Molson Coors Beverage Company has expanded its agreement with Coca-Cola to develop and commercialize a brand of alcohol drinks inspired by chilled juice brand, Simply.
The deal follows Coca-Cola tasking Molson Coors to manufacture and distribute its Topo Chico Hard Seltzer that launched in the US last year.
“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,” said Michelle St. Jacques, Molson Coors’ Chief Marketing Officer.
“Now, we have a huge opportunity to leverage the power of Simply – a brand known for real juice and big flavour – to disrupt the full-flavour alcohol segment in a way that’s never been done before.”
This summer, Molson Coors will start by launching the Simply Spiked Lemonade variety 12-pack, inspired by some of the juice brand’s non-alcoholic products, including Strawberry Lemonade, Watermelon Lemonade, Blueberry Lemonade, and Signature Lemonade.
The Simply Juice range is currently Coca-Cola’s second-largest US brand in terms of net revenue ($1bn+). The product is already used to mix with alcohol for cocktails, which is said to have inspired the development of the new ready-to-drink lineup.
“The Coca-Cola Company and Molson Coors have a thriving relationship in North America. The proof is in the success of Topo Chico Hard Seltzer’s national expansion and the introduction of Topo Chico Ranch Water Hard Seltzer,” said Dan White, Chief of New Revenue Streams, Coca-Cola North America Operating Unit.
“With this momentum, we are excited to expand our relationship with products inspired by another one of our most valuable brands: Simply. We believe people will be excited to try this delicious beverage when it arrives on shelves later this year.”
Molson Coors will produce, distribute and market Simply Spiked Lemonade in the US as part of the agreement with Coca-Cola. The move is part of the brewer’s revitalization plan, which includes expanding its offering beyond beer.
NAM Implications:
- Molson Coors Partners and Coca-Cola are clearly poised ‘to disrupt the full-flavour alcohol segment in a way that’s never been done before.’
- Time for members of the full-flavour alcohol segment to reassess relative competitive appeal…
- …and take appropriate action.
- If only to commence discussions with Coca-Cola’s rivals?
