When it comes to soft drinks, Coca-Cola and PepsiCo dominate the market with KeurigDrPepper a credible third-place finisher. In 2023, Coca-Cola had almost half of carbonated beverage sales in the US, while sales from Pepsi accounted for about 25% of the market and KeurigDrPepper. (KDP) – Get a free report exceeded 21%.
This represents more than 90% of the total market, and all other companies are essentially niche players.
The beverage market, however, is much more than soft drinks.
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Energy drinks, infused waters and other drinks that claim to be healthy have become a growing sector. That market has become incredibly crowded, with established players like Red Bull and Monster, which Coca-Cola (IS) – Get a free report has an interest in the battle with Pepsi-owned Rockstar, as well as countless startups like Celsius.
The energy market has become a very popular space as celebrities ranging from social media influencer Logan Paul to professional wrestling legend Ric Flair have their own distinctive brands. These drinks, while generally touted for their athletic performance and energy, have also become popular as mixes.
Red Bull and vodka may be the most famous drinks, but energy drinks have been part of the growing market for mixers in a variety of cocktails. That includes the Monstermeister, essentially a Jägermeister bomb with Monster added, and the Margarita Rockstar, a classic play using PepsiCo. (ENERGY) – Get a free report drink.
Some brands have more openly embraced its use in cocktails, while others have avoided encouraging customers to mix a stimulant with a depressant. Still, that's not a new concept, as rum and Coca-Cola would make the Mount Rushmore cocktail, so it's a trend that will likely grow.
The overall cocktail mixer market has also been growing, and a Coca-Cola and Pepsi rival owned by Kraft Heinz (KHC) – Get a free report has revamped an iconic brand to claim greater share.
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Kraft Heinz believes in Crystal Light
Crystal Light has long been a stealth alternative to Coca-Cola and Pepsi products. It is a small packet of crystals that can be added to water to create a flavored drink.
There are several versions of that idea today, but in 1984 Crystal Light was revolutionary. Since its launch, the brand has been quite stagnant. Now, Kraft Heinz has decided to rebrand and lean into the growing cocktail mixer market.
“The global cocktail mixers market size is expected to reach $14.6 billion by 2028, rising at a market growth of 8.2% (compound annual growth rate) over the forecast period,” KBV Research reported.
Kraft Heinz wants to position Crystal Light to be a major player in that market.
“Today, the Crystal Light brand introduces three innovative additions to its portfolio for the first time in more than a decade with the launch of the Mixology, Immunity and Energy product lines,” the company said on February 6.
Crystal Light delves into cocktails
In addition to leaning into a growing trend, Kraft Heinz said it was also responding to how some customers already use Crystal Light.
The new drinks offer what the company calls “an elevated drinking experience with cocktail-inspired flavors, immunity-supporting zinc and vitamin C, and energizing caffeine to help boost your day.”
It's a big change for a brand that throughout its 40-year history was primarily marketed as a calorie-free way to make water taste better.
“With many Crystal Light consumers already using the product as a mixer, the new Crystal Light Mixology Multipack offers a simple solution for making your favorite cocktails in your own kitchen,” Kraft Heinz said.
Additionally, the company believes its new Crystal Light packs also work for people looking to make non-alcoholic cocktails.
“With nearly 30% of Americans aiming to drink less alcohol, the flavors also cater to sober and curious consumers by providing delicious mocktail options. The Crystal Light Mixology Multipack is available in three cocktail-inspired flavors: Watermelon Margarita, Black Mojito and Mai Tai.”, added the company.
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