PepsiCo recently filed for trademark protection with intent to sell alcohol under the “Rockstar” brand.  It is looking more likely that Pepsi will soon follow Coca-Cola into the hard seltzer space.

According to a filing from June 14, PepsiCo (NYSE: PEP) is looking at Rockstar beer, hard fruit cocktails, malt beverages, and hard seltzer. No word yet on when consumers can enjoy these new ways to party like a Rockstar.

Pepsi Revamping Rockstar

Founded by Russ Weiner in 2001,  Rockstar Energy was acquired by PepsiCo for $3.85 billion in 2020. It comes in 30 different flavors and is currently available in 30 countries. According to Investopedia, Rockstar’s sales topped $851 million in 2019.

Rockstar toyed with the idea of releasing a hard version prior to its sale to PepsiCo, as indicated by filings for trademarks for “Rockstar Punched” and  “Rockarita” in 2017. The spiked products were never developed, however, and those applications were abandoned.

Rockstar with Alcohol

Trademark specialist and lawyer Josh Gerben first noted the new filing on Twitter on Friday.

“The fact that PepsiCo made this filing signals they are very much considering a product launch around beer and hard seltzer,” Gerben said in a message.

So far the beverage company has been tight lipped about the news, but PepsiCo has been flirting with the idea of releasing its own hard drinks for months. The topic was discussed in the company’s third quarter earnings call last October.

At the time, chief executive officer Ramon Lagurta said the company was still weighing its alcoholic options, but planned to “make a decision in the coming quarters.”

Coca-Cola’s Hard Entries

The news from Pepsi comes a few months after its biggest rival released its own hard seltzer. The Coca-Cola Company released its Topo Chico Hard Seltzer to US Markets in late March, and it has so far received rave reviews. Coke acquired the iconic Mexican mineral water brand in 2017.

The Coca-Cola Company isn’t stopping with Topo Chico, either. A Ranch Water version of the hard seltzer will soon follow the original variety pack.

The beverage company has also recently signaled that it may bring Lemon-Do, an alcoholic lemon drink currently available only in Japan, to American markets. Hard Seltzer News reported that Coca-Cola applied for trademark protection with an intent to use in interstate commerce for Lemon-Dou, a “lemon flavored beer.”

Other Energy Drink Moves into Hard Seltzer

One of Rockstar’s main competitors, Bang Energy, released its own MIXX hard seltzer earlier this year. At one point Bang’s parent company, Quash Seltzer LLC, even sued PepsiCo for interfering in the release.  But Pepsi helps Bang by distributing its energy drinks.

Bang had attempted to end its agreement with Pepsi, but after resistance from the Pepsi legal team, sued to have it nullified. That lawsuit was filed by Bang in early December, 2020. An arbitrator quickly ruled that Pepsi had the right to continue as exclusive distributor until the end of the agreement’s original term, or October 2023.  According to PepsiCo CEO Ramon Laguarta, “the Bang business has stabilized and actually growing very nicely.”

Coke partnered with Molson Coors for the domestic release of Topo Chico Hard. Due to the US’s complicated three-tiered alcohol distribution system, PepsiCo will likely need its own partner to help them navigate the hard side of beverage distribution. No word yet on who the Rockstar distribution partner may be.

There is still no word from Monster Energy on whether they will follow Rockstar into the spiked space.  “We are still looking at the market,” co-CEO Rodney Sacks told analysts during a recent earnings conference call. “All I can really say is just that we are addressing it, but you shouldn’t assume that we are definitely going to go ahead or definitely not going to go ahead or how.”

Neon Zebra Mixers

In March of this year Pepsi inched a little bit closer to alcohol sales, releasing its first ever cocktail mixer, Neon Zebra. Consumers need only add a recommended 3 oz of liquor in order to enjoy two perfectly mixed cocktails.

Sold in 7.5 oz cans, Neon Zebra is available in four flavors: citrus-flavored Margarita mix, strawberry-lime-flavored Strawberry Daiquiri mix, lime-mint-flavored Mojito mix and a lemon-flavored Whiskey Sour mix.

Neon Zebra just partnered with comedian Billy Eichner in order to increase brand awareness. In its funny new campaign, Eichner gives us tips on how to “IRL Again” as we ease back into social situations after 15 months cooped up at home.

“Who better to shake us out of our comfort zone and help ease the transition back from virtual to real life?” the brand said of its partnership with the “Billy on the Street” host in a statement.

Will a ready-to-drink (RTD) spiked version of Neon Zebra follow the hard Rockstar line to market? Will Rockstar hard drinks contain caffeine like the brand’s popular energy drink? Will Monster Energy ever commit either way? We’re excited to learn more about PepsiCo’s new venture in the coming months.

Erin Grafton
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