Following its licensing agreement with Sonic Drive-In to produce and sell Sonic Hard Seltzer, COOP Beverage Works will next partner with Chicago-headquartered juice maker Tampico Beverages to produce Tampico Hard Punch.
“They have an impressive portfolio of flavors, for sure,” VP of business operations Ryan Stump told Brewbound. “That makes it a really exciting partnership for us – seemingly limitless opportunities.
“If you look at their website or if you just see their product in store, you’re gonna see just the massive amount of flavors that they have,” he continued. “Also they’re a trusted brand, they’re a leader in the market.”
The flavored malt beverage will begin rolling out in the first quarter of 2023 to Oklahoma City-based COOP’s 41 state footprint, which includes about 85% of the U.S. population. Another state is expected to be announced in the next 90 days.
It will launch with Island (pineapple, banana, orange) and Citrus (orange, tangerine, lemon) flavors. Each checks in at 8% ABV and will be available in 4-packs of 12 oz. slim cans and 24 oz. single-serve cans.
Tampico’s long-established presence in grocery and convenience stores made it an attractive partner for COOP, co-founder and CEO Daniel Mercer said.
“The interesting thing about Tampico versus Sonic is this is already a lifestyle brand in the off-prem channel in the non-alc space,” he said. “The marketing approach with Sonic was very cooperative, but the marketing approach with Tampico is going to be developmentally cooperative. They have access to the market. They know what has worked for their brand, historically.”
Tampico launched its citrus punch in the U.S. in 1989. Today, the brand is sold in more than 50 countries. Tampico’s highest velocity consumers belong to the Black and Hispanic communities, and its strongest markets stretch from California across the Southwest to Texas and Oklahoma and east to Florida.
In addition to the southern part of the country, Tampico also pops in New York City and Chicago, where COOP expects Tampico Hard Punch to gain traction both in the on-premise and in off-premise convenience stores and bodegas.
Mercer sees Tampico Hard Punch as “giving a little bit of break outside of the margarita-esque malt-based beverages that are out there and just getting something that’s a little more fun, frankly.”
A retailer made the match between COOP and Tampico, Mercer said. Talks began about a year ago, and COOP continues to court licensing partners for other opportunities.
“We’re looking to find deals that have the right opportunities as the PAB [progressive adult beverage] segment is evolving,” Mercer said. “I think it’s starting to get a little more channelized and get a little more focused, less of a shotgun approach amongst market entries, particularly with seltzer falling off a little bit.”
To support the product in its inaugural year, COOP Beverage Works will deploy two five-person teams weekly in the market to visit as many as 200 venues per week. Because its rollout trails behind spring resets, the team is seeking floor placements with feature activity surrounding key holiday periods, beginning with spring break.
“It’s really probably a feature set to start, and the cold set is probably initially isolated to large format cans,” Mercer said. “As the brand gains more saturation and velocity numbers support inclusion in the sets, we’ll look to make entry.”
Tampico Hard Punch joins a long line of non-alcoholic crossover beverages in the bev-alc category. Some offerings in the space have caused controversy, such as Boston Beer’s Hard MTN Dew, which came under fire during the National Beer Wholesalers Association’s (NBWA) convention this fall for displays that included non-alc Mountain Dew or, in one case, Hot Wheels toy cars. COOP is keen to avoid any missteps.
“We want to make sure that we’re just not picking up the wrong images that might look something that would be more kid-friendly,” Stump said. “We want to make sure we’re being very intentional about making the difference between the packaging with the can and the carton to make sure that it doesn’t look like your standard Tampico just to protect everybody out there, as this is an adult-only product.”
Its 8% ABV status also sets it far apart from hard seltzers and other calorie-conscious bev-alc plays.
“From a merchandising perspective, this product doesn’t land next to seltzer at all,” Mercer said. “The target focus of the experience and what lifestyle experience you’re purchasing around, I think would lend itself a little closer to FMB’s, but it might even land particularly with Sonic Hard Slush and Daily’s and BeatBox and other juice-flavored or color-forward, maybe not-so-healthy for you drinks.”