PepsiCo announced yesterday it will drop “Rise” from the name of its MTN Dew Rise Energy line, signaling a temporary win for cold brew coffee maker Rise Brewing Co. in the company’s legal challenge over claims of trademark infringement. The product will be renamed “MTN Dew Energy.”
In a preliminary injunction issued November 3, Judge Lorna Schofield ordered PepsiCo to temporarily cease all sales of the morning energy drink within seven days. According to court documents, Rise Brewing had presented sufficient evidence to prove that the use of the word “Rise” had caused “irreparable harm” to its business and demonstrated “a likelihood of success on the merits of the federal copyright claim.”
PepsiCo appealed the decision but was denied an 11-week reprieve to allow the company to minimize disruption during a rebranding process.
PepsiCo did not immediately return a request for comment by BevNET. In a statement sent to AdAge yesterday, a spokeswoman confirmed the rebrand was in process and said “All formula, flavors and marketing partners remain the same, and we have full confidence that we will continue to deliver the same great product consumers have quickly grown to love.”
Positioned around a morning use occasion, MTN Dew Rise Energy launched in March and quickly became a notable brand in PepsiCo’s expanding energy drink portfolio, growing to a 0.9% market share of the category with $106.6 million in retail dollar sales as of October 23, according to NielsenIQ.
In June, Rise Brewing filed a lawsuit against PepsiCo, alleging trademark infringement and claiming that the new product had caused significant confusion among retailers and consumers.
In an email to BevNET today, Rise Brewing CEO Grant Gyesky praised PepsiCo’s decision to rename the energy drink. Gyesky had previously called the confusion caused by the product a “distraction” from his goal of growing and expanding the business.
“We are pleased to see that PepsiCo is dropping the use of RISE for their Mountain Dew energy drinks,” Gyesky said. “This is the outcome that is best for the consumer and will allow us to continue to build our brand without the continued confusion we have been seeing in the marketplace.”
The immediacy of the injunction, which goes into effect this week, could still create a road bump for MTN Dew Energy’s sales momentum as the company works to redesign, manufacture and distribute new cans. According to AdAge, the injunction also threatened to disrupt plans for a Super Bowl marketing campaign and a television spot for the MTN Dew product that is in the works. A PepsiCo spokeswoman told the publication that “marketing for MTN Dew Energy will be a priority” for its Super Bowl strategy.
However, the rebrand will not be the last stage of the legal battle between Rise Brewing and PepsiCo as Gyesky confirmed the trial is still moving forward with no clear end date.