Beverage giant Coca-Cola Co (NYSE:KO) is continuing to pursue new sectors for growth, which include adding to its partnered alcoholic beverages.
What Happened: Coca-Cola announced a new exclusive agreement with Molson Coors Beverage Co (NYSE:TAP) to launch a new brand of spiked lemonade using the Simply brand. Simply is the number-one chilled juice brand in the U.S., according to Tuesday’s announcement.
Simply is the second-largest brand for Coca-Cola in the U.S. after its namesake carbonated beverage. Simply is a billion-dollar brand and has strong brand awareness, according to the company.
The new Simply Spiked Lemonades will be released to the market in time for summer, according to the companies.
A variety pack will include Simply Spiked Lemonades with flavors including strawberry lemonade, watermelon lemonade, blueberry lemonade and a signature lemonade. The beverages will be offered in 12 packs of slim cans and 24-ounce stand-alone cans.
Molson Coors will produce, distribute and market the Simply Spiked Lemonades as part of the partnership with Coca-Cola.
Related Link: Molson Coors Continues Hard Seltzer Push With Coca-Cola, Topo Chico Deal
Why It’s Important: The new deal for spiked lemonades between Coca-Cola and Molson Coors continues a partnership launched previously for Topo Chico Hard Seltzer.
“With this momentum, we are excited to expand our relationship with products inspired by another one of our most valuable brands: Simply,” Coca-Cola Chief of New Revenue Streams North America Dan White said. “We believe people will be excited to try this delicious beverage when it arrives on shelves later this year.”
Molson Coors said there is a huge opportunity to use the well-known Simply brand in the alcohol space.
“Over the past two years, we’ve seen success by shaking up existing categories with new brands that have clear, compelling points of difference, like Coca-Cola’s Topo Chico Hard Seltzer, Vizzy Hard Seltzer and ZOA Energy Drink,” Molson Coors’ Chief Marketing Officer Michelle St. Jacques said.
Along with deals with Molson Coors, Coca-Cola recently announced a partnership with Constellation Brands, Inc. (NYSE:STZ) to create alcoholic beverages based on its Fresca soft drink. The partnership will see a ready-to-drink cocktail mixer called Fresca Mixed hit the market later in 2022.
As sales of carbonated beverages faced slowdowns over recent years, Coca-Cola has pivoted to faster growth categories such as energy drinks, sports drinks and now alcoholic beverages. A series of acquisitions and partnerships could help the company continue its future growth.
Photo: Courtesy Molson Coors
