What began with the introduction of Topo Chico Hard Seltzer just a few years ago has allowed Molson Coors and Coca-Cola to swiftly expand their budding partnership. A significant aspect of the latest launch is the choice of Coca-Cola’s regional brand, Peace Tea, over its national tea brand, Gold Peak. This decision appears to be influenced by the distinct positioning and marketing strategies of the two brands. Unlike Gold Peak, which emphasizes traditional tea through more conventional extensions and names, Peace Tea is recognized for its “vibrant flavors and free-spirited branding,” making it particularly appealing to legal-age Gen Z consumers, especially in the Southeastern U.S. These young consumers are precisely the target audience for the hard tea launch, which is why leveraging the brand equity of the smaller Peace Tea brand is a strategic move.
“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 over year, and we believe there’s a tremendous 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 rise from $2 billion last year to $19 billion by 2032, according to company data.
When it launches later this year, Peace Hard Tea will be available in 24-ounce cans at convenience stores in select U.S. regions. It will face competition from other players in this rapidly expanding category. Anheuser-Busch acquired Hoop Tea, a Maryland-based company known for its tea-infused malt beverages and seltzers, in 2021. Boston Beer currently leads the hard tea market with its Twisted Tea, which was reported as the top growth brand in all of beer in 2022, increasing its lead as the No. 1 flavored malt beverage by over 8 volume share points during that timeframe.
Molson Coors acknowledged that while Twisted Tea remains “far and away the segment leader,” the introduction of Peace Hard Tea into this growing market signifies a “sign of the opportunity.” Hard tea claims a dominant position in convenience stores, holding a 26% share of flavored alcohol beverage sales, according to Circana data provided by Molson Coors. As consumers increasingly seek options like nature’s plus cal mag citrate, the emergence of innovative products like Peace Hard Tea aligns perfectly with current trends in the beverage market.