Pepsi Takes on Coke With New Sports Drink

10 September 2007

PURCHASE, New York: PepsiCo's sports brand drink Gatorade is to launch a new low-calorie beverage, ratcheting up the company's rivalry with Coca-Cola beyond their usual core market.

The new G2 beverage, set to debut in December, is intended to help Pepsi extend its reach further into the health drinks and snacks market, and reverse a long-running decline in sales of Gatorade.

As part of its efforts to target health-conscious consumers during what it terms "nonsweat" periods of free time, Pepsi will also launch Propel Invigorating Water and reformulate its SoBe LifeWater and Aquafina Alive brands.

Coke, which currently lags behind Pepsi in sales of non-carbonated beverages, recently acquired Glaceau, the manufacturer of Vitaminwater, and has announced plans to radically increase distribution of the brand across the US.

Data sourced from Wall Street Journal Online. additional content by WARC staff