Mtn Dew is one of three core beverage brands PepsiCo has pledged to turn around after share losses dating back to 2017. In a July 9 interview after PepsiCo reported second-quarter earnings, CFO Hugh Johnston said higher spending on Mtn Dew will show up in the second half of the year. He added that PBNA’s more localized approach to the market will help spur performance for a brand that has significant regional appeal. The upper Midwest and the Carolinas, for example, are much stronger markets for Mtn Dew than other parts of the country. “So the answers in those markets are going to be very different than they are in the Northeast and in the West Coast markets,” Johnston said. “The field structure should help quite a bit with getting the Mountain Dew business optimized.”
Data. Mtn Dew’s volume share fell 0.2 share points to 7.9 at retail during the first half of this year. Dollar share declined by 0.3 share points to 8.9. Volume fell -4.6%, while dollar sales declined by -0.4%.
Priorities. The Dew focus follows work to regain shelf space and marketing investment for brand Pepsi, and to regain footing for Gatorade by launching and expanding Gatorade Zero, Johnston said. “We have an opportunity in Mountain Dew to recover share,” CEO Ramon Laguarta said during a July 9 earnings call with investors.
Energy Play? During the same call, Laguarta called out Mountain Dew Game Fuel as an example of how the company is “trying to move Dew into the energy category in small steps.” Added Johnston: “We’re selling basically every bit of Game Fuel that we can make.”
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