In what many partygoers may term as long overdue, Coca-Cola (NYSE:KO) announced Monday that it has reached an agreement with Pernod Ricard (OTHEROTC:PRNDY) to launch a canned pre-mixed cocktail drink made from Sprite and Absolut Vodka. The partnership will be the first between the companies as Coca-Cola looks to cash in on the booming spirits market.
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According to Coca-Cola, the drink will be a pre-mixed version of Sprite and Vodka, with versions in Sprite and Sprite Zero Sugar. The drink is expected to launch in select European countries, including the United Kingdom and The Netherlands, in early 2024.
The companies expect the product to see a positive reception, considering that lemon-lime soft drinks are popular bases for cocktail mixes. “Sprite is a wonderful pairing for Absolut, and I’m convinced that our joining forces will bring the whole alcohol [ready-to-drink] category to the next level,” said Pernod CEO Alexandre Ricard.
For Coca-Cola, the partnership is a chance for the company to widen its foray into the pre-mixed cocktails market. Last year, the firm penned an agreement with Brown-Forman Corporation (NYSE:BF.B) to debut a ready-to-drink pre-mixed cocktail option in Mexico and the U.S.
“We keep consumers at the center of everything we do as we continue to develop our portfolio as a total beverage company,” noted Coca-Cola CEO James Quincey. He added that the company plans to expand further into the alcohol ready-to-drink space through some of its most recognizable brands.
What is the Future Price of KO Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on KO stock based on 10 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average KO price target of $66.23 per share implies 24.11% upside potential.
