The company announced it is releasing Top Chico Hard Seltzer in select cities in Latin America later this year and in the U.S. in 2021.
"Topo Chico Hard Seltzer is an experimental drink inspired by Topo Chico sparkling mineral water, which has been popular with many mixologists," the company said in a statement.
The offering will be Coca-Cola's first entry into the alcoholic beverage market in the U.S. However, Coca-Cola made its debut in alcoholic drinks globally in Japan in 2018.
The beverage industry is seeing massive growth in the hard seltzer category, according to IWSR, which is one of the reasons why Coca-Cola doesn't want to be left out.
Other beverage companies like Anheuser-Busch InBev (BUD) - Get Anheuser-Busch InBev SA/NV Sponsored ADR Report and Constellation Brands (STZ) - Get Constellation Brands, Inc. Class A Report have already included hard seltzer in their offerings.
Coca-Cola posted stronger than expected second quarter earnings last week but its revenues declined as movie theaters, stadiums, and others remain closed due to the ongoing coronavirus pandemic.
"I'm proud of the people of the Coca-Cola system as we continue to adjust and accelerate our strategies in this fast-changing landscape," said Coke's CEO James Quincey. "We believe the second quarter will prove to be the most challenging of the year; however, we still have work to do as we drive our pursuit of 'Beverages for Life' and meet evolving consumer needs."