Finshots Daily Is Pepsi losing its pop?
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May 12, 2025 Pepsi is struggling to stay relevant in the ever-evolving American soda market. Changing consumer preferences and missteps in strategy have left it fizzing out. Meanwhile, competition from Sprite and Dr Pepper is heating up. The discussion highlights Pepsi's bold marketing moves and product innovations aimed at reclaiming market share. There's an urgent call for a revitalized advertising approach to compete effectively against Coca-Cola. Will Pepsi find its spark again?
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Pepsi's Declining US Ranking
- Pepsi fell from the third most popular soda to fourth in the US.
- Dr Pepper and Sprite overtook Pepsi in market share, with Coca-Cola dominating first place.
Soda Market Challenges
- Americans are consuming less soda partly due to rising prices and health consciousness.
- Inflation and tariffs hurt Pepsi more due to its reliance on imported concentrate from Ireland.
Gen Z's Bold Flavor Preference
- Younger consumers prefer bold and new flavors over classic colas.
- Dr Pepper's unique taste and Sprite's flavor innovations attracted these consumers, unlike Pepsi.