tenets of our innovation strategy is a belief in the power of extending strong and trusted brands in thoughtful ways to bring to market unique products that resonate with consumers,” added Mallika Monteiro, Constellation’s chief growth, strategy, and digital officer. “This is an exciting agreement that allows us to continue expanding our premium portfolio in ways that deliver distinctive consumer value propositions that include things like more flavor, different alcohol bases and functional benefits.”
The adult alternative beverage market, which includes ready-to-drink cocktails, represents nearly an $8 billion segment that’s projected to grow at a 15-17% CAGR over the next three years, according to Constellation Brands.
The PepsiCo chairman and CEO sees an opportunity to create a unique distribution system in the U.S., with an integrated system that can make coordinated decisions across multiple states from one decision point.