Global beverage giant Coca Cola is going to start selling alcoholic drinks in China!
Just now, Coca Cola announced in a circular that it will launch its first alcoholic beverage in the Chinese market, TOPO Chico hard seltzer. Xiaoshidai learned that the new product was officially put on sale in Coca Cola tmall flagship store on June 1, and will be launched into more e-commerce and new retail channels one after another.
Coca Cola launches alcoholic beverage in Chinese market for the first time
It is worth noting that this is a breakthrough attempt for Coca Cola to enter into China’s alcoholic beverage market, and also marks another important achievement of the company in promoting the strategy of “all kinds of drinks”.
The first alcoholic drink
Let’s take a look at this “new member” first.
Maybe some of them are already familiar with this brand new to the market – this Mexican bubble water brand was born in 1895, with a history of 125 years. In 2017, Coca Cola acquired TOPO Chico for us $220 million to expand its bubble water business. This has further expanded the business scope of this regional brand, making its popularity in the European and American markets continue to rise.
However, TOPO Chico hard soda sparkling wine, which is introduced into the Chinese market this time, is also an innovative product launched by Coca Cola only last year.
Topo Chico hard sous
According to reports, for a long time, TOPO Chico bubble water has been used to make alcoholic drinks. This “fate” with alcohol has also become the inspiration for the development of Topo Chico hard soda bubble wine. Topo Chico hard soda sparkling wine is based on gluten free alcohol and blended with soda sparkling water. It has the characteristics of low alcohol content (4.7% vol), low sugar and zero fat. It is only 29 calories per 100 ml and has natural fruit aroma.
Before its official introduction to China, this cross-border new product has been tested in Latin American and European markets. Xiaoshidai learned that in September 2020, Coca Cola took the lead in launching TOPO Chico hard soda sparkling wine in Latin America, and then went on sale in the UK and other places, and landed in the US market in April this year. This is also the first time that the company has launched alcoholic beverages in the US market since it sold wine spectrum’s wine business in 1983.
Now, this kind of Coca Cola’s alcoholic beverage has officially entered the Chinese market, becoming the latest “weapon” of the beverage giant in this summer’s beverage season.
“There are five flavors of Topo Chico soda sparkling wine in the world. This time, we introduce three flavors to the Chinese market, namely lemon and lime, strawberry and guava, and colorful pineapple.” Coca Cola China told xiaoshidai today that these three flavors have been widely praised by professional bartenders and are highly accepted by Chinese consumers.
The three flavors of Topo Chico hard Su sparkling wine listed in China this time
“In the future, we will list more flavors for consumers to choose.” The company said that the rapid landing of the product in multiple markets in a short period of time is the effective implementation of its “innovative” product strategy in the world, and Coca Cola will continue to strive to build products with “both global scale potential and local consumer insight”.
According to the product page of tmall, these new products highlight relaxation after work, party at home, outdoor activities and picnics. In terms of sales channels, Coca Cola China said to xiaoshidai that it would focus on the e-commerce platform where young people gather.
“TOPO Chico’s target consumers are young people aged 20-35, who pursue new things and are willing to explore different experiences.” Therefore, the new product will focus on communication with consumers on social media and digital platforms, and continue to introduce this “modern trendy drink which not only conforms to the consumption trend of low sugar and low calorie, but also integrates the brand’s wild style” to more young people, so as to deliver a “light burden and fashionable” lifestyle.
Enter new category
Let’s look at this “new category”.
In recent years, as a new kind of drink, hard seltzer is becoming more and more popular in European and American markets.
This kind of alcoholic beverage is usually a mixture of soda bubble water and wine. It has a steamy taste. The alcohol content is about 5 degrees. It often has fruit or sweet taste. It is considered as a “light food” in the wine industry.
As the calorie and alcohol concentration of these products are lower than that of beer, the “healthier lifestyle” behind them has attracted more and more consumers in the European and American markets, especially by many young people. Their preference for beer in social scenes such as music festivals and parties has gradually shifted to hard soda sparkling wine.
On the one hand, this attracted Coca Cola and other soft drink giants into the competition. On the other hand, Budweiser, Heineken, Miller and other beer giants also joined the competition of this segment.
For example, according to the snack generation, Heineken announced in September last year the launch of its new alcoholic soda brand pure pirana in Mexico and New Zealand, marking the company’s first entry into the category.
It is worth noting that in the Chinese market, although the recognition of hard soda sparkling wine is not high and it is still very small, some new local brands have appeared in this segment and won the favor of capital.
For example, in December last year, the Guangzhou based soda start-up brand, horsepower ton, received tens of millions of yuan in Angel round financing. In January of this year, during the tmall New Year’s festival, the local soda brand empty card qoka, which was born in 2020, increased 660% on a month on month basis, and ranked first in the category of tmall soda. At present, the brand has obtained strategic investment, such as sales promotion.
According to the analysis of market prospect and current situation of low alcohol wine industry in 2020 released by Academia Sinica, the market scale of domestic fruit wine industry will be about 231.5 billion yuan in 2019. In the past two years, the growth rate of consumption amount of low alcohol liquor market in China was more than 50%. During 618 last year, the growth rate of low alcohol liquor once exceeded 80%.
“As one of the sub categories of low alcohol liquors, hard soda sparkling liquors are still in an emerging stage in China, but we think there is great potential for market expansion.” Coca Cola China said today that as an entry-level alcoholic beverage, its low sugar, zero fat, low alcohol content and other properties cater to the modern young people’s pursuit of light burden lifestyle, which is expected to attract more and more young consumers.