Blame Sprite.
The classic Coca-Cola brand has largely owned the lemon-lime soda market in a way that has squeezed out all competitors.
You can't fault PepsiCo (PEP) for its lack of trying to compete. The number two soda brand currently offers Starry, a sort of reimagining of Sprite with a modern spin.
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"The demand for lemon-lime flavored soda has never been greater, with category growth accelerating since 2019, there's a significant opportunity now to give people a choice in an area that's been dominated by one brand for years. Starry, using the tag line, 'Starry Hits Different,' brings a new lemon-lime flavor to the mix for a consumer who is simultaneously optimistic about the future and brings a sense of irreverence to their everyday," the company shared when the soda launched last year.
It's a marketing campaign that feels like it was created by middle-aged executives trying to appeal to young people. Starry, however, is actually PepsiCo's third attempt to take down Sprite. The soda brand replaced Sierra Mist, which itself replaced Slice, a line of fruit-flavored sodas that included lemon-lime as its flagship.
Slice was first phased out around 2010, and made a brief comeback as a low-calorie sparkling water brand in 2018. It then went away again, but now, under a new owner, it's ready to make a major comeback.
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Slice has a new owner and a new purpose
In 2023, Sprite was the fourth best-selling soda behind Coca-Cola which is followed by Pepsi and Dr Pepper, which share the second and third spots.
"Sprite, meanwhile, is nipping at both Dr Pepper and Pepsi’s heels. In data shared with Nexstar from Beverage Digest, Sprite held an 8.1% share of the market at the end of 2023, with Diet Coke not far behind at 7.8%. Mountain Dew (6.3%), Coke Zero (3.8%), Diet Pepsi (3.5%), Fanta (2.9%), and Canada Dry Ginger Ale (2.2%) rounded out the top 10 brands by market share at the end of 2023, according to Beverage Digest," Fox 44 News reported.
People want a lemon-lime soda, but they overwhelmingly want it to be Sprite. It's easy to see why Pepsi keeps trying to take a piece of that market, but disrupting the market leader has proven nearly impossible.
Now, a new owner has purchased the Slice brand and has plans to bring it back to store shelves. When it returns, however, it won't be shooting to take down Coca-Cola's (KO) big gun.
Instead, it will be trying to find a place in a growing soda niche.
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Wellness soda brand buys Slice
Suja Life, which describes itself as "the leading functional wellness platform" has purchased the Slice brand. The company owns Suja Organic, a healthy beverage brand, and Vive Organic a line of wellness shots.
The company calls its lineup, a "better-for-you" beverage brand. It has added Slice to its lineup and plans to bring it back in a healthier way.
"The deal represents Suja Life’s continued dedication to offering beverages that provide incremental health benefits with low sugar and clean ingredients. Under Suja Life’s innovative guidance, Slice will be reintroduced in 2025 with a fresh look and revamped formula featuring pared-down clean ingredients," the new owner shared.
More soda:
While the new owner plans to make Slice a healthier product, it wants to at least be evocative of the taste people remember.
"While the improved ingredients will bring a new healthy soda option to Suja Life’s portfolio, the flavors and taste profile will resemble the classic, nostalgic sodas people know and love. The relaunch of Slice will not just be an all-natural, low-calorie soda, but one that delivers advantages for gut health with superior nutrition, function, and taste," the company added.
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