Constellation Brands said it will produce Fresca Mixed, a new distinctive line of spirit-based, ready-to-drink cocktails that, CBrands says, “are well-aligned to a new of emerging consumer trends.” The announcement comes after the company reached a brand authorization agreement with Coca-Cola Co., which owns Fresca.
Fresca Mixed is expected to launch this year, starting with cocktails using real spirits and inspired by recipes created by Fresca fans from around the globe. The products will be produced and marketed by Constellation and distributed through Constellation’s three-tier distribution networks, leveraging the company’s consumer knowledge, brand-building capabilities, beverage alcohol expertise, and strong retail and trade relationships to secure national distribution.
“Fresca 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,” said Bill Newlands, Constellation’s president and chief executive officer.
Adult Alternative Beverages, including ready-to-drink cocktails, represents nearly an $8 billion segment projected to grow at a 15% to 17% CAGR over the next three years, with trusted consumer brands commanding a significant share of the market, according to Constellation Brands market research.
“One of the core tenets of our innovation strategy is a belief in the power of extending strong and trusted brands in thoughtful ways to bring to market unique products that resonate with consumers,” said Mallika Monteiro, Constellation’s chief growth, strategy, and digital officer. “This is an exciting agreement that allows us to continue expanding our premium portfolio in ways that deliver distinctive consumer value propositions that include things like more flavor, different alcohol bases, and functional benefits.”
Comment: Execution will be of prime importance. CBrands will have to be very careful to make sure that underage persons don’t confused Fresca Mixed with regular Fresca.