Buffett’s Top Stock Just Went Boozy… Will Coca-Cola and Bacardí Dominate the $19B Cocktail Market?

In a move that's about as shocking as Warren Buffett ordering another Cherry Coke (the man drinks five a day, after all), Coca-Cola has announced yet another boozy partnership. 

(Source: Business Insider)

This time, the world's largest non-alcoholic beverage giant is linking arms with Bacardí, the Cuban-founded rum brand, to bring us a ready-to-drink cocktail that combines two of the most iconic flavors known to mankind—Coca-Cola and Bacardí rum.

Now, this partnership might feel like a no-brainer. Coke and Bacardí have been mixing it up like old friends who can finish each other’s sentences since 1900 when American soldiers fresh off the Spanish-American War created the classic Cuba Libre. Over a century later, these two are taking their iconic cocktail and putting it in a can.

(Source: The Brunswick News)

If you know anything about Coca Cola, the company’s been flirting with liquor brands like a college kid at a frat party over the past several years. They’ve already linked up with Molson Coors for Topo Chico Hard Seltzer, launched Fresca Mixed Cocktails with Constellation Brands, and don’t forget the Jack & Coke collab with Brown-Forman. Now, they’re adding Bacardí to the list, solidifying their status as a major player in the pre-made cocktail game. 

Now, Bacardí joins the club, solidifying Coke’s position in the $19 billion canned cocktail market, which is expected to double by 2033. With Coca-Cola stock up 3% last quarter, they’re playing the long game here. It’s like Buffett said, "The stock market is designed to transfer money from the Active to the Patient." And Coca-Cola’s got the patience—and the partnerships—to win big here.

Latin America is Coca-Cola’s secret weapon. Revenues are up 20% there, with Mexico and Brazil leading the charge despite inflation pushing prices up 19%. Launching the Bacardí-Coke cocktail in Mexico in 2025? Genius move. It’s like shooting fish in a barrel—except the fish are thirsty for rum and cola.

This is all part of Coca-Cola’s broader strategy to go "total beverage." They’re not just selling sodas anymore. Whether it's coffee, water, energy drinks, or now cocktails, Coca-Cola wants to be in your fridge no matter what you’re drinking. And Warren Buffett, whose Berkshire Hathaway owns over $23 billion worth of Coca-Cola stock (9.2% of the company), is probably raising his glass to this. After all, Buffett once joked that if he had to pick one stock to hold for 100 years, it’d be Coca-Cola. Looks like he’s in good company with Bacardí.

Europe’s a tougher market, but with two-thirds of Europeans drinking alcohol regularly, Coca-Cola’s betting their new cocktail will be a hit. The hope with this Bacardí-Coke partnership is that it will give a shot in the arm to Coca-Cola’s stock. 

And so far, it’s working—shares have surged 15.4% over the past three months, well ahead of the industry’s 9.8% growth, driving the company’s evolution into a "total beverage" powerhouse. The numbers don’t lie either. Coca-Cola’s second-quarter 2024 earnings report showed a 3% global revenue increase, with Latin America and Europe leading the charge in growth.

Coca-Cola’s stock is up 18% year to date.

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Stock.News has positions in Coca-Cola.