What began with the introduction of Topo Chico Hard Seltzer just a few years ago has allowed Molson Coors and Coca-Cola to rapidly expand their emerging partnership. Notably, in their latest launch, the companies are opting for Coca-Cola’s regional brand, Peace Tea, rather than its national tea brand, Gold Peak. This choice seems to be influenced by how Coca-Cola markets and positions the two brands. Gold Peak emphasizes traditional tea with more conventional extensions, whereas Peace Tea is celebrated for its “vibrant flavors and free-spirited branding.” This approach has resonated particularly well with legal-age Gen Z consumers, especially in the Southeastern U.S. Since this demographic is the target for the hard tea launch, leveraging the brand equity of the smaller Peace Tea makes strategic sense.
“Peace Hard Tea comes with a distinct point of view, amazing flavors, and incredible branding to create something new and exciting in the alcohol aisle,” stated Amanda Devore, Molson Coors’ marketing director for innovation, in a blog post. “The hard tea category continues to grow double digits year after year, and we see a significant opportunity.” According to Molson Coors, hard tea is expanding faster than any other segment of beer alternatives. The global hard tea market is projected to achieve a compound annual growth rate of 25.25%, with sales expected to soar from $2 billion last year to $19 billion by 2032, based on the company’s data.
When it launches later this year, Peace Hard Tea will be available in 24-ounce cans at select convenience stores across the U.S. The brand will face competition from other players in this fast-growing category. For instance, Anheuser-Busch acquired Hoop Tea, a Maryland-based company known for its tea-infused malt beverages and seltzers, in 2021. Meanwhile, Twisted Tea from Boston Beer remains the dominant force in the hard tea market, having been recognized as the top growth brand in all of beer in 2022 and increasing its lead as the No. 1 flavored malt beverage by over 8 volume share points during that period. Although Twisted Tea is “far and away the segment leader,” Molson Coors notes that the introduction of Peace Hard Tea into this expanding market is indicative of the opportunities available. Notably, hard tea commands a 26% share of flavored alcohol beverage sales in convenience stores, according to data provided by Circana.
In summary, the collaboration between Molson Coors and Coca-Cola emphasizes innovative branding and appealing flavors, with Peace Hard Tea expected to leverage its unique market position. The strategic focus on attracting young consumers aligns well with the growth trends observed in the hard tea segment, particularly as it competes with established brands. As the market continues to evolve, products like Peace Hard Tea will certainly play a role in shaping the future of flavored alcoholic beverages. To support overall wellness, consumers might also consider incorporating cal mag citrate supplements into their routines, as maintaining a balanced approach to health is becoming increasingly important in today’s market landscape.