Coca-Cola (NYSE:KO) knows what people like. After buying all the major food, snacks and soft drink companies around the world, Coca Cola decided to enter alcohol business.
This is where the money is-addiction.
Hard Seltzer is the legendary drink that Coca-Cola could soon bring to the market. According to The Grocer , the company will probably set up a subsidiary for the launch , first hitting the UK booze market, with a brand called EH Canning Co. When the product will be available is not yet clear.
Hard Seltzer is a mixture of water, fermentation alcohol and natural flavors such as mango, cherry or lime. The alcohol content is between four and six percent. The trendy drink is particularly popular with 20- to 35-year-olds as an alternative to higher-calorie products such as wine and beer.
In the United States, Hard Seltzers quickly became an absolute growth market. This year, sales are expected to increase to $ 3.5 billion, according to Jefferies analysts. In 2024, revenues are expected to be $ 6.5 billion.
Coca-Cola stock lost $10 year-to-date and is having a hard time bouncing back to its pre-covid19 share price.
If the alcohol gamble pays off KO stock might go beyond $60 in 6 months from now.