PepsiCo to launch new Sprite competitor to target Gen Z

PepsiCo has a new Sprite fighter in its arsenal.

Starry, a lemon-lime soda said to be replacing the beleaguered Sierra Mist, has begun showing up in retail stores over the past few days.

Online soda sleuths have been on Starry’s tail since August, when PepsiCo first registered the Starry trademark and Starrylemonlime.com domain names. The drink was presented to convenience store operators at a National Association of Convenience Stores conference in October. This week, Starry began arriving at retail stores including Kroger, Circle K and Walmart, according to multiple internet posts. The drink comes in regular and zero-sugar versions.

VaynerMedia has the creative account, and Mrs&Mr did the design, according to people familiar with the matter. PepsiCo has held off on publicly discussing launch details, but a spokeswoman said information would be released shortly.

The brand is figuring in PepsiCo’s retail promotions around the Super Bowl, but would not be getting a Super Bowl commercial, according to people familiar with the matter.

PepsiCo appears to be hoping a revamped lemon-lime soda helps it better compete with Coca-Cola’s Sprite, which dominates the category.

Sierra Mist held less than 0.1% dollar share among carbonated soft drinks at retail through the first three quarters of last year, compared with Sprite’s 6.9% share, according to Beverage Digest figures.

Starry represents just the latest attempt by PepsiCo to take a bite out of Sprite: It introduced Slice in 1984; Storm in 1998; and Sierra Mist in 2000. Pepsi tried a variety of formulation and packaging changes over the years for Sierra Mist, to little effect.

“They’ve changed direction on the brand many times, turning it into an all-natural lemon lime a few years ago, then they briefly changed the name to Mist Twst. It’s a brand they’ve never been able to figure out the algorithm for,” said Duane Stanford, editor of Beverage Digest, an industry publication.

Starry would appear to be placing its bets on something rival Sprite has done successfully: market to young consumers.

Packaging on promotional materials for Starry describes it as “a purpose-driven brand built for Generation Z,” and “[a] crisp, refreshing formula with a bite to win share and grow the category.” The packaging said Starry offers “a fun escape” and “a mental recharge” while “taking steps on sustainability.”

Stanford said that would indicate a taste profile that’s likely sweeter than Sierra Mist with heavier carbonation as it aims toward the multicultural palates of younger consumers.

“They don’t want to be another also-ran, they want to make sure they’re looking out for what’s next,” Stanford said. “A kick to the flavor is a way to do that, and not just go after a market that’s already been captured.”