The Coca-Cola Company (NYSE: KO) announced its Q3 earnings on October 27. The beverage giant beat the Zacks Consensus Estimate, which was $0.58 per share, and reported earnings of $0.65 per share. During the subsequent earnings call with analysts, Coca-Cola’s Chairman and CEO, James Quincey, discussed the future of Topo Chico Hard Seltzer and the successful brand’s upcoming opportunities for continued growth.

With the help of distribution partner Molson Coors (NYSE: TAP), Coca-Cola has been working hard to expand Topo Chico Hard Seltzer’s reach in the US and Canada. Molson Coors hopes to put the brand’s flagship line of hard seltzers on shelves in all fifty US states by this coming January. Coke and Molson are also gearing up for the launch of Topo Chico Margarita Hard Seltzers in 2022. The margarita-inspired drinks will be the first full line of flavors added to the brand’s portfolio since Topo Chico Hard Seltzer launched in March of this year.

“Molson Coors recently announced the national rollout of Topo Chico Hard Seltzer in the US with new Margarita flavors. We also recently announced the expansion of our relationship with Molson Coors to bring the brand into Canada,” Quincey stated.

The Coca-Cola Company also knows how important it is to grow Topo Chico Hard Seltzer globally. The hard seltzer market is maturing in the US. The beverage category gained traction for a few years before the pandemic and then skyrocketed during quarantine. The category has continued to grow since quarantine restrictions were lifted.

However, the international seltzer market is still in its infancy. Consumers overseas have watched the bubbly beverage trend in the US and are eager to try it for themselves. Coca-Cola appears to be working on a plan to stay ahead of the curve as hard seltzers go global.

“Our experimentation with Topo Chico Hard Seltzer is expanding, and we’re gathering valuable insights globally, including the importance of building the category in regions where it is nascent. We are seeing encouraging performance where the flavored alcoholic beverage category is growing rapidly, and we have on-shelf presence,” Quincey explained.

The Coca-Cola Company is supporting the global expansion of Topo Chico Hard Seltzer with a new advertising campaign from creative agency HERO + McCann entitled “A Perfect Contradiction.” The campaign, which is scheduled to air alongside the brand’s worldwide launch, has already debuted in markets in South America, Europe, Australia and beyond.

Quincey acknowledged that the Coca-Cola Company may experience unprecedented international hurdles as a result of the pandemic. But luckily for Topo Chico, which was purchased by the massive beverage company in 2017, this isn’t Coca-Cola’s first time navigating unforeseen global challenges. Coke has been in business since 1892 and is ready to overcome any issues that stand in the way of expanding Topo Chico Hard Seltzer’s reach.

“As the pandemic recovery has progressed, we’ve seen challenges and disruptions in many parts of the world, in addition to inflationary forces that could persist. We have years of experience in dealing with these types of environments and are enhancing our strong capabilities that enable us to do so,” Quincey insisted.

From the expansion of Topo Chico Hard Seltzer to the strengthening of Coke’s diverse catalog of brands, Quincey and his team at The Coca-Cola Company are ready to take on Q4.

“…[W]e’re confident that as the world begins to move beyond the pandemic, we’ll deliver against our long-term growth model consistently and sustainably over time. And from putting our new marketing model into action to shaping a strong and enduring innovation pipeline, from our digital initiatives to our important sustainability agenda, we are working in alignment with our bottling partners with the power of our people, and we are poised to drive growth at scale for the entire system for years to come.”

Shirani Jayasuriya
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