Image: PepsiCo
PepsiCo has announced the launch of a new lemon-lime soda called Starry, which will replace its previous lemon-lime product Sierra Mist. This eye-catching new drink is being marketed to Gen Z with the online-inspired tagline “Starry hits different”.
“We know there is strong demand for lemon-lime-flavored soda, with the category continuing to gain momentum,” said Greg Lyons, PepisCo’s chief marketing officer for North American beverages, in a press release. “With one product dominating the category, consumers deserve another option. STARRY is bright, upbeat and rooted in culture and fun.”
What is the “a product that dominates the category” that Lyons is referring to? fuel Starry represents PepisCo’s latest attempt to wrest market share from its dominant rival, the Coca-Cola brand. That’s exactly what Sierra Mist was designed for when PepsiCo launched it in 1999, but it makes sense that the company would want to move away from Sierra Mist in 2023. According to Beverage Digest, “Sierra Mist is pretty much out of the retail market with less than a $0.1 share of carbonated soft drinks. Meanwhile, Sprite held a $6.9 stake in CSDs after growing +17% in the first half [2022].”
A History of Pepsi’s Lemon-Lime Soft Drinks
Taking on Sprite is no easy feat, and Starry isn’t PepsiCo’s first lemon-lime flavored rodeo. The food and beverage giant has tried a few different brands over the past few decades, but none have really held up.
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In the 24 years since its release, the Sierra Mist has been mired in an identity crisis, with confused branding that has rendered the soda largely unsuccessful. Originally sweetened with high fructose corn syrup, Sierra Mist switched to cane sugar in 2010 to appeal to a more health-conscious consumer. In 2014, they went a step further and produced Sierra Mist with the sugar substitute stevia.
More changes would follow. In 2016, Sierra Mist was rebranded as Mist Twist, eliminating cane sugar and stevia and going back to using high fructose corn syrup. But Mist Twist wasn’t a hit, and the company dropped the nickname and returned to Sierra Mist in 2018. phew! That’s a lot of changes to a brand that just couldn’t figure out how to compete with its main competitor.
And if you think that’s giving you a headache, be aware that Sierra Mist wasn’t even PepsiCo’s first foray into the lemon-lime beverage category. In fact, PepsiCo has long sought to become a leader in this category, with little success — but it hasn’t stopped trying because, according to Starry’s press release, “demand for lemon-lime soda has never been greater, with growth.” in the Acceleration category since 2019.”
PepsiCo’s first attempt at Lemon Lime was Teem, which debuted in 1960 to compete with 7UP. Teem was discontinued in 1984 due to declining sales — though PepsiCo may have had the last laugh with 7UP. In 1986, the company acquired the brand’s international distribution rights.
Slice was the brand PepsiCo launched to replace Teem, but Slice also failed to maintain long-term relevance; it was discontinued in the early 2000s. Then came Storm, another attempt to revitalize PepsiCo’s presence in the lemon-lime space. Storm had flashy packaging and contained caffeine (Sprite didn’t), but despite its high-profile Star Wars cross-promotion, it didn’t survive product testing.
Starry and the Future of PepsiCo Lemon Lime Soda
Will Starry be the Lemon Lime Soda that finally sticks? It will be interesting to see how Starry stacks up against industry leader Sprite, particularly among its target audience of Gen Z consumers. According to a 2018 report on Gen Z spending habits, Food Dive wrote that “Gen Zs are less sugary Consume soft drinks. However, this demographic may be interested in the low-sugar and no-sugar offerings that soda companies are rolling out.” With a no-sugar option in its lineup, Starry appears strategically positioned to meet these consumers where they are.
As Gen Z matures and their purchasing power grows, it’s prudent for beverage companies to have a lot to offer this market segment. But whether Starry represents a positive change of direction or just another attempt by runner-up to topple Sprite remains to be seen.