The Mexican sparkling water brand Topo Chico has been acquired by the Coca-Cola Company for $220 million. The newest addition to the Coca-Cola family can be attributed to plummeting soda sales and the increasing trend toward sparkling waters like LaCroix.
Topo Chico is particularly popular in Texas — the Lone Star State accounts for 70 percent of Topo Chico’s American sales. The head of Coca-Cola’s Venturing and Emerging Brands Unit, Matt Hughes, explained on Coca-Cola’s website why the soda conglomerate picked the Mexican-sourced brand:
“As we accelerate our evolution to a total beverage company, we’re investing in brands that are on trend. Topo Chico is a fast-growing brand with a lot of passion behind it and growth runway ahead. The premium, imported sparkling water category is growing double-digits, and Topo Chico has proven itself in a significant market — Texas — where it’s leading the category. It’s currently sold in Northern Mexico and in 35 states across the U.S., with approximately 70 percent of its U.S. sales coming from Texas. Our goal now is to extend its reach while preserving its heritage.”
Hughes also addressed how the bubbly water represented a natural lifestyle image, as is the current trend in food and drink:
“It’s more of a lifestyle brand than a hydration brand. From a portfolio perspective, Topo Chico is additive, we see it as incremental based on its very unique proposition and taste, which comes from its natural source.”
Hughes confirmed that the sparkling water will continue to be imported from its natural source in Cerro del Topo Chico and that, due to its massive popularity in Texas, the acquisition will hopefully create more demand for the fizzy liquid.
“We are going to thoughtfully expand the brand’s geographic presence — to create more ‘Texases.’ We’re currently designing our supply chain, distribution and marketing capabilities to meet what we know will be an exciting and increasing demand for the brand.”
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