Coca-Cola & Bacardi to launch RTD cocktail as innovation heats up in the space
Coca-Cola and Bacardi have announced an agreement to debut Bacardi rum and Coca-Cola as a ready-to-drink pre-mixed cocktail. The new beverage – ‘Bacardi Mixed with Coca-Cola RTD’ - will launch in select European markets and Mexico in 2025. The new drink will have a global standard of 5% ABV, although this will vary between markets.
Category blurring is taking place as never before as big names in alcohol partner with heavyweights in soft drinks; all hoping to take a chunk of the important and growing RTD market.
Not so long ago, the concept of Coca-Cola moving into alcohol would have been seen as an odd decision. But now it’s increasingly playing in this space.
“We are continuing to develop our portfolio as a total beverage company, including in the growing alcohol ready-to-drink market,” said James Quincey, Chairman and CEO of The Coca‑Cola Company. “This new relationship with Bacardi Limited supports our strategic expansion, and we look forward to the introduction of BACARDÍ Mixed with Coca‑Cola next year.”
With its strong growth rates, the attraction of the RTD alcohol category is undeniable. For beverage alcohol giants, getting into the category is relatively easy.
But it's more complicated for soda giants, who need to learn how to play in a completely different category. That ranges from the development process (creating consistent alcoholic drinks) to distribution (which can have a completely different model than soda, as seen with the US' three-tier system).
For soft drinks companies, teaming up with a beverage alcohol player is a way to master this category instantly and gain mass distribution from the outset.
But there's still advantages for beverage alcohol, too. Bacardi, for example, says teaming up with Coca-Cola in a RTD format will also help it grow reach and accessibility.
What are some of the other beverages in this space?
Bacardi Mixed with Coca-Cola RTD
Bacardi Mixed with Coca-Cola RTD will debut in Europe and Mexico next year.
The new drink will have a global standard of 5% ABV, although this will vary between markets.
BACARDÍ Mixed with Coca‑Cola RTD packaging will feature 'two of the world’s most recognizable global trademarks'.
Family-owned Bacardi was first established in 1862 in Cuba before moving to Bermuda, while Coca‑Cola debuted in 1886 in Atlanta.
Jack & Coke RTD
The Coca-Cola has already teamed up with Brown-Forman for a Jack & Coke RTD canned cocktail.
Like Coca-Cola and Bacardi, Mexico was the launch market for the new drink. It has a global benchmark of 5% ABV, although this varies according to market.
Topo Chico Hard Seltzer
One of the earlier alcohol-soda tie-ups is Topo Chico Hard Seltzer, which launched in 2021.
Topo Chico is a premium Mexican sparkling water brand Coca-Cola acquired in 2017.
Teaming up with Molson Coors allowed Coca-Cola to expand this into alcohol (Molson Coors manufactures, markets and distributes the alcoholic version in the US).
Hard Mtn Dew
PepsiCo has taken its fan-favorite soft drink Mtn Dew into alcohol with a partnership with Boston Beer.
Boston Beer – the craft brewer behind brands such as Sam Adams and Truly Hard Seltzer – developed and produces Hard Mtn Dew.
Hard Mtn Dew is caffeine free and zero sugar (instead sweetened with Acesulfame Potassium and Sucralose).
The Beast Unleashed and Nasty Beast Hard Tea
Monster started its alcohol journey with the acquisition of CANarchy Craft Beer Collective – a craft beer and hard seltzer company – for $330m in January 2022. That gave it a ‘springboard’ into the alcohol sector: gaining the infrastructure, know-how and manufacturing capabilities it needed.
It’s since moved its focus onto its own launches under the existing Monster brand equity: with the Beast Unleashed and Nasty Beast Hard Tea.
Fresca Mixed
Fresca Mixed – a line of premium, pre-mixed cocktails made with vodka or tequila – launched in 2022 as a result of the agreement between Coca-Cola and Constellation Brands.
Constellation Brands using the Fresca brand to manufacture, market and distribute the drinks.
