Coca-Cola is introducing Topo Chico Sabores, a new line of premium sparkling water beverages crafted with fruit juice and herbal extracts. With this addition, Coca-Cola is expanding the Topo Chico brand into the non-alcoholic premium beverage category, providing consumers with a luxurious drinking experience.
Coca-Cola, headquartered in Atlanta, has been actively driving innovation in Topo Chico by introducing new flavors and product extensions, such as its partnership with Molson Coors to offer an alcoholic version. These efforts aim to provide consumers with a wider range of options and further boost the popularity of the beverage. With its ongoing commitment to Topo Chico, Coca-Cola is hopeful that the brand’s sales could exceed $1 billion in the future.
This month, Topo Chico Sabores, featuring three flavors – Blueberry, Tangerine, and Lime, will be launched in stores. This product offering mirrors a century-old Topo Chico beverage, indicating the brand’s commitment to honoring its history while catering to evolving consumer preferences.
“The most interesting piece about that is how the brand has sort of transcended the sparkling mineral water space, has become bigger than just the category itself,” Dan White, Coca-Cola’s Chief of new revenue streams, said in an interview. “And that’s where really the growth from Topo Chico comes from and what we’re really leaning into.”
In 2017, Coca-Cola acquired Topo Chico for an estimated $220 million, marking a significant move to expand its beverage portfolio and decrease its reliance on sugary drinks. This acquisition was particularly meaningful as Coca-Cola had a long-standing partnership with Topo Chico for nearly a century prior to the purchase.
Following the acquisition, Coca-Cola has utilized its extensive distribution network to enhance Topo Chico’s reach throughout the United States. This effort has helped to transform the once regional favorite into one of the most highly regarded brands in its category. Moreover, Topo Chico has benefited from the growing trend among consumers who seek fizzy drinks that offer a refreshing taste without excessive sugar.
After its acquisition by Coca-Cola, Topo Chico’s sales have witnessed a significant surge due to the brand’s expanded distribution across the United States. As per Nielsen data shared by Coca-Cola, Topo Chico’s market share in the sparkling water category rose from 20% to 35% between 2017 and 2021, underscoring the brand’s increasing popularity among consumers.
“We’ve really done a very, very good job of allowing the brand to become what consumers want it to be,” White said.
According to research, consumers view Topo Chico as more than just bottled mineral water sourced from Mexico. Its growing popularity has prompted Coca-Cola to explore opportunities to expand the brand into other categories. With a high level of demand and growing consumer interest, executives like White are optimistic that Topo Chico has the potential to become a $1 billion brand, despite being part of a beverage giant known for products like Diet Coke, Body Armor, and Dasani.
“It’s on a trajectory to do that,” White said. He declined to predict when it could reach the $1 billion level.
Coca-Cola has reported that the sales of flavored sparkling water alone have reached around $300 million in the United States retail market. The company anticipates that this upward trend will continue in the foreseeable future.