Topo Chico Hard Seltzer, the sole alcoholic beverage in Coca-Cola’s expansive product line, reports positive performance after less than a month in the US market.
The drink launched in Europe and Latin America in late 2020 and hit the shelves in nine US states as well as seven metro areas last month. Molson Coors (NYSE: TAP) is producing, distributing and marketing the hard seltzer as part of a distribution deal with The Coca-Cola Company (NYSE: KO).
“So the early responses in Latin America and Europe are good,” said Chairman and CEO of The Coca-Cola Company, James Quincey.
“It has been in the U.S. for a couple of weeks, particularly in the Southern states and particularly Texas where Topo Chico is very strong…And it’s selling well on two weeks of data and a very strong start in Texas. Of course what we are really focused on is how to get more national and how to drive repeat rates. That will be the key, can we drive repeat rates. A very encouraging initial start,” Quincey asserts.
Topo Chico Hard Seltzer is currently available in Texas, Arizona, California, Florida, Oklahoma, Oregon, Georgia, New Mexico and Florida. The beverage is also available in select metro areas including Boston, New York, Chicago, Seattle/Tacoma, and Washington D.C.
The beverage comes in four flavors including Tropical Mango, Tangy Lemon Lime, Exotic Pineapple and Strawberry Guava. According to the brand’s website, “Topo Chico Hard Seltzer delivers all the refreshment consumers love, made in the spirit of Topo Chico Mineral Water, with added minerals for taste.” Each 12 ounce can contains 100 calories, 2 grams of sugar and an ABV of 4.7%. The seltzer is gluten free.
Topo Chico Mineral Water has been a staple in Northern Mexico and Texas since it was first bottled in Monterrey, Mexico in 1895. The brand was purchased by Coca-Cola in 2017 for $220 million and has since become popular across the US and beyond.
Topo Chico Hard Seltzer won’t be the only alcoholic beverage in Coke’s repertoire for much longer. Molson Coors recently announced that Topo Chico Ranch Water is in development. Ranch Water is a cocktail with roots in West Texas, traditionally made with tequila, lime juice and Topo Chico Mineral Water. However, Topo Chico is not the first Ranch Water ready-to-drink (RTD) beverage on the market.
Brands like Lone River, Shotgun, and Waterbird are known for their Ranch Water RTD canned cocktails. Heineken will also be entering the Ranch Water market later this month via Dos Equis, the company’s Mexican cerveza brand.
Coca-Cola reported impressive Q1 numbers last week, beating Wall Street forecasts and gaining strength in the wake of the pandemic. Last year Coca-Cola announced their “Emerging Stronger” strategy for combating the impacts of the pandemic.
The strategy involved optimizing the company’s portfolio by removing under-performing brands and diverting attention and resources to brands showing potential. The company’s first quarter earnings suggest their strategy is working. This is a positive sign for Coca-Cola, as well as for Topo Chico Hard Seltzer as it continues its launch.
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