Coca-Cola Teams With Constellation Brands To Launch RTD Fresca
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.
The Fresca brand is Coca-Cola’s fastest-growing soft drink trademark in its portfolio, according to the company, and the deal mirrors a similar partnership formed last year between PepsiCo and The Boston Beer Company.
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.
[See also: Coca-Cola Global Brand Refresh Focuses on Consumer Experience]
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 Coca-Cola Company is the No. 14 publicly owned consumer goods company while Constellation Brands is No. 68.
