Coca-Cola wants and has the 'right' to compete in the alcohol industry

A Coke It is one of the best known brands in the world and one of the most consumed beverages in several countries. Created in 1886 in the United States by pharmacist John Pemberton, Coca-Cola was initially sold as a medicinal drink that promised to relieve headaches and fatigue. Over time, the recipe was improved and today the drink is made up of a secret blend of flavors and ingredients.

What's new is that the company is moving beyond the experimentation phase when it comes to ready-to-drink alcoholic beverages. According to Coca-Cola CFO John Murphy, "There's a lot of white space [in alcohol]." “We believe we have the right to compete and play in that space, and we are exploring. We are exploring in several areas.”

Still on the subject, the owner of Coca-Cola and Jack Daniels, Brown-Forman, announced an agreement in late June 2022 for the distribution of a canned Jack & Coke cocktail. The product, which harks back to one of the favorite drinks ordered in bars for decades, contains about 5% alcohol and comes in sugar-free or sugar-free options.

In early 2022, Coca-Cola struck a deal with beer and wine maker Constellation Brands ( STZ ) to dispense the Fresh alcoholic beverage. For Murphy, Coca-Cola found "good traction" with the Top Five drink in the market, although it did not reveal sales figures.

The main intent for Coca-Cola's expansion into alcohol comes as its core portfolio of soft drinks and other beverages continues to see demand recover after the pandemic. The company said it expects to see full-year organic sales growth of 7% to 8%, above analyst estimates of 7.2%. Earnings are expected to increase by 4-5%.

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