Multinational beverage giant, Coca-Cola, has established an alcohol subsidiary called Red Tree Beverages, dedicated to the production and distribution of alcoholic beverages.

The bold venture marks Coca-Cola’s foray into the alcohol industry, signaling a strategic shift for the renowned soft drink manufacturer.

While Coca-Cola has predominantly been associated with non-alcoholic beverages for over a century, the company recognizes the need to diversify its offerings and adapt to changing market dynamics.

With Red Tree Beverages, Coca-Cola intends to target consumers seeking unique and flavorful alcoholic beverages that align with their preferences and lifestyles.

Red Tree Beverages aims to leverage Coca-Cola’s brand recognition, distribution network, and industry expertise to tap into the growing market for alcoholic beverages.

The newly formed subsidiary plans to focus on developing and marketing a range of innovative alcoholic products to cater to evolving consumer preferences and trends.

James Quincey, CEO of The Coca-Cola Company, said: “Red Tree Beverages represents a significant milestone in our company’s history. We recognize the changing consumer landscape and believe that this new venture will allow us to better serve our customers and meet their evolving demands.”

“We are committed to delivering high-quality, responsibly made alcoholic beverages that build upon our heritage of great taste and innovation.”

Industry experts speculate that Coca-Cola’s entry into the alcohol market could create significant competition for existing alcoholic beverage manufacturers.

With its extensive distribution network and brand recognition, Coca-Cola has the potential to disrupt the sector and gain a substantial market share.

Red Tree Beverages is set to commence operations in the coming months, with an initial focus on select markets before gradually expanding its reach globally.

Coca-Cola, in partnership with Brown-Forman-owned Jack Daniel’s, already has a quintessential Jack & Coke cocktail that is commercialized in 12-oz. cans (7% ABV). The company also promised to make available a Coca-Cola Zero Sugar version of the drink soon.

Inspired by one of the more popular “bar-calls,” this new canned cocktail combines Jack Daniel’s Tennessee Whiskey and Coke.

In the United States, Coca-Cola has several experiments underway. In partnership with the Molson Coors Beverage Co., Chicago, the companies have introduced Topo Chico Hard Seltzer and soon will introduce Simply Spiked, an alcoholic version of Coca-Cola’s Simply brand.

The company is also working with Constellation Brands, Inc. on the Fresca branded mixed cocktails, the brand of spirit-based, ready-to-drink cocktails.

Outside of the United States, Coca-Cola has two other alcoholic beverage experiments underway. In Japan, the company is manufacturing and markets Lemondo, a lemon-flavored alcoholic beverage. The product was launched in 2019 and Mr. Quincey said the competitive situation in Japan prompted the test.

The Lemondo experiment has been expanded to the Philippines where Mr. Quincey said it’s doing well.

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