Japanese by Example
Learning through examples in manga

That with それ

それ refers to something near the listener.

Examples

That coffee with それ

Manga panel from ご注文はうさぎですか? showing example of That with それ.
ご注文はうさぎですか? » Volume 1 » Page 11

Sampling the second coffee, Cocoa mistakenly identifies the coffee as Kilimanjaro. Chino corrects her.

チノ:
それがブルーマウンテンです」
That is Blue Mountain.”

それ is used because the referenced object (the coffee) is near the listener (Cocoa).