PepsiCo (PEP) has been chasing its biggest rival Coca-Cola (KO) for more than a century, and the beverage company is now pursuing a new market. In January, PepsiCo decided to pull the plug on its brand Sierra Mist and introduce a new lemon lime soda, Starry. Sierra Mist had a smaller market share than competitor Coca Cola’s lemon lime soda, Sprite.
“With one product dominating the category, consumers deserve another option … one that hits different. Starry is bright, optimistic, and rooted in culture and fun," said PepsiCo’s Beverages North American Chief Marketing Officer Greg Lyons said in a statement.
Pepsi is looking for new ways to expand its market share of the beverage industry, whether it be with partners like Yum! Brands (YUM) Pizza Hut, Taco Bell and KFC or expanding its ready-to-drink beverages available at grocery and convenient stores. PepsiCo and partner Unilever are taking its brand to a new aisle of the grocery store, the liquor aisle.
PepsiCo Delivers a New and Unique
PepsiCo and Unilever co-own Lipton Tea’s ready to drink beverages like Lipton Iced Tea, Pure Leaf Iced Tea and Brisk Iced Tea in a 50/50 partnership. The partners are expanding beyond the current grocery aisle of canned and bottled drinks across the store to the liquor aisle.
On National Tea Day, April 21, Pepsi Lipton launched its latest drink, Lipton Hard Iced Tea. The day was started and chosen because it was the late Queen Elizabeth II's birthday according to Daily Meal. Lipton is taking its world favorite tea and giving it a twist. The new Lipton Hard Iced Tea is a new take on the beverage, with the tea ingredient being real brewed Lipton tea, that is paired with natural fruit flavors and a triple filtered premium malt base. Lipton Hard Iced Tea is a non-carbonated beverage with 5% ABV.
"Lipton Hard Iced Tea is what you want hard iced tea to taste like," said Lipton Hard Iced Tea’s Brand Director Lisa Texido. "We created the recipe to make sure that the smooth, balanced flavor people love about Lipton iced tea really came through. I think people will be surprised that a hard iced tea can be this delicious – it's a must-try."
Lipton’s Hard Iced Tea will come in four delicious fruit flavors, lemon, peach, strawberry and half & half.
"We're so excited to launch these flavors just in time for the warm weather – you're going to want to sip them all summer long," added Texido.
The new ready to drink alcoholic drinks will be sold in a 12-can variety pack or in a single serving 24-ounce can for lemon or peach flavors. The new Lipton Hard Iced Tea will be available nationwide.
New Flavors Same Rivalry
PepsiCo and Coca Cola continue the rivalry by adding new twists and flavors. PepsiCo’s Sierra Mist is out and Starry is in, for now, as the new lemon lime soda. Coca Cola is not lost on the fact that Pepsi is coming after Sprite. Coca Cola is bringing out a new flavor just in time for the summer. Sprite Lymonade with Strawberry is a limited edition to the Coca Cola line up.
Fans reacted to the new Starry over Sierra Mist with mixed results. One consumer shows the Starry drink being poured into the trash. Another Pepsi consumer came out saying that the new Starry is not only better than Sierra Mist, but also better than Sprite. If Starry is good enough, it would only be a matter of time before new flavors of the lemon lime soda could make a debut as well. One consumer was quick to ask for new Starry flavors like cherry or tropical. Only time will tell if more of the market agrees or if Sierra Mist will make its return to grocery and convenient store shelves.
Coca Cola could mimic PepsiCo with its own ready to drink hard iced tea, with its tea brand, Gold Peak. Coca Cola previously held the Honest Tea brand but phased it out in 2022. Coca Cola still owns the brand name, but it's no longer on store shelves.
