Alcoholic cocktails will be the new beverage offering from Coca-Cola as it teams up with the Constellation brand known for its alcoholic drinks. As soda makers are searching for new markets, with the waning popularity of sodas, they are teaming up with alcohol based beverage makers as the market is growing and regulations are changing, according to a report from CNBC.

Constellation released its latest results on Thursday morning. Its shares saw a less than one percent increase in value in premarket trading. The brewer had increased its quarterly earnings and revenue when compared with estimates from Wall Street. Coca Cola shares traded almost flat in premarket trading.

Fresca was introduced to the U.S. market more than six decades ago. It has seen several changes and innovations since it was first produced in 1958. However, making it a mixed cocktail might be its most ambitious and innovative beverage makeover, to date.

Both the companies expect to launch Fresca Mixed Cocktails in the U.S. this year. Constellation will be the producer, marketer and distributor of the new beverage offering. It will use its three-tier distribution network to market Fresca Mixed Cocktails.

Coca Cola said that Fresca’s popularity has seen a positive surge and this is good for the company unlike the positive surge recently seen as the omicron spreads throughout the nation. Fresca has become the most popular soda trademark in Coke’s U.S. portfolio, according to the report in CNBC.

Fresca has a grapefruit flavor which makes it a popular choice as a cocktail mixer. So, using this soda to get a slice of the spirits-based cocktail market is a good marketing and production strategy. According to data from IWSR Drinks Analysis, the canned cocktail market has seen a spurt in growth of 52.7 percent in 2020 when compared with 2019. It also accounted for 6.9 percent of the total volume of sales of ready to drink alcoholic beverages.

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