The news of PepsiCo’s first foray into hard drinks rocked the beverage industry last week. PepsiCo (NASDAQ: PEP) announced that it will be forming a new company to launch HARD MTN DEW, a spiked version of its Mountain Dew brand. Production and development will happen via a collaboration with the Boston Beer Company, makers of the popular hard seltzer Truly.
With 5% ABV and zero sugar, HARD MTN DEW will be introduced in three flavors – Black Cherry, Watermelon, and Original.
Hard Seltzer News reported in October of 2020 that PepsiCo was seeking the right partner with whom to venture into alcohol sales, and it chose one of the largest big players. In addition to Truly, the number two selling hard seltzer in the US, Boston Beer also makes Angry Orchard Hard Cider, Twisted Tea Hard Iced Tea, and one of the OGs of craft beer, Sam Adams.
The Boston Beer company will handle production and development of HARD MTN DEW. For its part, Pepsi “has set up a new entity to sell, deliver, and merchandise the product,” according to a statement announcing the collaboration.
Given the anticipation for Pepsi’s move into hard drinks, the company certainly chose an iconic brand from its portfolio with which to make its alcoholic debut.
“For 80 years MTN DEW has challenged the status quo, bringing bold flavors and unmatched beverage innovation to millions of fans,” said Kirk Tanner, PepsiCo Beverages North America CEO.
“The Boston Beer Company partnership combines two recognized leaders in our respective industries to address the changing tastes of drinkers and we are thrilled at the opportunity to create HARD MTN DEW that maintains the bold, citrus flavor fans know and expect.”
Hard as a Rockstar
Given that beverage alcohol will soon have their own dedicated division of PepsiCo, fans and analysts alike are wondering which beloved brand will be the next to get a hard spinoff.
There are some signs that Rockstar could be the next hard beverage from Pepsi’s new line of alcohol. In June, Hard Seltzer News reported that the beverage company filed for trademark protection with intent to sell alcohol under the Rockstar energy drink brand.
The June 14 filing included beer, hard fruit cocktail, flavored malt beverages (FMBs), and of course hard seltzer.
The news was first noted on Twitter, when lawyer and trademark specialist Josh Gerben commented on the meaning of the filing.
“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.
Hard Rockstar has reportedly been in the works for several years. In 2017, prior to its sale to Pepsi, the company filed for trademark protection for the phrases “Rockstar Punch” and “Rockarita,” yet those applications were abandoned after the company failed to develop those products.
PepsiCo acquired Rockstar for $3.85 billion in 2020, after the energy drink company yielded $851 million in sales in 2019 alone according to Investopedia. Rockstar is available for sale in 30 countries and comes in 30 different varieties.
Given its recent filings, evidence suggests that Rockstar very well may be the next PepsiCo brand to get its own spiked version.
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