Coca-Cola will enter the hard seltzer market with Topo Chico in 2021 as the low-calorie, low-sugar alcohol category’s volume grew by 200% in 2019 and is dominated by just two brands.
The Topo Chico hard seltzer will first be sold in select Latin American cities—coming to U.S. retailers in 2021.
Coca-Cola “is committed to exploring new products in dynamic beverage categories, including hard seltzer,” according to a statement on their website.
In 2017, Coca-Cola acquired Topo Chico, a sparkling mineral water popular in Latin America and Texas.
The company has yet to finalize distribution of the alcoholic drink in the U.S., a company spokesperson told the Wall Street Journal, noting tight regulation.
This will be the first time the beverage giant has distributed an alcoholic drink in the U.S. since it sold Wine Spectrum—a line of wines—in 1983, according to CNBC.
Coca-Cola’s earnings dropped by 28% in the second quarter of 2020, which they attribute to a decline in out-of-home sales, per CNBC.
That’s hard seltzer total sales by U.S. retailers in the 52 weeks leading up to July 11—with the category growing 241% in that period—according to Bump Williams Consulting via Wall Street Journal.