3/9/22

PepsiCo is following Coca-Cola in seeking a way into alcohol beverages. Like Coca-Cola, their way in will be done through a partnership with an established alcoholic beverage producer. In Coca-Cola’s case, that partnership was made with Molson Coors. PepsiCo will be partnering with the Boston Beer Co., the makers of Sam Adams.

Released February 20th, PepsiCo’s contribution to the alcohol market is Hard Mtn Dew. Though officially released, it will only be so within select locations for the time. Four flavors will be available: black cherry, baja blast, original Mountain Dew flavor, and watermelon. It will be 5% ABV, but without the sugar and caffeine that non-alcoholic Mountain Dew has in spades.

Credit: Hand-out | The Boston Beer Company, Inc.

Executives at Pepsi are excited about the strategic advantage achieved with such a move. They feel that it will be a viable money maker amid dwindling sales within their soda ranks. However, they have made it clear that Pepsi is not yet interested in becoming a full-fledged alcoholic beverage producer. The goal right now is simply to access an untapped market with select products. A partnership with Boston beer company enables an easier path to those products by using the beer-maker’s expertise.

PepsiCo, under the terms of the partnership, will be in charge of selling, delivering, and merchandising Hard Mtn Dew. Boston Beer Co. will be responsible for development and production.