Pepsi Executive Predicts Sierra Mist Will Pass 7UP.
Suggests Brand's Volume Will Hold.

Pepsi executive says Sierra Mist will "absolutely" be bigger than 7UP. Pepsi "has been working" on lemon-lime segment for years, notes Pepsi North America vp flavors Cie Nicholson. Declares: "We think we've finally cracked the code." Adds 7UP and Sierra Mist "lines (will) cross at some point, but it's hard to predict when that will happen."

Details. Nicholson says Sierra Mist volume up +34% YTD in existing markets, which constitute about "60% of the country." Notes brand now has system and geographic alignment: "We don't have as many retailer-customer gaps." Adds Sierra Mist ads are better: "We've done advertising in the past, but now we have appropriate advertising (and) huge media plan." Also notes that, as "a core brand," Sierra Mist participates in all Pepsi CSD national promotions, which it couldn't do before this year.

Bottling system. Nicholson says Pepsi bottlers have rallied behind Sierra Mist. Declares system is "completely behind getting us to have a third major trademark along with Mt. Dew and Pepsi." Notes display activity is up: "We're getting a lot more display ... It's on every end-cap we have, next to Pepsi, Mt. Dew and Diet Pepsi."

Ahead. Asked if Sierra Mist will follow suit of other new CSD products which are losing much of their initial volume (BD 5/9/03), Nicholson predicts that won't happen. Says brand is sourcing some of its volume from 7UP and Sprite, and "there is no real reason for people to switch back." Also notes, "it will stay on core displays. This is not a one-year, one-hit wonder for us." Acknowledges that with new products, there is always some trial volume "that you don't get back," but says Sierra Mist "trial and repeat scores ... are beating all the recent introductions, even the Vanilla Cokes of the world." Adds repeat rate "is highest we've seen relative to competition ... Over 40% of people are continuing to repeat the product, once they buy it."