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RumChata Offshoot FrappaChata Enjoys Fast Start

September 21, 2017

Launched this summer, Agave Loco LLC’s ready-to-drink alcoholic iced coffee brand FrappaChata is quickly gaining traction. The 12.5%-abv offering—which blends coffee with Agave Loco’s flagship RumChata cream liqueur—is currently available across 47 states, with regional placement in major retail chains such as Walmart, Kroger, Publix and Target, among others. Agave Loco LLC founder and master blender Tom Maas tells SND that FrappaChata is projected to reach at least 100,000 cases this year.

“We’ve already shipped over 60,000 cases, and it really depends on the holidays—we could easily sell more than 100,000 cases,” says Maas, noting that the brand also expects to see an uptick throughout the tailgate season. “We think FrappaChata can be a million-case brand in the next three to five years. Packaged iced coffee is a $2 billion industry, so retailers understand that there’s a huge opportunity there for a viable alcoholic alternative.”

FrappaChata is currently available in 100-ml. mini bottles ($1.99 each) targeted toward single-serve consumption, as well as a 1.75-liter package ($19.99) designed with party and outdoor occasions in mind. The rollout has been backed by a $1 million television ad campaign, which began in August and is slated to run though November across 12 key markets.

FrappaChata builds off of the success of RumChata, which surged from 17,000 cases in 2010 to 512,000 cases in 2014 before slowing the past two years. Maas expects RumChata to approach 540,000 cases this year. While it’s associated with shot consumption, Agave Loco is looking to broaden the brand’s appeal, suggesting RumChata as an addition to coffee, particularly in the after-dinner occasion in the on-premise.

“We have a strong following with young LDA to 35-year-old consumers, but what we need to do is build the 35- to 40-year-old-and-up segment,” says Maas. “A lot of our recent efforts, including the coffee service, are designed to make sure we’re not seen as just a shot brand.” —Christina Jelski

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