Fresca Mixed, which is inspired by recipes from Fresca fans around the world, is expected to launch later this year and will be produced, marketed and distributed by Constellation Brands. Financial terms of the deal were not disclosed.
|KO||THE COCA-COLA CO.||60.75||-0.25||-0.41%|
|STZ||CONSTELLATION BRANDS INC.||243.40||+0.59||+0.24%|
"The Coca-Cola Company and Constellation Brands have a shared passion for building some of the world’s most loved brands and for building best-in-class beverage experiences," Coca-Cola North America's chief of new revenue streams Dan White said in a statement. "Our new relationship with Constellation Brands is ideal due to their consumer-focused approach to brand building, expansive distribution network, and distilled distribution expertise."
Constellation's chief growth, strategy and digital officer Mallika Monteiro said the agreement will allow the company to continue to expand its portfolio and deliver "distinctive consumer value propositions" such as more flavor, different alcohol bases and functional benefits.
Fresca, which contains zero calories and no sugar, is currently the fastest growing soft drink trademark in Coca-Cola's U.S. portfolio.
The Fresh Mixed offering comes after Coke introduced Topo Chico hard seltzer last year as part of a partnership with Molson Coors Beverage Company. Meanwhile, competitor Pepsi announced an alcoholic version of Mountain Dew in partnership with Boston Beer and Anheuser Busch announced a line of Bud Light-branded hard seltzer.
Adult alternative beverages, including ready-to-drink cocktails, represent a nearly $8 billion segment projected to grow at a 15% to 17% compound annual growth rate over the next three years, according to Constellation Brands market research.