PepsiCo has been hesitant to jump into the hard beverage space, but today it announced the company is inching a little bit closer… sort of.

Today Pepsi announced the launch of Neon Zebra, its new line of non-alcoholic cocktail mixers. Neon Zebra, which comes in a 7.5 oz. can, will be introduced in four varieties: citrus-flavored Margarita mix, strawberry-lime-flavored Strawberry Daiquiri mix, lime-mint-flavored Mojito mix and a lemon-flavored Whiskey Sour mix.

Consumers need simply add 1.5 oz. of liquor to half a can of Neon Zebra for an instant homemade cocktail. The new mixers will be available starting March 1.

PepsiCo hasn’t yet ruled out a move into the alcohol industry, and Neon Zebra provides the soft drink company with a safer way to test the waters.

“We look at every opportunity,” said CEO Ramon Laguarta of a potential Pepsi hard seltzer. “We will make decisions in the coming quarters whether this is an area where PepsiCo wants to play,” he said.

In the meantime, the company is excited to take on the word of non-alcoholic mixers for the first time.

“We saw this mixer category growing quite rapidly over the past few years,” said Emily Silver, VP of innovation and capabilities for PepsiCo Beverages. She noted that consumers ages 21 to 30 have been “increasingly” drinking cocktails at home as bar and restaurant closures have forced sales off-site.

“This was true before Covid. It’s only accelerated during Covid,” she said, adding that she expects this trend to continue past the pandemic.

Before Covid closures hit the restaurant and bar industries, many bartenders and mixologists were beginning to use cleaner ingredients to craft their cocktails. Many started making their own mixers in addition to using fresh fruit juices.

Silver and her team picked up on the trend and brought it to their new mixers. Neon Zebra is made with fruit juice and uses no artificial sweeteners. It does, however, contain a fair amount of sugar – 36 grams per can, or 18 grams per suggested serving.

The can’s small size is by design, in an effort to distinguish themselves in the crowded mixer space; mixers typically come in larger plastic bottles. If you’re stocking up for a party, it is nice to be able to buy smaller quantities of different mixers, making the small cans a convenient choice.

“Mixers are traditionally in these big bottles,” said Silver. “You may buy one for a party … drink a little of it, and then it sits in the fridge, sometimes for years,” Silver said. Neon Zebra will be sold in single flavor 6-packs, with a suggested retail price of $7 to $8 per pack.

Pepsi’s news comes right before its main rival – Coca-Cola – is set to re-enter the US alcohol market for the first time in nearly 40 years. Through a partnership with Molson Coors it will soon release Topo Chico Hard Seltzer, a spiked and sparkling drink inspired by the iconic Mexican mineral water which Coke acquired in 2017. Topo Chico Hard Seltzer is already available in select Latin American and European markets, to much acclaim.

Erin Grafton
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