PepsiCo Focuses on Zero Sugar, Energy Innovations
PepsiCo’s mission to become a “Faster, Stronger and Better” company has colored its innovation slate for 2023, according to Chris Yemma, senior director of industry relations and commercial communications for the Purchase, New York food and beverage giant.
In a guided tour of the company’s booth at this year’s National Association of Convenience Stores (NACS) Show 2022, Yemma said “Zero Sugar” has continued to be the most significant trend for beverages with new innovations like the Gatorlyte Zero line and flavor extensions such as Strawberry Peach Rockstar Pure Zero and Bubly Lemon Sorbet and Orange Cream varieties on display at its booth.
PepsiCo’s broadening energy portfolio is also getting larger. Caffeinated sports drink Fast Twitch – a new Gatorade sub brand containing 200 mg of caffeine and electrolytes per 12 oz. bottle – was announced last month and served as a highlight of the company’s new product focus at the show. Yemma said Fast Twitch is already being served to football players on the NFL sidelines and will be in full distribution by Q1 2023.
Other energy innovations were primarily flavor focused, including new Rockstar Punched and Rockstar Recovery Strawberry Lemonade offerings. The MTN Dew Energy line is also testing some classic Dew flavors as LTOs – namely Pitch Black, set to launch in January, and Code Red, timed for September 2023. Both Dew offerings will be sold in 16 oz. cans.
The company is also introducing a new lemon lime CSD brand, Starry, a direct Sprite competitor targeting the Gen Z demographic with full flavor and zero sugar SKUs. While PepsiCo may already have Sierra Mist in its portfolio, a report by Goldman Sachs Equity Research today noted the legacy lemon lime soda has “failed to gain much traction in the CSD space.” Starry will debut in Q1 with a Super Bowl ad planned to quickly raise awareness. PepsiCo cited market research suggesting 68% of CSD consumers are likely to try a new lemon lime brand over existing options.
Meanwhile, in its snack portfolio, Yemma said if zero sugar is the north star for beverage innovation, Flamin’ Hot is the focus for food. The company offered a new Cheetos Flamin’ Hot Tangy Chili flavor to sample at the booth, as well as Doritos Sweet Tangy BBQ and Frito-Lay Minis.
Jason Derulo Invests in TREO
Pop star Jason Derulo has taken an equity stake in birch water brand TREO, CMO Lindsay Eshelman told BevNET during the NACS show. The singer joined the company earlier this year and will now serve as a brand ambassador and creative director, beginning with a new commercial the brand plans to launch online this quarter. Terms of the deal were not disclosed.
According to Eshelman, Derulo was a fan of the New York-based brand before coming to the cap table and now intends to begin promoting the brand through his social media channels, including TikTok where he has over 55.2 million followers and YouTube.
“Jason’s a lover of healthy beverages and I have audio clips from him, and videos from him, where he talks about the importance of now being a father, and representing and owning products that are good for the family, and that’s what TREO is,” Eshelman said. “So I think part of it that drew him to the brand was it’s fun, it’s flavorful, but he actually gives it to his son. I’ve been in his house and seen him give it to his son. So I think it was something that he’s like, ‘Oh, now as a father, I want to represent something fun and flavorful and functional.’”
TREO is now launching a new Coconut Colada flavor, set to roll out in Q1, and aims to begin expanding its national distribution outside of New York in Q2, she added.
Iced Teas Take Over the Show Floor
While innovations in energy drinks may have played the starring role at this year’s show, iced tea was not far behind as multiple companies unveiled moves into the category and smaller brands made their NACS debut with eyes on expanding into the convenience channel.
Liquid Death previewed its upcoming iced tea launch displaying mockup 19.2 oz. cans (final design still pending) at its booth for three flavors: Rest In Peach, Grim Leafer and Armless Palmer. The teas are expected to hit shelves this spring and will contain six grams of sugar from agave and 30 mg of caffeine per serving.
While the company aimed for a better-for-you nutrition panel, several other companies debuted more indulgent takes on classic sweet teas. Lemonade brand Calypso showcased a new line of teas, with Peach Tea, Lemon Tea and Tea & Lemonade Half ‘n Half flavors featured at the booth and Green Tea and Unsweetened Tea flavors listed on its website. The line is sold in 16 oz. glass bottles. Aside from Unsweetened (containing zero calories and zero sugar) the remaining SKUs range from 100 to 230 calories per bottle and are sweetened with sugar.
Congo Brands also unveiled a new sweet tea brand, Down South. Though not on the market yet with more details to be revealed closer to launch, the line includes Original, Peach and Original Lite varieties.
Meanwhile, several tea makers known for their loose leaf and bag offerings unveiled RTDs at the show, including Revolution Tea’s canned cold brew line, and European brand Just T’s line of organic iced teas sold in cartons with flavors including Darling Peach, Dynamic Day (Green Tea, Matcha, Acai and Grapefruit), Nordic Blueberry and Apple Moringa Affair. Just T will be distributed by Dot Foods and the drinks are sweetened with agave syrup.
Brands without a strong presence in c-store were present at the show with aims to begin opening up the channel. POM Wonderful, which has primarily tackled the convenience channel through its premium Fiji Water brand, is aiming to open up new accounts for its POM line with 12 oz. tea SKUs expected to lead the strategy.
As well, sparkling tea startup brand Minna displayed a fresh can design at its booth. CEO Anshu Dua said the brand has been primarily sold in Whole Foods where it has become a top three organic tea brand to date but is now targeting the convenience channel as the line is differentiated as a sparkling product.
All Wello Makes NACS Debut with Shelf-Stable Juice
Florida-based startup All Wello made its NACS debut this week, showcasing a line of shelf-stable cold-pressed juices and shots. The juices are available in Go Green, Berry Delight and Tropical Escape flavors in 11.1 oz. bottles (SRP $3.99) and in Ginger, Turmeric and Apple Cider Vinegar varieties for its 2 oz. shot line (SRP $3.49). The brand is also launching a line of superfood smoothies in 5.29 oz. pouches. All products are USDA Organic.
According to founder Alberto Cohen, the brand uses a proprietary process to keep the juices shelf-stable for up to one year and is now exploring Watermelon, Lemonade and Half & Half line extensions. The drinks are sold in Walgreens, Rite Aid, H-E-B and Publix and are distributed through Coremark and KeHE.