PepsiCo is Boston Beer to create a Mountain Dew alcoholic beverage

Boston Beer Company and PepsiCo today announced plans to enter into a business partnership to produce a HARD MTN DEW alcoholic beverage.

Source: Boston Beer Company

PepsiCo and Sam Adams, the Boston Beer brewery, teamed up to create an alcoholic version of Mountain Dew.

Boston Beer will develop and produce the beverage, called Hard Mtn Dew, while Pepsi has created a new entity to sell, deliver and market the product. The drink is expected to hit shelves in early 2022.

Hard Mtn Dew belongs to the category of flavored malt beverages and contains 5% alcohol by volume. The first images of the products also show that they contain zero sugar.

The first suggestion that Pepsi could fall into the alcohol category came in October, when Pepsi CEO Ramon Laguarta told analysts the company would consider the move. It followed an announcement by rival Coca-Cola that it would create Topo Chico Hard Seltzer, its first alcoholic beverage for American consumers in decades, through a partnership with Molson Coors Beverage. Pepsi also filed a trademark application in June to sell Rockstar brand beer and hard seltzer.

Pepsi has been trying for several years to use the weight of the Mountain Dew name to transform soda into new categories, such as energy drinks. The company launched Mtn Dew Rise Energy earlier this year. According to Euromonitor, Mountain Dew holds about 7% market share in carbonated beverages, placing it in fifth place.

For Boston Beer, the partnership with Pepsi comes as a struggle for the company’s products. In its last quarter, the company’s rosy projections for its really tough Seltzer have been hit with a reality check, causing the stock to drop 26% in one day and the brewery has cut the forecast for the entire year. ‘year.

Meanwhile, the beer category as a whole has struggled. Last year, the overall volume of beer fell 2.8%, despite total alcohol consumption growing from its highest rate in nearly two decades, according to industry tracker IWSR. Boston Beer also recently announced a partnership with Beam Suntory to bring its iconic brands into nine categories.

Shares of Boston Beer were up more than 2% Tuesday. The stock market has fallen more than 32% since January, putting its market value at $ 8.2 billion.

Shares of Pepsi grew slightly in trading on Tuesday. The stock exchange has gained 4% annually to date, and its market value is $ 213.3 billion.

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