Page 46 - Food&Drink Magazine Aug-Sep 2021

BEVERAGE PRODUCTION
Coca-Cola goes hard
lower in calories, vegan friendly or organic drinks. Seltzers have strong appeal for that market,” Friedman tells Food & Drink Business.
Priest says Topo Chico is targeted at consumers looking for something new this summer.
“We have a strong track record in sparkling waters, so it made sense to look at our portfolio for opportunities. With such strong brand recognition for Topo Chico in Latin and North America, to add alcohol and tap into a growing trend was not a difficult decision. There’s also not a lot we need to change in terms of the manufacturing process,” Priest tells Food & Drink Business.
Coca-Cola Company CEO and chair James Quincy says the hard seltzer drew on the mineral water’s “cult-like following and growing popularity as a craft cocktail mixer”.
“The Topo Chico brand has tremendous relevance and resonance with Millennial consumers. So I think this is going to be a great opportunity for us... it’s very synergistic for the Coke system globally.
“We’re going to experiment with a number of cities around the world... just one of the many things we’re doing to really focus our portfolio to be very consumer centric and drive those brands that can create scale for us,” Quincy says.
In 2019, the company launched Lemon-dou (Demon Lemon) in Japan. “It is quite a sour yuzu flavoured hard seltzer that has been very successful in the Japanese market. It’s another example of us launching in one market and then looking to expand the brand into other countries,” Priest says.
Coca-Cola is looking to launch it in the US and maybe Australia down the track.
Priest says: “We have market share ambitions and that is to be at the top end. We want to have relevance in the market and that means we need scale.
“The category has room for growth and expansion. This is a positive start for us to enter alcohol and then build.”
Coca-Cola Australia has entered the Australian alcohol market with the launch of Topo Chico Hard Seltzer. Kim Berry talks to Coca-Cola South Pacific vice president Robert Priest about the move.
MAKING an alcoholic sparkling water is not a hard ask for a global beverage giant already producing some of the world’s most recognised drinks. As Coca-Cola South Pacific vice president Robert Priest says, “our strength is in making great tasting drinks across a whole range of formats”.
Whether The Coca-Cola Company knew when it acquired the Mexican sparkling water brand Topo Chico in 2017 that it would become the base for the company’s first foray into an alcoholic seltzer is a moot point. In 2020, it launched the first three flavours of Topo Chico Hard Seltzer in Mexico and Brazil, followed by North America at the beginning of this year.
The Australian hard seltzer market has been a highlight in the beverage sector over the last 12-18 months. Grand View Research (GVR) says the Asia Pacific region is the fastest growing, with an expected compound annual growth rate
(CAGR) of 17 per cent. Australia and South Korea are the early adopters, GVR says.
In 2019, the global hard seltzer market was valued at around $6 billion – it is expected to exceed $419 billion by 2027. GVR anticipates hard seltzers with ABV content of 1-4.9 per cent will experience the fastest growth as consumers – predominantly millennials – look for “healthier” alcoholic options and the better-for-you trend matures.
Endeavour Group RTD category manager Lance Friedman says Coca-Cola’s entry into the market reflects changing consumer drinking habits.
“We have seen consistent growth in the seltzer category in the last year, including during the cooler months.
“In the last few years, we have seen Australians become more mindful of what they are consuming, moving towards drinks that are lower in alcohol or zero alcohol, as well as preservative-free,
ABOVE: Topo Chico’s marketing makes the hard seltzer look pretty chilled.
TOP RIGHT: Topo Chico is made in Mexico.
46 | Food&Drink business | August/September 2021 | www.foodanddrinkbusiness.com.au