VICTOR, NY. – Alcoholic beverage manufacturer Constellation Brands, Inc. has entered an agreement with The Coca-Cola Co., Atlanta, to introduce Fresca branded mixed cocktails. Terms of the agreement were not disclosed.
To be marketed under the Fresca Mixed brand, the spirit-based, ready-to-drink cocktails will be introduced later this year. Constellation Brands did not reveal what varieties the beverages will come in but said the formulations will “be inspired by recipes created by Fresca fans around the globe.”
“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,” said Mallika Monteiro, chief growth, strategy, and digital officer at Constellation Brands. “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 category, which includes RTD cocktails, represents a market valued at approximately $8 billion and is projected to grow at a 15% to 17% compound annual growth rate, according to Constellation Brands.
“Our new relationship with Constellation Brands is ideal due to their consumer-focused approach to brand building, expansive distribution network, and distilled distribution expertise,” said Dan White, chief of new revenue streams for Coca-Cola’s North America operating unit. “With the launch of Fresca Mixed by Constellation, people will have an entirely new way to enjoy the taste of Fresca, now mixed with real spirits.”
The agreement with Constellation Brands is The Coca-Cola Co.’s second foray into the alcoholic beverage market. In September 2020, the company entered into an agreement with the Molson Coors Beverage Co., Chicago, to manufacture, market and distribute Topo Chico Hard Seltzer. The product initially was tested in Latin America, the test was expanded to some US states and is scheduled to be rolled out nationwide in the United States this year.
Coca-Cola is not the only major non-alcoholic beverage company to bring its brands to the alcoholic beverage category. In August, PepsiCo, Inc., Purchase, NY, and The Boston Beer Co., Boston, entered an agreement to introduce Hard Mtn Dew. The new line is scheduled to be introduced this year.