For decades Coca-Cola (KO) – Get a free report and PepsiCo (PEP) – Get Free Report fought over who had the better tasting coke. This led to the famous “Pepsi Challenge” marketing campaign, which started in 1975 and has been used regularly ever since.
The premise was simple. People were asked to try both Pepsi and Coke in a blind taste test, and Pepsi was the overwhelming winner, at least according to the ads.
In reality, people swear by one brand over the other, and the question “which is better?” is really just for marketing campaigns and individual taste.
Coke and Pepsi’s battle for supremacy has spanned every possible soda space. Both recently changed their “zero-sugar” recipes (using the word diet is now taboo). And PepsiCo also recently discontinued its lemon-lime brand, Sierra Mist, replacing it with Starry, a new attempt to dethrone Coke’s Sprite.
In recent years, this fight has expanded beyond soda to include juice, water, energy drinks, iced teas and more. That’s largely because US soda sales peaked in 1999.
“After peaking in the late 1990s, per capita consumption of soft drinks has fallen every year since,” IbisWorld wrote. “There are two reasons for the decline: growing health awareness and price increases. Carbonated soft drinks offer little nutritional value, although many of these drinks provide all of the recommended daily sugar intake in a 12-ounce can.”
This is a look at why. In fact, it’s also possible that consumers simply have a lot more choice and are opting for other beverages.
Image source: Shutterstock
Coca-Cola moves into mixers
Recently, Coke and Pepsi have been dipping their toes into alcoholic beverages. This is an adjacent area where both have chosen to work with partners.
In June 2021, PepsiCo launched a new line of alcohol-free mixers designed to capitalize on the growing craft cocktail market.
“The premium mixers called Unmuddled will be hitting shelves in September,” Spirit Business reported at the time. “The range is available in three flavors that are made with juice and contain no artificial sweeteners.”
Pepsi’s Unmuddled line includes:
- Lemon Mint, which the company described as “cool, tangy, refreshing, and light,” with a herbal note that pairs well with tequila, gin, or whiskey.
- Fiery Pineapple matches its namesake fruit with a spicy kick and is recommended for mixing with vodka, rum, tequila or mezcal.
- Spiced Mandarin designed to mix “seamlessly” with any spirit, although tequila, gin or whiskey are recommended
A few months prior to the launch of Unmuddled, PepsiCo released Neon Zebra, another line of non-alcoholic mixers.
“They’re designed to appeal to younger consumers who are spending more time at home and want to avoid complicated cocktail recipes or large-scale mixers,” RetailDive reported.
Now, Coca-Cola has followed its longtime rival into the craft cocktail maker space.
Coca-Cola’s Simply brand is launching a blender line
Coke’s Simply brand was one of the company’s juice endeavors. Its core line offers juices, sodas, and almond milk that are marketed as all-natural. Now the brand has moved into cocktail mixers with an offering called Simply Mixology.
“The line of fruity, all-natural flavored juice beverages, made with the same natural ingredients that fans have come to expect from Simply Beverages’ fast-growing portfolio, is designed to be enjoyed with or without alcohol,” said Coca-Cola in a press release.
“Three flavors of Simply Mixology — Strawberry Guava Mojito, Lime Margarita, and Peach Sour — will be available in 52-ounce bottles in the refrigerated juice aisles of grocery stores across the United States beginning January 23.”
Coca-Cola pointed out that the new line addresses several trends: an increase in cocktail consumption and more people drinking non-alcoholic mocktails.
“We know Simply has been a favorite blender for 20 years — you can make a nasty screwdriver with Simply Orange Juice, a great Cape Codder with Simply Cranberry, and a killer margarita with Simply Limeade,” adds Alex Ames, creative director of nutrition , added to Coca-Cola North America.
“With Simply Mixology, we wanted to find a way to simplify and enhance the drinking experience at home with great-tasting, natural solutions that are not only amazing mixers, but also stand on their own as ready-to-drink mocktails.” Added Coca Cola.