08 March 2022
Why CPG Joint Ventures Are on Tap for PepsiCo, Molson Coors, Others
Changes are flooding the beverage industry, with consumers reaching for energy drinks, sports drinks and RTD coffee. But the beverage giants that built their foundations on soft drinks and beer aren’t sitting back watching the trend unfold. Instead, they’re innovating through joint ventures, using a relatively low-risk method to get new products to market that appeal to younger demographics and shifting consumer preferences.
PepsiCo recently strengthened its JV with Starbucks to launch a functional energy drink, a key segment for PepsiCo to grow this year, as reported by CPG Specialist.
Coca-Cola teamed up with alcoholic beverage leaders to produce and distribute seltzers and mixed drinks, including Topo Chico Hard Seltzer and Simply Spiked Lemonade with Molson Coors, and Fresca Mixed with Constellation Brands.
And Molson Coors itself has been moving to segments outside of beer, as evidenced by its aptly named blog Beer & Beyond. Recent partnerships include La Colombe Coffee Roasters, Zoa Energy, L.A. Libations and cannabis company Hexo.
“We’re making a big pivot within beverages right now,” Pete Marino, president of emerging growth at Molson Coors, told CPG Specialist in an interview. But to be clear, “we're not walking away from beer in any stretch of the imagination.”
To read the full article visit CPG Specialist.
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