Dive Brief:
- Coca-Cola is relaunching the Mexican soft drink brand Barrilitos in the U.S., starting with California and Texas. There is likely to be further near-term expansion into Nevada and Oklahoma. Barrilitos was discontinued a few years ago after Coca-Cola said it listened to consumer feedback and chose to concentrate on other imported brands, the company stated in an email to Food Dive.
- The beverage manufacturer said Barrilitos appeals to people craving nostalgia, its connection to heritage and authenticity, and its vibrant flavors and quality. Barrilitos, which debuted in 1938 in Monterrey, Mexico was purchased by Coca-Cola in 2008.
- Coca-Cola said the fruity beverage is getting a new formula. The company declined to offer specifics about the reformulation, except to say that it appeals to a new generation of consumers.
Dive Insight:
Hispanic consumers are a fast-growing demographic with money to spend, and CPG companies are taking notice.
Hispanics are fueling 16% of total consumer packaged goods (CPG) growth in the U.S., according to a report from Circana.The data firm noted the demographic makes up a fifth of the American population and accounts for 71% of national population growth between 2022 and 2023. At the same time, more than 25% of Gen Z and Gen Alpha identify as Hispanic, Circana said, demonstrating the long-term potential of the Hispanic consumer group.
In relaunching Barrilitos in the U.S., Coca-Cola noted that the beverage appeals to multicultural Gen Z’ers, millennials and families. This wide consumer base immediately gives Coca-Cola a diverse cross-section of the public to target, most notably younger consumers who are looking for novel flavors and increasingly control a larger portion of consumer spending. Barrilitos competes with Jarritos, another glass-bottle Mexican soda found in the U.S. but Coca-Cola’s deep pockets and vast distribution network could help Barrilitos close that gap.
“Barrilitos is evolving to meet the needs of a new generation, without losing sight of its rich history,” Maria Correa, who leads the Barrilitos brand for Coca-Cola, said in a statement. “We’ve infused Barrilitos with a refreshed brand identity while preserving the classic flavors and traditions that have made it a beloved part of Latino households. This relaunch is an invitation to experience Barrilitos and celebrate its heritage in a whole new way.”
Barrilitos, which is produced in Mexico, is available in four flavors — Mandarina (Mandarin), Manzana (Apple), Piña (Pineapple), and Ponche de Frutas (Fruit Punch) — packaged in a twist-glass bottle.
In relaunching Barrilitos, Coca-Cola is likely looking to tap into some of the attributes that made its Topo Chico brand a success.
Coca-Cola paid an estimated $220 million in 2017 to purchase Topo Chico, a Mexican sparkling water brand it had worked closely with for nearly a century before, as it moved aggressively to diversify its beverage portfolio and reduce its dependency on sugary drinks.
In the years since, Coca-Cola has used its muscle to significantly expand Topo Chico’s distribution beyond its core U.S. Texas market and bring it into new beverage categories, including sparkling waters made with fruit juice and herbal extracts as well as alcohol through Coca-Cola’s partnership with Molson Coors.
Coca-Cola is targeting Hispanic locations with the Barrilitos relaunch first in Texas and California. It’s possible the company then decides to bring the brand to other parts of the U.S.
Barrilitos also is made with fruit flavors and cane sugar, which should give the beverage a healthier perception than is found with traditional sodas, including those made by Coca-Cola. Topo Chico has thrived in part because it allows consumers to have a better-for-you drink without losing the coveted carbonation.
