The Coca-Cola Company is expanding its reach in bev-alc with another ready-to-drink canned cocktail (RTD).
Following a similar playbook to the rollout of its two previous RTD entries with Jack Daniel’s and Absolut Vodka, the soda giant has reached an agreement with Bacardi rum to launch Bacardi Mixed with Coca-Cola in Europe and Mexico starting in 2025.
The “global benchmark” for Bacardi Mixed with Coca-Cola will be 5% ABV, but “will vary depending on the market,” according to a press release.
“We are continuing to develop our portfolio as a total beverage company, including in the growing alcohol ready-to-drink market,” said Coca-Cola chairman and CEO James Quincey in the release. “This new relationship with Bacardi Limited supports our strategic expansion, and we look forward to the introduction of Bacardi Mixed with Coca‑Cola next year.”
Coca-Cola’s other bev-alc offerings, managed by its bev-alc subsidiary Red Tree Beverages, include Minute Maid Spiked wine-based cocktails, as well as several products through licensing agreements with bev-alc companies: Topo Chico Hard Seltzer, Simply Spiked and Peace Hard Tea with Molson Coors; Fresca Mixed with Constellation Brands; and Jack & Coke with Brown-Forman.
“We are excited to bring together two iconic brands so that consumers may enjoy one of the world’s most popular cocktails – first invented generations ago with Bacardi rum and Coca‑Cola – in a high-quality, convenient format,” said Mahesh Madhavan, CEO of Bacardi Limited. “Through this relationship, we will expand our reach and accessibility so that even more consumers of legal drinking age can enjoy this classic Bacardi rum and Coca‑Cola cocktail.”
Traditional Brand Families Still Finding Footing in RTDs
Despite innovation this year in RTDs, the most mature crossover non-alc brand families (Coca-Cola, Sunny D, Topo Chico, and Vita Coco) are failing to cycle their initial launch sales. A recent report from Bump Williams Consulting’s (BWC) isolated 21 crossover RTD items that launched during the first half of 2023 or earlier, and collectively, their dollar sales have declined by -50% versus a year ago.
Sales from brand families that have extended into RTDs (versus the new RTD brands such as High Noon) in general have slowed over the past year, according to the same report. The top 13 extension brand families represent 12.8% of RTD dollars, down -4 share points YTD versus last year. Among extensions, there are only three that are managing to grow dollar sales versus last year, and only one (Absolut) that has managed to gain share of the spirits- and wine-based RTD segment.
But RTDs are where many major non-alc and spirit companies are placing their bets— just yesterday, Suntory announced a major campaign around its Japanese-inspired vodka seltzer brand, -196, which it is expanding into U.S. markets this year. The group has found the most success with acquired brand On The Rocks.
Bacardi Limited on the other hand, has focused its prepared cocktail offerings on extensions of its primary lines, such as BACARDÍ Real Rum Canned Cocktails and Grey Goose’s ready-to-serve martini collection. Rum RTDs in general have recently been a medium for larger to smaller brands to recruit customers into a spirit category that’s struggling against the rise of tequila and whiskey.