ATLANTA (News Nation) — Coca-Cola is entering the hard seltzer business. The Atlanta based company announced an experimental drink which will first launch in Latin America.
“Topo Chico Hard Seltzer is an experimental drink inspired by Topo Chico sparkling mineral water, which has been popular with many mixologists,” the company said in a statement.
Industry analysts expect the hard seltzer business, which is led by brands like White Claw and Truly, will see large growth in the coming years. In December, IWSR Drinks Market Analysis forecasts that by 2023, the category will more than triple.
“Hard seltzers are far from a fad, they’re growing at a spectacular rate, and increasingly, hard seltzer producers are pulling consumers from other beverage alcohol categories, not just beer. Combined, hard seltzers and other canned seltzer-like products (vodka soda, as an example) will drive the total ready-to-drink category, making it the fastest-growing beverage alcohol category in the U.S. over the next five years,” said Brandy Rand, COO of the Americas at IWSR Drinks Market Analysis in a statement.
This comes as the Coca-Cola Company has seen net revenues decline 28% in the 2nd quarter of 2020, amid the COVID-19 pandemic, according to an earnings report released last week. The company attributed the drop due to “away-from-home channels, which represent approximately half of the company’s revenues.”