Coca-Cola (NYSE:KO) made a key change with its Red Tree Beverages subsidiary that manages the company’s alcoholic beverage ventures in the U.S.
Red Tree Beverages entered a new partnership with spirits giant Sazerac that will see the family-owned American alcoholic beverage company take over production and distribution for Fresca Mixed, a soon-to-launch Fresca Hard, and Minute Maid Spiked. Those brands will be transitioned away from Constellation Brands (STZ). Looking ahead, the new deal gives privately held Sazerac a significant role in Coca-Cola’s (NYSE:KO) U.S. alcoholic ready-to-drink portfolio.
Red Tree Beverages’ Minute Maid Spiked includes several RTD varieties, such as Vodka Pink Lemonade, Fruit Punch, Lime Margarita, and Strawberry Daiquiri, in both vodka-based and wine-based formats. Red Tree also works with Molson Coors (TAP) with a licensing deal for the Topo Chico Hard Seltzer brand.
Analysts have pointed to the potential for Red Tree Beverages to see strong growth in 2026 as the alcoholic ready-to-drink category expands.
Shares of Coca-Cola (KO) are up 7.6% on a year-to-date basis.