Molson Coors Beverage Company is expanding its partnership with Coca-Cola with the launch of Topo Chico Spirited, a line of spirit-based ready-to- drink cocktails.
Topo Chico Spirited will consist of 100% real spirits, including premium tequila from Jalisco, Mexico, and feature a lineup of three familiar cocktails, according to the companies.
David Coors, Molson Coors Vice President of Next Generation beverages, said that Topo Chico Spirited will bring something completely different to our aisle, taking inspiration from the popular cocktails made in bars and restaurants today. Topo Chico Spirited believes that the canned cocktail space will be shaken with unmatched flavors and a legacy that is rooted in the iconic 125-year-old master-brand. The Topo Chico Spirited line will hit store shelves in more than 20 markets in the country in 2023, including Texas, Colorado, Oklahoma, Kansas, Missouri, Arizona, New Mexico, Nevada, Washington, Florida, Arkansas, Mississippi, Tennessee, Georgia, Louisiana, Illinois, Wisconsin, Ohio, Minnesota, Michigan, and Virginia.
The launch of Topo Chico Spirited comes after the beverage giants Topo Chico Hard Seltzer launched last year and launched the popular Simply Spiked Lemonade in June.
In August, Molson Coors CEO Gavin Hattersly said that it grew to over 9% of the U.S. hard seltzer market, which was bolstered in part by Topo Chico Hard Seltzer, as a result of the company's second quarter earnings call. The company sold more than 60,000 hectoliters of Simply Spiked Lemonade, which achieved a 3.5% share in the food and beverage segment during the quarter.
Coca-Cola entered the RTD alcoholic beverage category in 2018 with Lemon-Dou in Japan. Other offerings include Jack Daniel's Coca-Cola RTD, Schweppes Pre-Mixed Cocktails and Fresca Mixed Canned Cocktails.
A new report released in September by the Distilled Spirits Council of the United States DISCUS found that premixed cocktails, which include spirits-based RTDs, were the fastest growing spirits category in revenue and volume in 2021, according to a report released by the Distilled Spirits Council of the United States.
The trade organization notes that in 2021, sales of premixed cocktails and spirits-based RTDs rose by 42.3% to $1.6 billion. The category saw a 56% increase in volume, selling 13.1 million more cases than in 2020.
Sales of spirits-based RTD beverages have taken off and we see no signs of a slowdown, a DISCUS spokeswoman told FOX Business. Consumers are seeking authenticity, quality, variety and convenience in their beverage alcohol products, and that is what spirits-based RTDs have to offer. The IWSR, a London-based firm that tracks global alcoholic beverage trends, predicts that spirit-based RTDs could reach a compound annual growth rate of 33% by the year 2025.