Introduction
The global beverage industry is witnessing rapid transformations, with consumers seeking convenience and innovation in their drink choices. Recognizing this trend, Coca-Cola and Bacardi, two iconic brands, have announced a strategic collaboration to launch a ready-to-drink (RTD) cocktail that combines Bacardi rum and Coca-Cola soda. This new product, expected to hit shelves in 2025, marks another milestone in Coca-Cola’s aggressive foray into the alcohol sector, leveraging the strength of their brand partnerships to capture a growing share of the RTD market.
The Announcement: A New Product on the Horizon
On September 17, 2024, Coca-Cola and Bacardi revealed plans for their upcoming product, Bacardi Mixed with Coca-Cola RTD. The new beverage will debut in Mexico and selected European markets before being introduced globally. The RTD cocktail represents a significant opportunity for both companies to expand their portfolios and cater to the rising demand for pre-mixed alcoholic beverages.
This is not the first time the two beverage giants have collaborated. In fact, their partnership dates back to 1900, when the famous Cuba Libre cocktail was invented, combining Bacardi rum, Coca-Cola, and lime. This new ready-to-drink version modernizes the concept, offering consumers a convenient and high-quality product that capitalizes on over a century of brand heritage.
Coca-Cola’s Strategy in the Alcohol Sector
Coca-Cola, best known for its iconic soft drinks, has been aggressively expanding beyond its traditional product lines. The company’s strategy to become a “total beverage company” has led it to explore new and diverse categories, including alcoholic beverages. Coca-Cola has already partnered with alcohol giants such as Molson Coors, Pernod Ricard, Constellation Brands, and Brown-Forman to establish a presence in the adult beverage market.
The partnership with Bacardi is the latest in this series of collaborations. A similar strategy was employed in 2022 when Coca-Cola partnered with Brown-Forman to launch a Jack and Coke RTD cocktail, combining Coca-Cola with Jack Daniel’s whiskey. The success of this product demonstrated the potential for leveraging Coca-Cola’s brand in the alcohol sector. The Bacardi Mixed with Coca-Cola RTD follows this successful blueprint and further solidifies Coca-Cola’s foothold in the booming RTD market.
Understanding the RTD Market: A Booming Sector
Ready-to-drink cocktails have surged in popularity in recent years, fueled by consumer demand for convenience, premium quality, and diverse flavor options. According to the Distilled Spirits Council of the U.S., the RTD category was the fastest-growing spirits sector in 2023, with sales of pre-mixed cocktails rising by 26.8% to $2.8 billion. This trend is expected to continue as consumers seek out quick and easy options for enjoying their favorite cocktails without the need for bartending skills or ingredients.
One of the major drivers behind the RTD market’s growth is the changing consumption patterns, particularly among millennials and Gen Z, who prioritize convenience, portability, and variety. Canned cocktails offer the perfect solution, providing a hassle-free experience without compromising on taste or quality. Coca-Cola and Bacardi’s new offering is well-positioned to meet this demand, tapping into a rapidly expanding consumer base.
Coca-Cola and Bacardi: A History of Collaboration
While the Bacardi Mixed with Coca-Cola RTD may seem like a novel product, the partnership between these two brands is deeply rooted in history. The Cuba Libre cocktail, which combines Bacardi rum and Coca-Cola with lime, was first created in 1900 in Havana, Cuba. The cocktail quickly became a symbol of celebration and freedom, eventually becoming a staple in bars and households worldwide.
By introducing a ready-to-drink version of this iconic cocktail, Coca-Cola and Bacardi are paying homage to their shared legacy while offering consumers a modern twist on a classic drink. Mahesh Madhavan, CEO of Bacardi, highlighted this connection, stating that the new RTD cocktail allows consumers to enjoy “one of the world’s most popular cocktails — first invented generations ago with BACARDÍ rum and Coca-Cola — in a high-quality, convenient format.”
Why the RTD Market is Key for Coca-Cola and Bacardi
For both Coca-Cola and Bacardi, the RTD market represents a significant growth opportunity. Coca-Cola’s foray into the alcohol category allows the company to diversify its offerings and tap into a consumer segment it previously did not serve. Bacardi, on the other hand, benefits from Coca-Cola’s global reach and brand recognition, allowing it to expand its footprint in the RTD sector.
One of the key advantages of this partnership is the strength of the brands involved. Both Bacardi and Coca-Cola are well-established, globally recognized names, making it easier to introduce the new product into multiple markets. Additionally, the popularity of rum and cola as a cocktail means that there is already a built-in demand for the RTD version, reducing the risk typically associated with launching new products.
The partnership also allows the companies to stand out in an increasingly crowded RTD market. With more players entering the space, brand recognition and product quality will be crucial factors in determining which products succeed. The combination of Bacardi’s premium rum and Coca-Cola’s iconic soda creates a compelling value proposition that sets the new RTD cocktail apart from competitors.
Looking Ahead: The Future of the Bacardi Mixed with Coca-Cola RTD
The initial launch of the Bacardi Mixed with Coca-Cola RTD in Mexico and select European markets is just the beginning. As the demand for pre-mixed cocktails continues to rise, it is likely that the product will expand to additional markets worldwide. Coca-Cola’s extensive distribution network and Bacardi’s strong presence in the spirits industry provide a solid foundation for the product’s global success.
Furthermore, the introduction of this RTD cocktail aligns with broader trends in the beverage industry. As consumers increasingly seek out convenient, high-quality alcoholic beverages, companies like Coca-Cola and Bacardi are well-positioned to capitalize on this shift. By offering a product that combines two iconic brands, they are providing a solution that resonates with consumers while driving growth in a key segment of the market.
Conclusion
The partnership between Coca-Cola and Bacardi to launch the Bacardi Mixed with Coca-Cola RTD represents a significant step forward for both companies. By leveraging their strong brand identities and tapping into the growing demand for pre-mixed cocktails, they are well-positioned to capture a significant share of the RTD market. As the product rolls out in Mexico and Europe in 2025, it is poised to become a popular choice among consumers seeking convenience, quality, and flavor in their alcoholic beverages. With the success of previous collaborations like Jack and Coke, this latest venture is likely to further solidify Coca-Cola’s position in the alcohol sector while continuing to expand Bacardi’s global reach.
