PepsiCo, the second largest food and beverage business in the world, will for the first time introduce a new product exclusively through the e-commerce giant Amazon. The product to be introduced online is a naturally sweetened soda called Pepsi True. Pepsi True will have a distinctive green packaging (emphasizing on the natural ingredients used to sweeten the drink) will contain 30% less sugar than any of its predecessors – except for its diet products, of course. It promises to have the “real cola taste” with no artificial sweeteners and no high fructose corn syrup added (both of these are heavily attacked by nutritionists and health professionals).
According to business analysts, the launch of the True brand through Amazon has the goal to better assess the demand for such a product, and offer the company insight about where it is in the greatest demand for a possible larger scale launch in the future. This is a great example of how food and beverage manufacturers are exploring alternative distribution methods, like e-commerce, in their quest for growth. PepsiCo is not the only food and beverage manufacturer that explores distribution through Amazon. Kraft, for example, has started selling Jell-O molds with university mascots through the e-commerce giant, and Coca-Cola plans to re-introduce a previously discontinued product (Surge) through the same channel in the near future.
Selling its products online is a yet unexplored territory for Pepsi, and it comes with both risks and opportunities. For one, the huge product variety available at the online giant makes it hard for a product to stand out in any way. In the long run it also comes with the risk of pushing down the retail prices for this product category, as it did with e-books back in the day.
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Pepsi’s move comes in the context of a continuous decline of soda sales in the United States. Consumers have become more health-conscious, shifting away from high fructose corn syrup and artificial sweeteners as well. True has the potential to turn the situation around, providing its customers with a “mid-calorie” product using Stevia, a plant-based sweetener that has become trendy in the last few years.