The Coca-Cola Co. is raising a glass to the health-conscious crowd with its latest premium offering Topo Chico Sabores. This sparkling mineral-water drink infused with natural flavors and no sugar is Coke's bold move into the healthy-drink market.
According to a recent Harvard University study, the number of young people consuming at least one sugar-sweetened beverage daily has decreased from 80% to 61% in recent years. With Gen Z opting for healthy alternatives to sugary drinks, Coca-Cola is hoping to cash in on the growing market share by offering Topo Chico Sabores in three flavors — blueberry, tangerine and lime.
The drink is infused with a delicate balance of minerals and carbonation, ensuring it tastes like natural mineral water without upsetting the Mexican environment from where Topo Chico originates.
As the demand for healthier drink options increases, brands like Pureboost, which was the first healthy energy drink, have risen in popularity. Coca-Cola recently pulled the plug on its own Coca-Cola Energy drink experiment because of disappointing sales. But the company is not ready to give up. Coca-Cola hopes to quench the thirst of the health-conscious generation.
Coca-Cola purchased Topo Chico for an estimated $220 million in 2017 as part of its strategy to diversify its beverage portfolio and reduce its dependency on sugary drinks. Since then, the brand’s distribution has significantly expanded across the U.S., elevating it from a regional favorite to one of the most popular brands in the sparkling water category.
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Sales have soared, with the brand’s market share rising from 20% to 35% between 2017 and 2021, according to Nielsen data provided by Coca-Cola. This success is in part because of consumer demand for fizzy drinks that provide refreshment without sugar.
Dan White, Coca-Cola’s revenue-streams chief, and others at Coca-Cola are optimistic that Topo Chico could become a $1 billion brand, a significant milestone for what once was known only for mineral water collected and bottled from Mexico. “It’s on a trajectory to do that,” White said. Flavored sparkling water alone generates approximately $300 million in U.S. retail sales, and this growth is expected to continue
The soft drink giant is no stranger to the healthy beverage game. In fact, it’s already dabbled in it with their Coca-Cola Fiber+ (or Coca-Cola Plus), a diet version of the iconic drink with added dietary fiber in the form of dextrin. The fizzy concoction was launched in Japan in March 2017 and has since gained approval as a functional beverage by Japanese food for specialized health uses (FOSHU). With varying options like sweetened or nonsweetened, more or less caffeinated and now with added fiber, Coca-Cola Fiber+ is geared toward health-conscious consumers who don't want to compromise on taste.
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