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How Coca-Cola picks its RTD partners

Since Brown-Forman partnered with Coca-Cola to create a canned ready-to-drink (RTD) Jack Daniel’s and Coke in late 2022, we’ve seen a plethora of soft drink and spirits brand collaborations. But how do they work?

Jack Daniel's Coca-Cola cans
Jack Daniel’s and Coca-Cola RTD cans were released in 2022
James Davies, Senior Director, Alcohol Ready to Drink at The Coca-Cola Company
James Davies

James Davies, senior director for alcohol ready-to-drink (ARTD) at The Coca-Cola Company, says: “We always develop our portfolio to be consumer-centric. This means we offer drinks, flavours and brands that consumers know and love.”

Being a big name – if not the biggest name – in its field means attracting some of the biggest names in other industries. “When it comes to ARTDs, we have partnered with some of the world’s most iconic spirits brands to produce drinks that we know consumers want – and in some cases already have as part of their repertoire,” he explains.

“Take Jack Daniel’s & Coca-Cola, for example: it’s one of the world’s most famous bar calls and an iconic mixed drink that can now be enjoyed at home or with friends in a convenient format.”

While the category has taken off in recent years, Davis adds that ARTDs have been around for “two decades in some markets”. “What is different today is that ARTDs are premiumising and maturing – and there is a lot more variety and choice today, which is exciting.

“ARTDs are becoming a genuine alternative to traditional alcohol categories, with flavour and convenience being large drivers of consumption. There’s a little bit of something for everyone who likes a drink and is looking for something ready to drink other than beer, wine, or full-strength bottled spirits.”

Coca-Cola’s ARTD portfolio includes the Jack Daniel’s serve, Absolut Vodka & Sprite, and Bacardí Mixed with Coca-Cola, which will be released this year. Davies won’t be drawn on whether this rules out future collaborations with brands in the same categories – ie, another whiskey, vodka or rum brand. “We’re confident in the current portfolio,” he explains. “These are consumer-centric propositions that truly meet a demand using brands that adult consumers know, love, and trust.

Absolut Vodka Sprite
Absolut Vodka Sprite is canned at 5% ABV

“At the same time, we’ve successfully launched Schweppes Mixed with Vodka in Brazil. We look forward to growing these brands together with our partners, but at the same time we are always looking at the latest consumer trends to evaluate what is the right proposition for the marketplace.”

A whole new field

Mixing two drinks together might not seem particularly innovative, but getting two giant corporations aligned is one feat in itself, and entering the alcohol field when it’s not your bread and butter is another. “The category is very different to our core,” explains Davies. “We know that alcohol plays a role in socialisation, celebration and occasion in many of the markets in which we operate today and has done so for hundreds and in some cases thousands of years.

“Today, while most people who drink alcohol do so responsibly, we also know that if consumed irresponsibly or excessively, alcohol can cause harm. We therefore recognise the unique challenges that we at The Coca-Cola Company face in entering this beverage category, and we know that our work in alcohol brings added responsibilities for us, and we take these seriously.”

He explains that Coca-Cola’s approach is grounded in its Global Policy on Alcohol Responsibility, and Responsible Alcohol Marketing Policy, which determines how it innovates, markets, and sells alcohol brands.

A key part of the policy addresses the fact that Coca-Cola’s regular audience includes those under the legal drinking age. “As a company, we are committed to ensuring there is a clear differentiation between our alcohol brands and non-alcohol brands,” stresses Davis.

What’s new

Will there be new ARTD products on the horizon? Davies doesn’t expect any soon. “Our focus now is on growing the existing brands together with our partners. We are excited about the portfolio and plans already in place.”

It’s interesting to note that Coca-Cola’s ARTDs, as well as those of its competitors, such as Pepsi’s Captain Morgan serve, have all been canned, rather than bottled. “One of the things we do well at Coca-Cola is leveraging packaging and format innovations to balance consumer needs with business objectives,” he explains.

“We do this to ensure we are being sustainable and remaining competitive in a dynamic market. It’s no different with ARTDs – we aim to provide convenience, portability, and portion control – all of which are important factors in driving consumer satisfaction and loyalty.”

Aluminium has been taking over the spirits industry of late, with glass and plastic bottles being ditched in favour of metal alternatives, which are lightweight and infinitely recyclable.

That doesn’t mean bottles are permanently out of the question though, with Davies explaining that Coca-Cola uses local insights to tailor products to each market. “A key part of that is ensuring that our drinks are in the right formats to deliver convenience for the consumer and availability at multiple channels to make it easy for consumers to find and enjoy them.”

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