One of the most iconic and well-known mixed alcoholic beverages of all time is set to enter the ready-to-drink category thanks to a partnership between two historic beverage companies. Here are the details.
What Happened: Beverage giants Coca-Cola (NYSE: NYSE:KO) and Brown Forman (NYSE:BFb) Inc (NYSE: BFA)(NYSE: BFB) announced a partnership to bring the iconic Jack & Coke drink to retail outlets as a ready-to-drink, pre-mixed cocktail.
“This relationship brings together two classic American icons to deliver consumers a taste experience they love in a way that is consistent, convenient and portable,” Brown-Forman Corporation CEO Lawson Whiting said.
Whiting said the combination will complement the existing ready-to-drink line of beverages under the Jack Daniel’s brand.
The beverage will be available beginning in Mexico in late 2022 with other global markets planned afterwards. The drink is expected to have an alcohol beverage volume (ABV) of 5%. A zero-sugar version of the drink will also be launched.
Related Link: Molson Coors Continues Hard Seltzer Push With Coca-Cola Topo Chico Deal
Why It’s Important: News of the new ready-to-drink Jack and Coke continues expansion into the alcoholic beverage category for Coca-Cola.
“We keep consumers at the center of everything we do as we continue to develop our portfolio as a total beverage company, and that includes new products with our iconic Coca-Cola brand,” Coca-Cola CEO James Quincey said.
Coca-Cola previously partnered with Molson Coors Beverage Co (NYSE: TAP) on alcoholic versions of Topo Chico and its Simply lemonade brands.
“Over the past two years, we’ve seen success by shaking up existing categories with new brands that have clear, compelling points of difference, like Coca-Cola’s Topo Chico Hard Seltzer, Vizzy Hard Seltzer and ZOA Energy Drink,” Molson Coors’ Chief Marketing Officer Michelle St. Jacques said.
Coca-Cola also announced a partnership with Constellation Brands (NYSE: STZ) to create alcoholic beverages based on its Fresca soft drink.
The partnerships could continue to push Coca-Cola into new growth categories as it attempts to diversify away from carbonated soft drinks. Partners handle most of the distribution and marketing for the new alcoholic beverages, which brings in revenue for Coca-Cola and shows the strength of its portfolio of well-known beverage brands.
Rival PepsiCo (NYSE: NASDAQ:PEP) is also said to be eyeing the launch of several alcoholic beverages with some of its brands, including in the hard seltzer category.
Hard seltzer sales were $500 million in 2018 and grew rapidly to $4 billion in 2020. The rise of hard seltzer has helped boost shares of Boston Beer Company Inc (NYSE: SAM), owner of the Truly brand.
Beverage industry research firm IWSR expects hard seltzer consumption to triple by 2023.
Reasons for the growth of hard seltzer could be the wide availability in cans, being seen as an outdoor drink in the summer and low alcohol volume, all items that could help boost the launch of the Jack & Coke canned cocktail from Coca-Cola and Brown Forman.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga