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

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

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