The Coca-Cola company has announced that it has completed its acquisition of growing Mexican sparkling water brand Topo Chico for $220mn.
Topo Chico, a bubbly mineral water, has been sourced and bottled in Monterrey, Mexico, since 1985.
The sparkling water is already available in 35 US states and Mexico but it is particularly popular in Texas, which accounts for 70% of all sales.
Matt Hughes, VP of Emerging Brands, Incubation, said that the Coca-Cola Company hopes to "extend its reach while preserving its heritage.
"We are going to thoughtfully expand the brand's geographic presence – to create more 'Texases."
Topo Chico has been produced by the Mexican company Arca Continental, the second largest bottler of Coca-Cola products in Latin America, for about 30 years.
This year it was announced that fizzy drink consumption is down for the twelfth year in a row, bringing it to a 31-year-low.
Consumers are increasingly more concerned about their health and wellness than a sugar buzz.
Through the move, Coca-Cola has invested in a popular brand from a segment of the market that it is still experiencing growth - sparkling water.
The Mexican brand now joins Coca-Cola's other sparkling water offerings including sparkling versions of its Smartwater and Dasani. Unlike those brands, however, Topo Chico is served in a glass bottle packaging. It is thought that the Coca-Cola Company’s new position could allow it to compete against more premium sparkling water brands.
Come critics voiced their concerns that the beverage giant could detrimentally affect the brand. However, Hughes asserted that the legacy of Topo Chico will remain intact.
“Chico will continue to be sourced from the same sacred and special place in Monterrey and bottled in the same best-in-class facility where it has been for many years,” he said.