Molson Coors Enters Exclusive Agreement with The Coca-Cola Company to Bring Topo Chico Hard Seltzer to the U.S.
Molson Coors Beverage Company (NYSE: TAP) has announced an exclusive partnership with The Coca-Cola Company to manufacture and distribute Topo Chico Hard Seltzer in the U.S. This move aims to enhance Molson Coors' above premium portfolio and strengthen its position in the expanding hard seltzer market. The launch is scheduled for 2021, featuring flavors such as Tangy Lemon Lime and Tropical Mango. This represents the third hard seltzer brand for Molson Coors, following the successful launches of Vizzy and Coors Seltzer in 2020.
- Exclusive agreement with Coca-Cola to launch Topo Chico Hard Seltzer enhances premium portfolio.
- The launch of Topo Chico Hard Seltzer expected to compete strongly in the growing hard seltzer market.
- Three hard seltzer brands in portfolio, with Vizzy and Coors Seltzer showing considerable growth.
- Dependence on third party for initial production and packaging may pose operational risks.
- Market competition is intense, requiring effective differentiation and marketing strategies.
CHICAGO--(BUSINESS WIRE)--Molson Coors Beverage Company (NYSE: TAP, TSX: TPX) has entered into an exclusive agreement with The Coca-Cola Company to manufacture, market, and distribute Topo Chico Hard Seltzer in the U.S., taking another big step in its plan to aggressively grow the company’s above premium portfolio and become a major competitor in the fast-growing hard seltzer segment.
“Building on the incredibly successful launches of Vizzy and Coors Seltzer earlier this year, we are thrilled that Molson Coors will launch Topo Chico Hard Seltzer in 2021,” said Gavin Hattersley, CEO of Molson Coors. “This is another significant step in growing our above premium portfolio and becoming a major competitor in the rapidly-growing hard seltzer segment, both key components of our revitalization plan.”
Topo Chico Hard Seltzer blends purified sparkling water, a gluten-free alcohol base and natural flavors, with minerals added for taste, and is inspired by Topo Chico sparkling mineral water, a 125-year-old brand with a rich history that has been popular with consumers across the United States including many mixologists. Topo Chico Hard Seltzer will be developed in 4 flavors including: Tangy Lemon Lime, Exotic Pineapple, Strawberry Guava and Tropical Mango, available in 4 flavor, 12-pack Variety Pack (Slim Can).
“The Coca-Cola Company and Molson Coors have a shared passion for building and growing some of the world’s most beloved brands,” said Dan White, Vice President of Strategic Initiatives, The Coca-Cola Company. “In bringing Topo Chico Hard Seltzer to market, our focus is speed, quality and efficiency. Our relationship with Molson Coors Beverage Company allows Topo Chico Hard Seltzer to launch with scale, at an accelerated pace, delivering a product that consumers will love.”
Molson Coors will use its marketing, sales and distribution expertise for a scaled national launch in the first half of 2021, prioritizing markets where Topo Chico sparkling mineral water is known and loved. The production and packaging of the products will be initially handled by a third party.
Topo Chico Hard Seltzer represents the third hard seltzer brand in the Molson Coors portfolio. Vizzy, which is made with antioxidant vitamin C from acerola superfruit, launched in April and has been on Nielsen’s top-10 growth brands since August 8. Coors Seltzer launched at the end of August, and early results have exceeded expectations and Molson Coors believes it can be the leading popular beer brand in the segment.
The agreement is the latest in a series of steps Molson Coors has made to grow the business by maintaining the strength of its iconic core brands, aggressively growing its portfolio of above premium beverages, expanding beyond beer altogether and investing in the company’s core capabilities. Earlier this month Molson Coors announced a joint venture to expand Yuengling beer westward for the first time ever.
About Molson Coors Beverage Company
For over two centuries Molson Coors has been brewing beverages that unite people for all of life’s moments. From Coors Light, Miller Lite, Molson Canadian, Carling, and Staropramen to Coors Banquet, Blue Moon Belgian White, Blue Moon LightSky, Vizzy, Leinenkugel’s Summer Shandy, Creemore Springs and more, Molson Coors produces some of the most beloved and iconic beer brands ever made. While the company’s history is rooted in beer, Molson Coors offers a modern portfolio that expands beyond the beer aisle as well.
The company’s commitment to raising industry standards and leaving a positive imprint on our employees, consumers, communities and the environment is reflected in Our Imprint and our 2025 sustainability targets. To learn more about Molson Coors Beverage Company, visit molsoncoors.com, MolsonCoorsOurImprint.com or on Twitter through @MolsonCoors.
About The Coca-Cola Company
The Coca-Cola Company (NYSE: KO) is a total beverage company, offering over 500 brands in more than 200 countries and territories. In addition to the company’s Coca-Cola brand, our portfolio includes AdeS, Ayataka, Costa, Dasani, Del Valle, Fanta, Georgia, Gold Peak, Honest, innocent, Minute Maid, Powerade, Simply, smartwater, Sprite, vitaminwater and ZICO. We’re constantly transforming our portfolio, from reducing sugar in our drinks to bringing innovative new products to market. We’re also working to reduce our environmental impact by replenishing water and promoting recycling. With our bottling partners, we employ more than 700,000 people, helping bring economic opportunity to local communities worldwide. Learn more at www.coca-colacompany.com and follow us on Twitter, Instagram, Facebook and LinkedIn.
Forward Looking Statements
This press release includes “forward-looking statements” within the meaning of the U.S. federal securities laws. Generally, the words “believe,” “aims,” “expect,” “intend,” “anticipate,” “project,” “will,” “outlook,” “desire,” and similar expressions identify forward-looking statements, which generally are not historic in nature. Statements that refer to projections of its future performance, projections regarding the seltzer market and expectations regarding the Topo Chico Hard Seltzer are forward-looking statements. Although Molson Coors believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from Molson Coors’ historical experience, and present projections and expectations are disclosed in Molson Coors’ filings with the Securities and Exchange Commission (“SEC”). These factors include, among others, the impact of the coronavirus pandemic, the impact of increased competition resulting from further consolidation of brewers, competitive pricing and product pressures; health of the beer industry and its brands in its markets; economic conditions in its markets; Molson Coors’ ability to maintain manufacturer/distribution agreements; changes in its supply chain system; availability or increase in the cost of packaging materials; success of its joint ventures; changes in legal and regulatory requirements, including the regulation of distribution systems; increase in the cost of commodities used in the business; the impact of climate change and the availability and quality of water; loss or closure of a major brewery or other key facility; its ability to maintain good labor relations; its ability to maintain brand image, reputation and product quality; and other risks discussed in its filings with the SEC, including its most recent Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Molson Coors does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
