Pepsi's drink sales bounce back — now it's exploring the wild world of alcohol
But I ordered a Coke... Tell that to Pepsi. The beverage giant bounced back to growth last quarter. People are driving more, meaning more Pepsi pit stops at 7-Elevens and gas stations. Pepsi's drink sales grew 6%, up from a 7% plunge the previous quarter. Meanwhile: snack sales continued to thrive as we have Pepsi's Quaker Oats for breakfast, its Rice-A-Roni for lunch, and its Cheetos for Netflix.
No one is carding Pepsi... After 127 years of being soft, Pepsi is considering going hard, according to its CEO. Coca-Cola just teamed up with Molson-Coors to launch its 1st alcoholic drink in a while: Topo Chico Hard Seltzer. But alcohol makes things complicated...
- "The three-tier system" of alcohol sales in the US means that boozy drinks must be made, distributed, and sold by separate companies.
- That's why there's no Smirnoff store. You're picking up vodka at Walmart or Big Joey's Liquor (the sellers). Smirnoff-maker Diageo has to partner with other companies (the distributors) to get it to Walmart and Joey's.
If Pepsi gets in on a trend, it’s a post-trend... The bigger and older a corporation is, the less quickly it's usually able to move. White Claw launched four years ago and controls over half the US hard seltzer market, followed by Boston Beer's Truly. Now Coke and Corona-maker Constellation Brands are hard seltzer-ing too. If Pepsi does go hard, it'll have to do something special to stand out from the crowded sparkling playing field.