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Diving overview:
- PepsiCo is enhancing its protein offerings with new options across its three beverage brands as nutritional beverages continue to drive sales across the industry.
- The new line, which will launch early next year, includes updates to the Propel, Muscle Milk and Starbucks Coffee brands.
- The food and beverage giant is aiming to stand out in a crowded market by emphasizing how its drinks can improve health outcomes rather than just promoting the amount of protein grams per drink.
Dive Insights:
during PepsiCo earnings release Last week, executives pointed to protein as a growth opportunity for the food and beverage giant. With the new product launch, PepsiCo hopes to create a protein-enhanced beverage that customers can consume multiple times throughout the day.
“We are focused on delivering protein in a way that works for the body, rather than simply increasing the number of grams,” Ram Krishnan, CEO of PepsiCo Beverages, said in a statement.
Propel Clear Protein is a flavored powder mix with added electrolytes and fiber, and this launch is intended to take the brand deeper into the functional hydration space. The product is targeted at users of GLP-1 drugs, PepsiCo CEO Ramon Laguarta said on the call. He said fiber could be the next trend in functional beverages.
As consumers seek more health benefits from their beverages, companies like PepsiCo are seizing the opportunity to innovate with new ingredients.
“There will be many years of innovation opportunities for us as we see consumers looking for more functional solutions in their beverages that are not currently available in the market,” he said.
PepsiCo also plans to reformulate Muscle Milk to have a softer, more jiggly feel. Laguarta said the company’s goal is to provide consumers with a drinkable alternative to meals and snacks.
PepsiCo is positioning Muscle Milk as the only ready-to-consume protein beverage without added artificial sweeteners and colors. To support the change, CPG giants are modernizing their packaging.
The third beverage that PepsiCo is targeting is coffee through its North American coffee partnership with Starbucks Coffee. Protein-fortified drinks add protein, fiber, vitamins, and minerals.
Protein innovation is part of PepsiCo’s broader strategy to add better-for-you options to its portfolio. Earlier this year, the CPG giant released some versions of its own. Popular products Without artificial colors and flavors.
