It’s game on for PepsiCo and e-commerce.
Today, the beverage giant unveiled its first brand-specific direct-to-consumer platform for MTN DEW Game Fuel, a move designed to meet the brand’s consumers in the digital arenas where they work and shop. In addition to offering Game Fuel’s full suite of flavors in different sizes, the site, which went live at noon today, includes a robust rewards program, dubbed Victory Pass, that is integrated into games like Call of Duty: Black Ops and platforms like Twitch.
Beyond its appeal to gamers, though, the launch may also represent a potential testing of the waters for PepsiCo’s future endeavors in e-commerce.
Game Fuel represents the “right product” to take on this new route to market for PepsiCo, according to Nicole Portwood, VP of Marketing at MTN DEW and MTN DEW Game Fuel.
“What we are really trying to do is get as close to the gaming experience as possible, and that experience happens in the virtual world,” said Portwood. “If you think about the shopping behavior and the opportunity to really deliver product as close to home as possible, that is less about a retail environment and more about living in the virtual world.”
The brand’s digital revamp comes as gamer-focused beverages continue to enjoy a boost from the overall momentum driving the global video game industry to 9.3% projected growth ($159.3 million) this year. Video games shift from niche to mainstream culture — exemplified by the rise of competitive e-sports leagues and the popularity of streaming platforms like Twitch — has helped fuel a cohort of brands working exclusively in the space, such as Ghost Lifestyle, Sneak and G-Fuel (196.4% revenue growth from 2016 to 2019).
As that shift is occurring, audiences are becoming more sophisticated and discerning, Portwood noted, and brands are obliged to deliver in more (and more innovative) ways. One method has been through partnerships with major software studios like Activision, makers of the popular Call of Duty series, that are integrated directly into the game itself. For the latest release, Call of Duty: Black Ops Cold War, Victory Pass members can unlock in-game rewards, such as 2XP, while retro PepsiCo and Doritos products are featured within the environments themselves. The brand will also release a limited edition can inspired by gaming celeb “Dr. Disrespect” exclusively through the site, with special flavor drops and online-only package formats to be explored further as the site matures.
“The way the world looks at gaming and gamers has shifted dramatically — just think about what gaming tournaments used to look like to where we are now, with the level of professionalism and the prize pools and teams and investments that go behind training, it’s been a massive shift,” Portwood said. “The people who are involved have also become more sophisticated along that path as well, in part because they are sort of forcing progress on those fronts, and because there are so many new tools and spotlights shined on the possibilities of this world.”
Operationally, though, Game Fuel also represents a potentially critical moment for PepsiCo as it looks towards the future of distribution and e-commerce. Portwood noted that orders will not be pulled from Game Fuel’s retail stock but from separate warehouses and fulfillment centers across the country. Orders will ship within one to five days from payment; through March 16, Victory Pass members will receive free shipping on all orders via UPS Ground. The site is selling all Game Fuel flavors individually in 12-packs, as well as a 3-Flavor Variety 12-Packs, a 4-Flavor Variety 12-Packs and a Zero Sugar Variety 12-Packs. A subscription option is expected to be added at a future date.
Meanwhile, the line’s brick-and-mortar retail presence will be scaled back in some parts of the country, she said, as sales will be funneled toward the website or other online platforms, such as Amazon and Walmart.
Though online synergies are particularly strong with Game Fuel, the limited move into dedicated direct-to-consumer sales is set to influence the company’s future e-commerce strategy.
“We don’t have any plans on the horizon right now, but this is an opportunity to really test and learn,” Portwood said. “As an organization, we are going to be learning a lot from how this goes. It’s not a replacement for retail, it’s an augmentation to make sure we are delivering on consumers’ needs.”