PepsiCo's New Coffee Drink Offers Twice As Much Caffeine

Coffee lovers will be treated to a PepsiCo, Inc. PEP beverage next year which promises to offer twice as much caffeine compared to a traditional Pepsi, the company said in a Thursday press release.

What Happened

Pepsi Cafe will be offered to two consumers in two flavors, including original and vanilla, according to the press release. The beverage balances "just the right touch" of Arabica coffee with the familiar taste of Pepsi. Management has been exploring blending its traditional beverage with coffee for years and has now found the "perfect balance."

"We are confident that cola fans, iced coffee drinkers and anyone in need of an extra caffeine boost will love the unexpected flavor medley of roasted coffee infused into the refreshing, crisp flavor of Pepsi," PepsiCo VP of Marketing Todd Kaplan said in the press release.

Why It's Important

The decision to enter the cold coffee beverage segment is consistent with the company's strategy of evolving to changing consumer beverage preferences, according to Bloomberg. Most notably, consumers are shying away from beverages with large amounts of sugar

What's Next

Pepsi Cafe Original and Pepsi Cafe Vanilla will start selling at major national retailers in April 2020. For the time being PepsiCo will not be forced to compete against rival Coca-Cola Co KO who sells its own cold coffee beverage in certain international markets.

Related Links

Morgan Stanley: Buy PepsiCo's Fizz Over Keurig Dr Pepper

Analysts React To PepsiCo's Q3 Beat