Molson Coors Beverage Company’s previously teased spirits-based Topo Chico offering is now a reality.
Topo Chico Spirited – a line of 5.9% ABV ready-to-drink canned cocktails (RTD) – launched today in 22 states, including Washington, D.C. The offering is the first spirits-based, bev-alc offering out of Molson Coors’ Topo Chico licensing agreement with The Coca-Cola Company.
Topo Chico Spirited is available in three single-flavor 4-packs: Tequila & Lime, inspired by Texas’ ranch water cocktail; Tequila & Grapefruit, inspired by a Mexican paloma; and Vodka & Lemon, inspired by a southwest Chilton cocktail. While the partnership’s first iteration, Topo Chico Hard Seltzer, is packaged in 12 oz. slim cans, Topo Chico Spirited is available in traditional 12 oz. cans, with 120 to 130 calories per can.
“Topo Chico Spirited is a bar-quality cocktail inspired by bartenders across America whose mixer of choice is already Topo Chico Mineral Water,” Joy Ghosh, Molson Coors VP of marketing, above premium flavor, said in a press release. “We’re making it easy for people to entertain their friends on their backyard patios with a great tasting canned cocktail crafted with filtered sparkling water, real tequila blanco or distilled vodka that’s ready to drink so needs minimal effort.”
Molson Coors first teased the RTD iteration in September during the company’s distributor convention in Nashville. During the meeting, Matt Escalante, Molson Coors’ VP of marketing for hard seltzers, assured distributors that Topo Chico Spirited would not be “a replacement for our hard seltzer,” but rather a “premium way to complete our existing portfolio and drive trade up.”
Molson Coors’ new offering comes as spirits-based hard seltzers continue to record exponential growth, increasing dollar sales +88.5% year-over-year (YoY) in multi-outlet plus convenience channels (last 52 weeks, ending April 2), according to market research firm Circana (formerly IRI). Similarly, volume for the sub-segment increased +88.4% YoY in the period. In the one-week period ending April 2, spirits-based hard seltzers recorded nearly $8.7 million in dollar sales, a +106.7% increase YoY and a 9.1% increase week-over-week.
The spirits-based RTD segment has been primarily dominated by E. & J. Gallo’s High Noon Sun Sips, which increased dollar sales +93.7% YoY and volume +81% in Circana-tracked channels through April 2, making it the No. 7 spirits product by dollar sales.
Topo Chico Hard Seltzer also continues to record dollar sales gains, despite the slowing malt- and sugar-based hard seltzer market. In the last 52 weeks ending February 25, Topo Chico Hard Seltzer increased dollar share of the beer segment +0.4% in total U.S. xAOC plus liquor plus convenience channels, tracked by market research firm NIQ (formerly NielsenIQ). The brand increased dollar sales +107% YoY and volume (measured by case sales) +99% in the period.
The expansion of the Topo Chico brand family is part of Molson Coors’ 2023 innovation plan of continuing the momentum of its 2022 launches, including Simply Spiked Lemonade, a flavored malt beverage (FMB) made through another agreement with Coca-Cola, Molson Coors CEO Gavin Hattersley shared during the company’s Q4 earnings call with investors in February.
“The way we’re looking at our innovations is we’re looking at flavor more broadly,” Hattersley said. “So, it includes seltzers, but it also includes FMBs and RTDs. And when you look at those segments together, we grew more share than any other supplier in the last 52 weeks. … So, we’ve still got lots of upside with our existing innovations that we just launched.”