Coca-Cola, the iconic brand synonymous with refreshing sodas, is making waves in the alcohol industry. For over a century, the company has dominated the soft drink market, but now it is pivoting towards a new frontier—alcoholic beverages. This bold move aligns with the growing trend of premiumisation, as more consumers are opting for high-quality, ready-to-drink (RTD) alcoholic options.
By 2025, a new generation of adult consumers is emerging, moving away from traditional beer, wine, and spirits in favor of drinking less but drinking better. The global RTD market is expected to hit $100 billion by 2030, and Coca-Cola is positioning itself to capitalize on this booming sector.
Coca-Cola's journey into the world of alcohol began in 2018 with the launch of Lemon-Dou, a lemon-flavored alcoholic beverage that became a hit in Japan. This was Coca-Cola's first foray into alcoholic drinks, and it paid off. Since then, the company has expanded its reach, collaborating with industry giants such as Bacardi, Absolut, and Brown-Forman, to craft premium, market-specific alcoholic beverages that cater to a wide range of consumer preferences.
Mariana Branco, ARTD category lead for Coca-Cola Europe, explains that the company is not just creating alcoholic drinks; it's shaping the future of beverage innovation. "The category has evolved in recent years as adult consumers look for alternatives to traditional categories such as beer, wine, and spirits," Branco says. "We see ourselves well-placed to compete and grow in this space, given our expertise in flavor innovation and responsible brand-building."
One of the key factors driving Coca-Cola's success in this new arena is its commitment to creating premium products that maintain the brand's legacy while appealing to evolving tastes. Through collaborations with well-known spirits brands, Coca-Cola is introducing high-quality RTD cocktails that align with the broader industry trend towards premium offerings.
"By focusing on flavor, convenience, and control, we are responding to the growing demand for adult beverages that are both high-quality and easy to enjoy," Branco adds.
The RTD market, especially in Europe, is growing rapidly. For example, in Germany, where regulatory environments differ, RTDs often have a higher alcohol by volume (ABV) than in other European markets. Coca-Cola adapts its products accordingly, ensuring that taste and quality remain top priorities.
Premiumisation is a key trend shaping the alcoholic beverage industry. As consumers become more discerning in their choices, Coca-Cola is capitalizing on this shift by offering products with superior ingredients and unique flavor profiles. Its collaborations with Bacardi and Absolut allow the brand to offer premium RTD options that cater to the tastes of sophisticated consumers looking for low-alcohol refreshment.
Despite venturing into the alcohol market, Coca-Cola ensures that its new alcoholic offerings remain aligned with its core brand identity. The company emphasizes its long-standing commitment to creating products that consumers love and trust, while ensuring that its marketing campaigns for alcoholic beverages are distinct from those for its non-alcoholic products.
Coca-Cola's expansion into alcohol also highlights its focus on responsible marketing. The company has a comprehensive Responsible Alcohol Marketing Policy (RAMP) in place to ensure that its alcohol brands are marketed only to adults of legal drinking age, with an emphasis on promoting moderation and responsible drinking.
As the RTD market continues to grow, Coca-Cola is poised to play a significant role in shaping the future of alcoholic beverages. With its commitment to quality, innovation, and responsibility, the brand is well-positioned to become a leader in this exciting new category.
