The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

The Coca-Cola Company has partnered with Sazerac, marking a significant shift in its approach to the rapidly growing alcoholic ready-to-drink (RTD) segment.

The collaboration will see Sazerac take over the production and distribution of several key brands under Coca-Cola's Red Tree Beverages umbrella, such as Fresca Mixed, Fresca Hard and Minute Maid Spiked.

As the RTD category continues to surge in popularity, Coca-Cola aims to leverage Sazerac's extensive production capabilities and established sales network to enhance brand visibility and market penetration.

Dan White, chief of new revenue streams at Coca-Cola, said: "The alcohol RTD category is one of the fastest-growing segments in beverage alcohol today – and Red Tree Beverages continues to be at the forefront with innovative, high-quality brands".

White also recognised that Sazerac has proven their "capability,coll reach and commitment to the alcohol RTD business".

Lourdes 'Lou' Grill, president of Red Tree Beverages, noted the importance of this collaboration in driving innovation for the next generation of legal drinking age consumers.

“Our portfolio of brands and relationships will continue to bring innovation to the forefront,” she added, highlighting a commitment to maintaining strong ties with independent licensed distributors as a key component of their strategy.

The partnership is set to capitalise on the momentum of Fresca Mixed, while also introducing Fresca Hard, a new flavoured malt beverage boasting only 99 calories and zero sugar. This product is anticipated to launch early next year.

Key points of the transition include:

Strategic growth alignment: The partnership will combine Red Tree Beverages' marketing and innovation strengths with Sazerac's production scale and distribution expertise.

Commitment to the three-tier system: Coca-Cola reaffirms its dedication to working with independent licensed distributors, which it views as essential to its success in the alcohol sector.

Portfolio expansion: The collaboration aims to build on the existing success of Fresca Mixed while advancing new product innovations.