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Coca-Cola and Constellation Brands team up to create alcoholic Fresca cocktails

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Coca-Cola Co. Fresca soda bottles move on a conveyor belt at Swire Coca-Cola’s West Valley City bottling plant, Utah. This was Friday, April 19, 2019.

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Coca-ColaCorona and Corona Brewer Constellation BrandsFresca soda and Fresca co-create alcoholic cocktails.

It is the latest partnership between beverage companies to blur the lines between drink categoriesIn the pursuit of growth. Manufacturers of nonalcoholic beverages are expanding their product lines as soda consumption declines. There are new markets for regulated beverages, such as CBD-infused drinks. Coke’s competitor PepsiCoHard Mtn Dew will be available with Boston BeerIn February. Coke is making its second alcohol-related venture since 1980. the recent success of its Topo Chico Hard Seltzer launch in partnership with Molson Coors Beverage.

Fresca Mixed Cocktails have been on the U.S. markets since 1958. There has been many changes and reformulations, but this move will mark the company’s most ambitious yet. Fresca Mixed cocktails will be available in the U.S. starting this year.

“The Coca-Cola Company’s FRESCA brand is not only trusted by consumers, but also directly delivers on consumer preferences for refreshment, flavor, and convenience – attributes that also play well within beverage alcohol and where we can leverage our expertise,” Constellation CEO Bill Newlands said in a statement.

Constellation will market, produce and distribute cocktails via its three-tier distribution network.

Coke claims that Fresca has been growing in popularity and is now the most popular soda brand in America. Its grapefruit flavour makes it an attractive choice for cocktail mixers.

They are also jumping on Fresca’s demand and aiming to capture a piece of growing spirit-based canned cocktails market. According to IWSR Drinks Analyse, the U.S. consumed canned cocktails in 2020 increased by 52.7% over the year before. This represented 6.9% of all alcoholic ready-drink volume. Constellation has a range of spirits, including Svedka vodka as well as Casa Noble Tequila.

After Constellation’s latest earnings announcement Thursday morning, shares of Constellation rose less than 1% premarket. Wall Street was pleasantly surprised by its revenue and quarterly earnings estimates. In premarket trading, Coke stock was about flat.

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