Coca-Cola Enters RTD Alcohol Market With Bacardi

Coca-Cola has entered Australia's alcoholic ready-to-drink (RTD) market through a new partnership with Bacardi, marking a significant shift in its business strategy.
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The company is expanding beyond soft drinks, aiming to become a complete beverage provider while responding to tough competition and changing consumer tastes in Australia's $27.2 billion alcohol industry.

Australia serves as a key testing ground for this move. It is currently the third-largest and one of the most advanced RTD markets in the world. According to Euromonitor, the category has grown by 15% over the past year. Along with the Bacardi partnership, Coca-Cola now has strategic control of the local RTD brand Billson’s, which it acquired in January. These developments are part of the company's broader goal to increase both volume and innovation within the category.

Coca-Cola's local strategy mixes global brand strength with a dual-channel approach. This includes high-profile collaborations like Bacardi, along with growing investments in owned brands. Although RTDs currently account for a small portion of the company’s total volume, they are seen as having strong business potential. By pairing Coca-Cola with Bacardi, a globally recognised spirit, the company aims to increase visibility and secure retail presence.

The rapid expansion of the local RTD industry has not gone unnoticed. Consumer interest in "better-for-you" options such as hard seltzers has encouraged many new players to enter the market. Coca-Cola believes its core brand strength and focus on innovation offer a competitive advantage. Around 70% of RTD products on the market today did not exist five years ago, highlighting the pace of change and the range of opportunities available.

To support the launch, Coca-Cola is focusing on building awareness, with 2400 product sampling events planned across the country. The Bacardi and Coca-Cola RTD draws on a long-standing mix that dates back to 1900 in Havana, while also appealing to growing consumer demand for convenience and authenticity. If successful, this initiative could lead to similar product introductions in other developed RTD markets.

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