Buzz
In their relentless quest to outshine competitors in the long-standing cola rivalry, Pepsi believed they had discovered the ultimate idea to differentiate themselves. By 2002, the brand was ready to launch a berry-infused soda designed to revolutionize the beverage industry and win over the hard-to-please teenage demographic.
While focus groups adored the flavor, they had a single request: Turn it blue.
This decision paved the way for the debut of Pepsi Blue, the first-ever cola that resembled antifreeze or glass cleaner. Initial feedback hinted at its potential popularity, suggesting Pepsi could stand toe-to-toe with Coca-Cola's latest creation, Vanilla Coke. It marked one of Pepsi's most daring moves to date.
Blue Period
Similar to the infamous Hatfield and McCoy feud, Pepsi and Coca-Cola had been engaged in a fierce rivalry since the early 1900s, employing countless tactics to dominate the market. From Crystal Pepsi, the transparent soda introduced in 1992 that tapped into America’s fascination with see-through products, to Pepsi Points, a promotion that famously led a 21-year-old business student to attempt claiming a Harrier jet in 1996 after interpreting a TV ad literally (unsuccessfully, of course).
Pepsi’s most daring strategy emerged that year when they replaced their iconic can design with an electric-blue makeover. As part of a $500 million campaign, the company even paid Air France to paint a Concorde jet blue. Celebrities like supermodels Cindy Crawford and Claudia Schiffer, along with tennis legend Andre Agassi, starred in ads to promote the vibrant new branding.
After saturating the market with clear beverages, branded merchandise, and celebrity endorsements, Pepsi drew inspiration from one of its flagship products, Mountain Dew. In May 2001, they introduced Mountain Dew Code Red, a cherry-flavored variation of the classic citrus drink. It became an instant sensation, climbing into the top five best-selling soft drinks in convenience stores within just three months. Another surprise success was Mr. Green, a tea under the SoBe brand. These triumphs hinted that experimenting with bold colors might lead Pepsi to its next big hit.
The company then embarked on a nine-month research phase, exploring over 100 concepts. Executives were convinced that the secret lay in captivating the teenage demographic, who had embraced the novelty of Code Red and were seeking even more unconventional beverage options.
“Teens are always in tune with the latest trends,” stated Pepsi spokesperson Dave DeCecco in 2002. “After experimenting with hundreds of flavor options, they insisted, ‘It has to be berry... make it berry. And make it blue.’”
Pepsi, perhaps overlooking the fact that focus group teens might not be the most reliable business consultants, decided to follow their recommendations. In May 2002, Pepsi Blue was unveiled just one day before Coca-Cola launched Vanilla Coke. The company claimed its “berry cola fusion” would capture market share through innovative marketing tactics.
A standout feature of the campaign was Pepsi’s decision to avoid selling Pepsi Blue in large 2-liter bottles typically bought by parents for family consumption. Instead, the drink was packaged in single-serving translucent bottles, perfect for teens grabbing a quick refreshment from convenience store coolers. Pepsi aimed to make the drink a teen-exclusive by removing the parental influence.
To Dye For
The success of any food or beverage ultimately hinges on its flavor. Unfortunately, Pepsi Blue fell short in this regard. Although the product was explicitly aimed at 12- to 17-year-olds, older consumers found the berry-flavored concoction less than impressive.
“It’s absolutely revolting,” remarked an anonymous acquaintance of newspaper columnist Heather Larson Poyner. “The flavor is overwhelmingly synthetic, with a strange, tingling aftertaste.”
“It tastes like a Crayola, but not nearly as enjoyable,” commented another.
Teens, however, were more enthusiastic. “That’s actually pretty good,” remarked one young participant interviewed by The Gazette in Montreal. “It has a distinct berry flavor.”
“It’s refreshing and not overly sweet,” added another.
“I’d definitely purchase it,” stated another participant.
Few shared that optimistic view. By targeting teens, Pepsi inadvertently excluded a significant portion of potential consumers, a mistake the company acknowledged in 2003. In 2002, Pepsi Blue sold 17 million cases, a far cry from the 90 million cases Vanilla Coke achieved.
“The issue with Pepsi Blue was its limited appeal—it resonated strongly with teens and young adults but failed to capture a wider audience,” explained Katie Lacey, Pepsi’s vice-president of marketing in North America. “One key takeaway was that colas might be better off staying brown.”
Like many fad products, Pepsi Blue had a short lifespan. It mostly vanished by 2004, though it remained available in countries like Indonesia. In 2021, it made a comeback in the United States as a nostalgic promotional item. Once considered a market failure, Pepsi now hailed it as a “cult classic.”
