PepsiCo (NASDAQ: PEP) announced it has partnered up with Boston Beer (NYSE: SAM) to create an alcoholic version of Mountain Dew. Boston Beer will be able to provide its expertise in alcoholic beverages, while PepsiCo will bring its most iconic beverage brands to the table.
The new beverage, named Hard Mtn Dew, is expected to launch in 2022. It will be developed and produced by Boston Beer but delivered and marketed by Pepsi. Hard Mtn Dew will consist of 5% alcohol and be categorized as a malt beverage.
“We know that adult drinkers’ tastes are evolving, and they are looking for new and exciting flavorful beverages. The combination of our experience in brewing and developing the best-tasting hard seltzers and hard teas, and MTN DEW, a one of kind multi-billion dollar brand, will deliver the excitement and refreshment that drinkers know and love,” said Dave Burwick, Boston Beer’s CEO.
Pepsi has long strived to utilize Mountain Dew to expand into new markets, such as energy drinks. The company introduced Mtn Dew Rise Energy at the beginning of 2021. Mountain Dew is currently ranked fifth within the carbonated soft drinks, according to Euromonitor.
“For 80 years MTN DEW has challenged the status quo, bringing bold flavors and unmatched beverage innovation to millions of fans,” said Kirk Tanner, PepsiCo Beverages North America CEO. “The Boston Beer Company partnership combines two recognized leaders in our respective industries to address the changing tastes of drinkers and we are thrilled at the opportunity to create HARD MTN DEW that maintains the bold, citrus flavor fans know and expect.”
Pepsi shares rose under 1% in trading Tuesday and have risen 4% year-to-date, with a current market value of USD213.88 Billion.