Benzinga | Sep 22, 2020 04:46AM EDT

Coca-Cola's First Alcoholic Drink Since The 80s To Debut Early Next Year: CEO

During a discussion with Mad Money show host Jim Cramer, Chief Executive Officer of Coca-Cola Co (NYSE:KO) James Quincey cleared the air about its new product. Quincey clarified that the company's Hard Seltzer drink is estimated to be released sometime in the first half of 2021.

The company has been entirely engaged in non-alcoholic beverage concentrates and syrups in the last four decades and this would be its first attempt to create a product line of Hard Seltzers in the United States since the early 80s.

What Happened: Coca-Cola plans to launch its alcoholic beverage under its Topo Chico brand. According to CNBC, the initial launch will be made in Mexico, followed by the U.S. launch.

The Brazil launch is expected sometime later this month. In 2018, Coca-Cola also launched Lemon-Do -- and alcoholic drink in Japan.

In 2017, Coco-Cola acquired the Mexican company Topo Chico for $220 million.

Why Does It Matter: CNBC cited research by Bump Williams Consulting Co., which estimated a Hard Seltzer sales figure of $3 billion in the U.S for the 12 months ended in mid-July.

Constellation Brands Inc (NYSE:STZ), which produces Corona beer, also ventured in the fast-growing Hard Seltzer market this year. At the time, Corona Hard Seltzer gained a 6% IRI market share in the U.S. and was ranked as the fourth major player.

Price Movement: After a 2.68% drop during trading hours, Coca-Cola marginally rose 0.26% to end the extended trading hours at $49.22.

Related Links:

Pepsi Launches A Sleep Beverage: What You Need To Know About Driftwell