Category: Marketing Research

Imagining Sprixa: Market Research, Strategic Fit, and Limitations for a PepsiCo Concept

April 11th, 2025

As part of my strategic exploration for a potential new product launch under PepsiCo, I developed the concept of Sprixa: A sparkling Tea Mocktail, which is a functional, ready-to-drink (RTD) tea that blends wellness, sustainability, and modern lifestyle appeal. The idea came from observing shifting consumer behaviors and growing demand for beverages that offer more than just refreshment. To ensure Sprixa could viably fit into PepsiCo’s offerings and resonate with today’s market, I conducted thorough marketing research.

Market Research and PepsiCo’s Strategic Alignment

Sprixa was designed with PepsiCo’s mission in mind, “Winning with Purpose”, which prioritizes sustainable growth and innovation in response to evolving consumer needs (PepsiCo, 2024). Through market research, it became clear that PepsiCo has already been expanding its portfolio with healthier alternatives, such as LIFEWTR and Pure Leaf, to keep pace with rising wellness trends. Sprixa would complement this with its functional benefits (think: hydration, antioxidants, and stress relief) and eco-friendly packaging, as a natural evolution of PepsiCo.

To validate the concept, I explored both primary and secondary research. While my primary research plan involves future surveys and focus groups for granular insight, my secondary sources (from Mintel, IBISWorld, and industry reports) helped paint a solid picture of today’s consumer landscape. Findings show that both Millennials and Gen Z are actively seeking functional, low-sugar alternatives to sodas and alcoholic beverages (Mintel, 2024; Riebe, 2024). They value clean labels, ethical sourcing, and sustainable packaging, all of which Sprixa would embody.

Industry Trends and Future Implications

The non-alcoholic and functional beverage industry is not just growing; it’s booming. The RTD tea segment alone is expected to exceed $75 billion by the end of 2025, with a CAGR of 1.6% through 2029 (Irigoyen, 2025; Rose, 2024). This upward trend signals a strong opportunity for Sprixa, especially as consumers lean toward beverages that align with both wellness goals and conscious consumption.

However, trends can pivot. One plausible shift could be the increased personalization of wellness beverages, powered by data and tech (Riebe, 2024). Should Sprixa expand in the future, it might need to offer customized or functional variants based on consumer moods or health needs. Another factor to consider is economic uncertainty, which could temporarily deprioritize eco-conscious buying in favor of lower-cost options. These potential changes emphasize the importance of flexibility in marketing and innovation strategies.

Legal, Ethical, and Industry Alignment

The marketing strategy for Sprixa would be developed with transparency and responsibility in mind. All health-related claims will be based on credible research and clearly communicated, in accordance with FTC regulations (Federal Trade Commission, 2013). Ethically, Sprixa would stand firm on fair-trade ingredients, recyclable glass packaging, and equitable branding. This not only supports PepsiCo’s corporate values but also responds directly to consumer expectations around sustainability and inclusivity (Gunter, 2025).

The campaign strategy further ensures Sprixa is portrayed not as a miracle cure, but as a feel-good, better-for-you beverage that enhances daily wellness, a message that stays within industry standards and ethical boundaries.

Strategic Limitations and Data Gaps

While my research has provided valuable direction, there are notable limitations. First, because Sprixa is a concept product, real-world consumer testing hasn’t yet occurred. The lack of primary, brand-specific data such as direct feedback from target demographics limits the precision of my recommendations. Relying on secondary data, though insightful, means I can’t fully predict consumer reactions to unique flavor profiles, pricing strategies, or packaging elements.

Another limitation is the broad generalization of generational behaviors. Not all Millennials or Gen Z consumers behave uniformly, and cultural, regional, or lifestyle differences may significantly impact product adoption. For example, while urban consumers may embrace Sprixa’s sustainability, others may prioritize affordability over packaging ethics.

Lastly, because the beverage industry is rapidly evolving, today’s data may not capture the full scope of tomorrow’s competitive threats or innovation opportunities. This reinforces the need for ongoing research, testing, and market listening if Sprixa were to launch.

Final Thoughts

The development of Sprixa has been an exciting and insightful journey. The research confirms that there is a vibrant and growing space for functional, sustainable beverages within PepsiCo’s portfolio. The brand aligns seamlessly with corporate values, industry momentum, and consumer expectations. At the same time, remaining mindful of emerging trends, evolving consumer behavior, and current research limitations will be essential to ensuring Sprixa’s successful positioning and longevity.

With the right strategy, Sprixa can be more than a new product. It can be a fresh expression of PepsiCo’s mission to meet the needs of tomorrow’s consumers ethically, innovatively, and sustainably.

References

Federal Trade Commission. (2013, December 12). Fair Packaging and Labeling Act: Regulations Under Section 4 of the Fair Packaging and Labeling Act. Federal Trade Commission. https://www.ftc.gov/legal-library/browse/rules/fair-packaging-labeling-act-regulations-under-section-4-fair-packaging-labeling-act

Gunter, M. (2025, March 6). PepsiCo’s Future of Functional Beverages. Megs Topic. https://megstopic.com/2025/03/06/pepsicos-future-of-functional-beverages/

Irigoyen, F. (2025, February). Tea Production in the US. Ibisworld.com. https://my.ibisworld.com/us/en/industry/31192b/performance

Mintel. (2024, June 30). Functional Drinks – US – 2024. Mintel. https://clients-mintel-com.eu1.proxy.openathens.net/report/functional-drinks-us-2024?fromSearch=%3Ffreetext%3Dherbal%2520drinks%26resultPosition%3D12

PepsiCo. (2024). About PepsiCo. PepsiCo; PepsiCo. https://www.pepsico.com/who-we-are/about-pepsico

Riebe, S. (2024, December 31). Alcohol Alternatives – US – 2024. Mintel. https://clients-mintel-com.eu1.proxy.openathens.net/report/alcohol-alternatives-us-2024?fromSearch=%3Ffilters.category%3D29%26last_filter%3Dcategory%26resultPosition%3D2

Rose, A. (2024, March). RTD Tea Production in the US. Ibisworld.com. https://my.ibisworld.com/us/en/industry-specialized/OD4297/about
PepsiCo’s Future of Functional Beverages

March 6th, 2025
A Legacy of Innovation and Responsibility

PepsiCo has long been a major player in the beverage industry, offering everything from carbonated soft drinks to functional wellness beverages. As a leader in innovation, the company continues to evolve, aligning its mission with consumer needs by delivering products that bring joy and nourishment. PepsiCo’s strategy prioritizes growth, enhancing capabilities, and making a positive impact on people, communities, and the planet (PepsiCo, 2024a).

Consumers today expect PepsiCo to maintain its reputation for bold flavors and high-quality beverages while addressing the increasing demand for healthier, functional drinks. Additionally, sustainability-focused customers seek transparency, ethical sourcing, and responsible business practices. The growing popularity of alternative beverage options, particularly within the non-alcoholic and wellness movements, presents a significant opportunity for PepsiCo to expand its portfolio (Mintel, 2024; Riebe, 2024).

Target Market: Health-Conscious and Socially Responsible Consumers

Functional beverages primarily appeal to Millennials and Gen Z—demographics that actively seek clean-label, sustainable, and health-beneficial beverages. These consumers prioritize ethical sourcing and reduced environmental impact, valuing brands that align with their lifestyle choices (Mintel, 2024; Riebe, 2024). With the market for ready-to-drink (RTD) teas projected to surpass $75 billion by 2025 (Irigoyen, 2025), PepsiCo is well-positioned to introduce a sophisticated alternative to sodas, energy drinks, and traditional alcoholic beverages.

Introducing Sprixa: Redefining Social Drinking with Sparkling Tea Mocktails

Sprixa is a RTD sparkling tea, blending functionality with indulgence. This botanical-infused beverage is for consumers seeking a refreshing, non-alcoholic option with premium ingredients and wellness benefits.

Some of the Key Features and Benefits include:
- A Premium Sparkling Tea Experience – Using tea as a base infused with sparkling water and botanicals like hibiscus, chamomile, and lemon balm will create a refreshing yet sophisticated flavor.
- Mocktail-Inspired, Alcohol-Free Alternative – This drink will offer an alternative for alcohol, allowing the consumer to enjoy various social settings.
- Health-Conscious Ingredients – Sprixa will be naturally sweetened with honey or agave, free from artificial additives, and the use of herbs or natural flavorings providing hydration and antioxidants (Mintel, 2024).
- Sustainable Packaging & Ethical Sourcing – The teas will be packaged using 100% recyclable glass bottles with aluminum lids, plus fair-trade organic tea sourcing for minimal environmental impact aligning with Pepsi Co.’s sustainability measures (PepsiCo, 2024b).
By launching Sprixa, PepsiCo can bridge the gap between RTD teas, sparkling waters, and non-alcoholic cocktails, creating a new segment in the functional beverage space.

Research Objectives and Design

To ensure a successful launch, data collection and research will focus on key consumer and market insights:

Research Objectives:
- Consumer Preferences – Identify the flavor profiles, ingredients, and functional benefits most appealing to Millennials and Gen Z consumers.
- Market Potential – Evaluate the market size and growth trajectory for non-alcoholic beverages, especially within the RTD tea and mocktail categories.
- Sustainability Expectations – Assess consumer attitudes toward sustainability and ethical sourcing to inform packaging and ingredient decisions.
- Brand Perception – Analyze how PepsiCo’s sustainability efforts and product offerings influence consumer trust and purchasing decisions.
Research Design:
- Primary Research – Utilize Census data for audience segmentation and surveys to gather quantitative and qualitative insights into consumer behavior.
- Secondary Research – Leverage market reports from Mintel, IBISWorld, and Statista to analyze trends in the RTD tea and wellness beverage market, along with competitive positioning.
The Competitive Landscape: How Sprixa Stands Out

PepsiCo faces competition in the RTD beverage market, but its offerings are distinct. While Pepsi has expanded its portfolio with energy drinks and flavored sparkling beverages, it has yet to introduce a sparkling tea mocktail. Coca-Cola and Monster have already made strides in the RTD tea category, presenting both opportunities and challenges for PepsiCo.

Coca-Cola: Strengths and Weaknesses

Google. (2025). Simply Pop [Image]. Retrieved from Google.com

Coca-Cola holds a strong market presence with popular brands like Gold Peak and Honest Tea, along with newer innovations like Simply Pop, a prebiotic soda designed to support gut health (The Coca-Cola Company, 2025). However, Coca-Cola’s environmental record, particularly its status as the world’s top plastic polluter, presents a significant challenge in today’s eco-conscious market (Dairy News Today, 2025). This lack of commitment to sustainability could put PepsiCo at a competitive advantage, particularly among consumers who prioritize ethical sourcing and sustainability.

Monster’s Nasty Beast: A Different Target Market

Google. (2025). Monster Nasty Beast Hard Tea [Image]. Retrieved from Google.com

Monster’s Nasty Beast Hard Tea targets a different demographic, appealing to consumers looking for a bold, alcoholic tea option (Monster Energy, 2025). While Nasty Beast’s appeal lies in its energy-boosting qualities, Sprixa will focus on wellness, sophistication, and mindful drinking, positioning it as a premium, alcohol-free alternative. This distinction allows Sprixa to capture the growing segment of consumers interested in non-alcoholic beverages for social occasions, a niche not fully addressed by competitors like Monster.

Other Factors Impacting Sprixa

Government

Laws related to labeling and health claims for food and beverages, especially non-alcoholic products, might require Sprixa to adhere to specific guidelines for advertising its health benefits or alcohol-free status.

Economy

Economic conditions impact how much consumers are willing to spend. In tough times, people might seek more affordable alternatives, while in better times, they may splurge on premium options like Sprixa. Growing interest in health and moderation could also drive demand for functional drinks (Riebe, 2024).

Environment

Environmental factors can play a significant role in shaping consumer preferences. As sustainability becomes a larger concern, consumers are increasingly looking for products that align with their eco-conscious values. Sprixa’s packaging and ingredient sourcing will need to reflect these values, ensuring that it appeals to environmentally-minded consumers (Mintel, 2024).

Technology

Digital marketing and e-commerce platforms can provide Sprixa with a powerful way to engage with consumers, especially the younger, more tech-oriented generations. Using consumer insights to tailor Sprixa’s offerings and marketing messages can also enhance consumer engagement.

Conclusion: A New Era for Non-Alcoholic Beverages

Sprixa is poised to capitalize on the growing demand for non-alcoholic, functional beverages. By aligning with consumer preferences for health-conscious ingredients, sustainability, and social responsibility, PepsiCo can establish itself as a leader in the evolving wellness beverage market. With the right marketing and research-backed product development, Sprixa has the potential to thrive in a competitive landscape, offering a premium, mindful drinking experience that caters to the modern consumer.

What are your thoughts on this exciting new concept? Let me know in the comments below!

References

Dairy News Today. (2025, February 20). Corporate Climate Goals Under Scrutiny: Coca-Cola, Nestlé, and Unilever Scale Back Sustainability Commitments. Dairynews.today. https://dairynews.today/news/corporate-climate-goals-under-scrutiny-coca-cola-nestl-and-unilever-scale-back-sustainability-commit.html

Irigoyen, F. (2025, February). Tea Production in the US. Ibisworld.com. https://my.ibisworld.com/us/en/industry/31192b/performance

Mintel. (2024, June 30). Functional Drinks – US – 2024. Mintel. https://clients-mintel-com.eu1.proxy.openathens.net/report/functional-drinks-us-2024?fromSearch=%3Ffreetext%3Dherbal%2520drinks%26resultPosition%3D12

Monster Energy. (2025). Green Tea – Nasty Beast Hard Tea | Monster Brewing LLC. Beast Unleashed. https://beastunleashed.com/nasty-beast/green-tea/

PepsiCo. (2024a). About PepsiCo. Pepsico; Pepsico. https://www.pepsico.com/who-we-are/about-pepsico

PepsiCo. (2024b). Mission & Vision. PepsiCo. https://www.pepsico.com/who-we-are/mission-and-vision

Riebe, S. (2024, December 31). Alcohol Alternatives – US – 2024. Mintel. https://clients-mintel-com.eu1.proxy.openathens.net/report/alcohol-alternatives-us-2024?fromSearch=%3Ffilters.category%3D29%26last_filter%3Dcategory%26resultPosition%3D2

The Coca-Cola Company. (2025). Discover Simply Pop Prebiotic Sodas – Bubbly New Flavors with No Added Sugar! Coca-Cola.com. https://www.coca-cola.com/us/en/brands/simply/products/pop