Topo Chico’s fated move into hard spirits is coming in 2023, via Molson Coors.
On the heels of the fast-growing Topo Chico Hard Seltzer brand, Molson Coors will launch a spirit-based version of Topo Chico in key markets, such as the southwest and southeast and parts of the Midwest.
David Coors, Molson Coors’ VP of next generation beverages, made the reveal last week during the company’s distributor convention in Nashville. Coors reminded wholesalers that he warned them a wave of spirit-based, ready-to-drink (RTD) canned cocktails was coming during last year’s convention.
“It’s now safe to say that that wave is here,” he said. “The category has grown to $2.7 billion and it’s growing 54% year-to-date. And we see a big opportunity in tequila RTDs, and it just so happens we have the powerhouse brand that’s synonymous with tequila cocktails: Topo Chico.”
Topo Chico Spirited (5.9% ABV) will come in three flavors, two with a tequila base and one with a vodka base.
Jamie Wideman, Molson Coors VP of innovations, and her team worked closely with the Coca-Cola team to develop the product.
Wideman told wholesalers that the line is “premium, bar-worthy cocktails, ready-to-drink and made with top-notch ingredients,” including blanco tequila from Mexico. Topo Chico is made with “real spirits, real juice and sparkling water.” The goal, Wideman said, was to create “sessionable, light-flavored cocktails.”
“These are real cocktails, not hard seltzer,” she added. “Our packaging is going to cue cocktail. We know the opportunity here is massive. We’ve got a winner on our hands.”
Matt Escalante, Molson Coors VP of marketing for hard seltzers, stressed that Topo Chico Spirits “isn’t a replacement for our hard seltzer.”
“It’s a premium way to complement our existing portfolio and drive trade up,” he said.
Escalante reeled off a few highlights from Topo Chico Hard Seltzer’s national launch, including:
- Margarita variety pack was Drizly’s No. 1 selling new item in Q2;
- Topo Chico Ranch Water is the “fastest turning” ranch water pack in the country;
- The brand family is now “neck and neck” with Bud Light Seltzer for the No. 3 hard seltzer spot, excluding spirit-based offerings, namely High Noon Sun Sips.
Year-to-date through September 4, off-premise dollar sales of Topo Chico’s variety pack are up +86.4%, to nearly $94 million, in multi-outlet and convenience stores tracked by market research firm IRI. The pack is the 45th overall best-selling beer category item at retail and Molson Coors’ eighth best-seller in its portfolio, according to the firm.
Meanwhile, Margarita sales are nearly $29 million, Ranch Water sales have surpassed $17 million, its Strawberry Guava pack has posted more than $13 million in sales, and its Tangy Lemon Lime single can has topped $6 million (+149.5% year-over-year).
In Topo Chico’s next chapter, the brand has an opportunity to reach new drinkers and raise awareness with 21- to 34-year-olds, Escalante said.
Escalante said the original pack is among the five fastest turning 12-packs in the seltzer segment, and Margarita being “highly incremental,” with the majority of Topo Chico Margarita buyers new to the franchise. Escalante said the company needs to get these core packs “everywhere,” and the company will support them with national advertising.
“We have big ambitions to be the No. 1 hard seltzer with Latinos,” he said. “We already index 25% higher with Latino drinkers than any other seltzer. And it’s not just Mexican Americans either. It’s Puerto Ricans, Cubans, Dominicans, a wide variety of Latino Americans.”