The Coca-Cola Company (NYSE:KO) announced Thursday that it will launch a hard seltzer drink under the banner of its Topo Chico mineral water brand. With this announcement, it's a rare foray into alcoholic beverages for 128-year-old Coca-Cola.
Coke's Plans For Topo Chico: Coca-Cola acquired Topo Chico in 2017; it was mainly a sparkling water company that had cult status in Texas, according to CNBC.
Coca-Cola has expanded the production of Topo Chico ever since the acquisition.
Both the sparkling water and hard seltzer market are growing, and Coca-Cola doesn't want to be left out.
The soft drink giant, which looks forward to being a "total beverage company," said it would start offering Topo Chico Hard Seltzer later this year in Latin America. The company plans to release the product in the U.S. in 2021.
The Competition: Other players in the market hold substantial market share, like Boston Beer Company Inc's (NYSE:SAM) Truly.
With its minimal calories and lower alcohol level, hard seltzers are a popular choice among millennials.
The sector singlehandedly reversed a global decline in alcohol consumption, according to IWSR.
Coca-Cola said it will reveal more details about the product closer to the launch date.
Photo courtesy of Coca-Cola.