By Tonya Garcia
Molson Coors Beverage Co. announced another partnership with Coca-Cola Co. on Tuesday: the beverage giants are launching a version of the Simply brand of juices with alcohol.
Simply Spiked Lemonade will come in a variety pack this summer that will also include other flavors like strawberry lemonade and watermelon lemonade. Each flavor will be made with fruit juice and contain 5% alcohol by volume and 170 calories. Some flavors will be available as a standalone purchase.
Molson Coors /zigman2/quotes/205165133/composite TAP +0.06% and Coca-Cola /zigman2/quotes/209159848/composite KO +0.27% have previously teamed up for Topo Chico Hard Seltzer, with a margarita version coming in 2022 and expansion in Canada on the way.
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Coca-Cola has also partnered with Corona beer parent Constellation Brands Inc. /zigman2/quotes/207737284/composite STZ -0.67% on an alcoholic version of the Fresca soft drink.
Coca-Cola is diving deeply into the “adult alternative beverage” category, which includes ready-to-drink cocktails. The category’s market has reached nearly $8 billion and is expected to have a compound annual growth rate of 15% to 17% over the next three years, according to data provided by Constellation Brands.
Simply is a billion-dollar brand and Coca-Cola’s second biggest after the namesake soda brand. Molson Coors provided data showing that flavored alcohol beverages are a nearly $2 billion category that experienced 10% growth in 2021.
Coca-Cola stock has gained 22.8% over the past year. Molson Coors shares have fallen 2.9%. And the benchmark Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.06% has gained 11.1%.