Thursday 4 March 2021

Changes in consumption lead Coca-Cola to alcoholic beverages in Costa Rica

The trend for carbonated and alcoholic products, known as hard seltzer, began in 2013. In Costa Rica, Fifco already markets a brand

QCOSTARICA – Business challenges come for everyone: seeking to diversify its market, Coca-Cola entered the hard seltzer segment, and for the first time will produce and market alcoholic beverages.

Topo Chico is Coca-Cola’s foray into the Hard seltzer, spiked seltzer or hard sparkling water market segment. It has 100 calories and 4.7% alcohol. Photo: Courtesy of Coca-Cola

Hard seltzer, spiked seltzer or hard sparkling water is a type of highball drink containing carbonated water, alcohol, and often fruit flavoring.

- Advertisement -

William Segura, Manager of Public Affairs and Communications for Coca-Cola in Central America commented that for now, its product Topo Chico Hard Seltzer will be imported from Mexico.

In the future, the company say there is a possibility that it will be produced locally.

Coca-Cola’s product is in direct competition in Costa Rica with Adán & Eva, launched in 2019 by the Florida Ice, Farm & Co (Fifco), the beverage company that includes the cerverceria (brewery), water, juices, and bottler of Pepsi products, among others.

In the US the category was born in 2013, made by fermenting cane sugar; sometimes malted barley is used and in these seven years it has caused the birth of specialized companies and has also recruited some of the main producers of alcoholic beverages in the world, such as Miller Coors, with its Henry’s brand; Diageo, with Smirnoff Seltzer; AB InBev, with Bon & Viv and Bud Light Seltzer, or Constellations Brands, with Corona Seltzer.

- Advertisement -

The market leaders in the United States, the main consumer of these products, are Truly (from Boston Beer Company) and White Claw (from Mark Anthony Brands). They all range between 4% and 7% alcohol, and are around 100 calories.

Nielsen data, cited by Coca-Cola, found that in the United States the number of consumers of carbonated beverages with alcoholic content increased by 73% during 2019; that is, about 7.5 million people in that country. The category reached sales of $2.7 billion.

Fifco launched Adan & Eva in 2019, as a “light drink.” It has 80 calories and 4% alcohol. Photo: Courtesy of Fifco

And its success goes hand in hand with other trends. The age groups known as millennials and centennials, all under 40 years of age, favor products with low calories, free of allergenic ingredients (such as gluten) or preservatives, and with lower amounts of alcohol.

Hard seltzers comply with offering a product with a lower caloric content and with other peculiarities, such as being suitable for a gluten-free diet, although their alcoholic content is similar to that of the most popular beers.

For example, while an Imperial beer (Fifco) has 4.5% alcohol, Topo Chico has 4.7%. An Adán & Eva and an Imperial Ultra share 4% alcohol content.

- Advertisement -

The growing trend for hard seltzers comes amid less favorable conditions for soft drinks and spirits, which intensified this year due to the pandemic and the closure of traditional channels for their consumption, such as restaurants and bars.

Euromonitor International data for store channels such as supermarkets (purchase for later consumption) and restaurants or food outlets (purchase for consumption on site), show that the country experienced a contraction of 20.4% in sales of carbonated or soft drinks between 2015 and 2020, and although recovery is expected for 2021, the projection is lower than what was recorded in 2015.

 

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

Ricohttp://www.theqmedia.com
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Consumer confidence improves slightly in early 2021

QCOSTARICA - Consumer pessimism decreased slightly for February 2021, compared to...

Fifco dismisses 500 employees, 10% of its payroll in Costa Rica

QCOSTARICA - Florida Ice & Farm Company (FIFCO), the Costa Rican...

MOST READ

In a week, Costa Rica off and on the list of risk countries in Spain for covid-19

QCOSTARICA - Spain had excluded Costa Rica from the list of risk countries to enter by air for presenting a negative covid-19 test (RT-PCR,...

Costa Rica expects to receive $2.5B in international loans

QCOSTARICA - Borrowing its way out of the current financial crisis seems to be objective for the Carlos Alvarado government. Obtaining about US$2.5 billion this...

Tamarindo and Sámara received recognition for Tsunami preparedness

QCOSTARICA - For their preparedness to face tsunamis, the communities of Tamarindo and Sámara were recognized by the Junta Nacional Tsunami Ready de Costa...

ESPH charges the family for electricity for January and February even though fire destroyed their home in December

QCOSTARICA - Despite losing their home entirely in December, a Heredia received electricity bills from the Heredia Public Service Company (ESPH) for January and...

Former Soviet leader Mikhail Gorbachev celebrates his 90th birthday

Q REPORTS - The former leader of the Soviet Union and 1990 Nobel Peace Prize winner, Mikhail Gorbachev, who has been self-isolating to protect...

South Korea company to conduct Costa Rica rail feasibility study

QCOSTARICA - Korea National Railway (KR) will conduct a feasibility study for the restoration of 98.3km of Costa Rica’s San José-Puntarenas rail line. The study...

US Latin America Policy Won’t Change Much, New ‘Thaw’ With Cuba Can’t be Ruled Out,

Q REPORTS - U.S. President Joe Biden is expected to outline his vision of Washington's Latin America policy at the next Summit of the...

The Quijongo!

QCOSTARICA - The quijongo is now in very good health thanks to the care of the people of Guanacaste, who are dedicated to protecting...

Carlos Alvarado: “No Growth and Poverty Reduction Without Economic Stability”

QCOSTARICA - The International Monetary Fund (IMF) approved a $1.7 billion arrangement to support Costa Rica’s recovery and stabilization from the economic damage caused...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.