“Mtn Dew” is receiving a makeover, with the term “mountain” returning to cans and bottles after nearly two decades.

The PepsiCo-owned beverage will introduce a new logo and package design on Wednesday, replacing its sharply angular font and truncated title with artwork that symbolizes its rustic roots, as well as restoring its original title to cans and bottles. The new appearance will be introduced to consumers in May of next year.

The revisions come amid falling demand in North America for PepsiCo’s beverages, particularly a 7% drop in volume for Mountain Dew in the first half of 2024, according to information provided to CNN by Beverage Digest, a trade newspaper.

Mountain Dew Is Putting The Mountain Back In Its Logo

“Mountain Dew appears ready to shake off the adrenaline rush that has defined the brand’s marketing for almost two decades, when a key strategy was to market Dew like an energy drink to an energy drink crowd,” Duane Stanford, editor, and publisher of Beverage Digest, told CNN.

Dew’s New Look
The new logo, which taps into nostalgia, brings back “mountain,” which was discarded in 2009 as part of a bigger rebranding of PepsiCo’s soda portfolio, which also included a new look for the now-defunct Sierra Mist brand.

Spelling out the word mountain is a “direct link to the origins of the brand, which is the mountains and the outdoors,” according to Mauro Porcini, senior vice president and chief design officer at PepsiCo, who oversaw the revamp. The logo also includes a reference to its foundation date of 1948, when it was established as a mixer in the Tennessee Smoky Mountains.

Hardcore Dew fans may recognize the new logo as being similar to the logo used in the 1990s, but Porcini told CNN that it has been “modernized and projected to feel the three-dimensionality” of the words, giving it a more current look with softened angles.

Other details include a leaf to represent the “i” and a mountainous background with citrus-inspired golden hues, which Porcini says corresponds to the beverage’s fruity flavor.

“In the previous design, we were not very clear in communicating the refreshment cues,” Porcini told me. “It was more about the energy of the sharp angles exploding on the can.”

Mountain Dew has always been marketed as an energy drink due to its sugar and caffeine content, but the new packaging is intended to evoke a “different kind of energy that’s coming from the outdoors,” according to Porcini.

The soda brand recently reintroduced its popular “Do the Dew” motto and launched the Mountain Dude, a new figure that encourages Generation Z to take their eyes off screens and explore the outdoors.

Mountain Dew’s marketing strategy must undergo significant changes. PepsiCo has “little choice” but to increase sales because the beverage is one of its most valuable brands, according to Stanford. PepsiCo now owns Rockstar Energy and has made a $500 million investment in Celsius, a popular energy drink brand, so “the need for Dew to compete as an energy brand isn’t as critical.”

Soda slump.
Rolling out a new design comes at a difficult time for soda manufacturers. Drinkers’ choices are migrating away from sugary sodas and toward sparkling waters, hydration beverages, and “better-for-you” options.

Mountain Dew Is Putting The Mountain Back In Its Logo

PepsiCo lowered its full-year revenue projection on Tuesday, citing decreased volume in its North American beverage sector. “The cumulative impacts of inflationary pressures and higher borrowing costs over the last few years have continued to impact consumer budgets and spending patterns,” PepsiCo CEO Ramon Laguarta said in a statement.

Furthermore, smaller rivals such as Poppi and Olipop are gaining popularity and distribution, with the latter recently producing a Mountain Dew-like taste dubbed “Ridge Rush” that features mountains on its cans.

Mountain Dew’s new style is more about the “evolution and nurturing that we wanted to give to this beloved franchise,” according to JP Bittencourt, vice president of marketing at the brand. “This design has been in the works for some time, so this is not a response to anybody.”

A rebranding could also attract drinkers who may have forgotten about Mountain Dew. Bittencourt told CNN that the company had “huge lifts with our most ardent fans and, equally important, with those who have not tried us in some time.”

SOURCE | CNN

Americans are revolting against McDonald’s and other fast-food establishments. This is harming French fry suppliers like Lamb Weston.

Lamb Weston, North America’s largest manufacturer of french fries and a significant supplier to fast-food chains, restaurants, and grocery stores, is closing a production facility in Washington state. Last week, the company stated that it would lay off almost 400 employees, or 4% of its workforce, and temporarily shut down manufacturing lines in response to falling customer demand.

Lamb Weston (LW) shares have plummeted 35% this year.

America’s French Fry King Sounds An Alarm

The potato giant is oversupplied at a time when demand is low. In recent years, restaurant prices have risen faster than grocery store prices, prompting shoppers to avoid fast-food establishments.

This move has had an impact on Lamb Weston because individuals are less inclined to prepare French fries at home. According to Lamb Weston, fast-food restaurants account for around 80% of all french fries consumed in the United States.

Fast-food restaurants, such as McDonald’s, are offering bargain menus to entice customers back. McDonald’s has introduced a $5 meal that contains a McDouble cheeseburger or a McChicken sandwich, small french fries, four chicken nuggets, and a small soft drink. However, these promotions are not benefiting Lamb Weston because customers are purchasing fewer portions of fries.

“Many of these promotional meal deals have consumers trading down from a medium fry to a small fry,” Lamb Weston CEO Thomas Werner stated during an earnings call last week.

Lamb Weston did not immediately reply to CNN’s request for comment.

McDonald’s, Lamb Weston’s largest customer, accounts for 13% of revenue. As McDonald’s goes, so does Lamb Weston.

America’s French Fry King Sounds An Alarm

And McDonald’s is struggling. Sales at US restaurants open at least a year declined 0.7% last quarter compared to the same period a year ago, dragged down by fewer consumers visiting the brand.

Lamb Weston is also heavily exposed to other fast-food companies, according to analyst R.J. Hottovy of analytics firm Placer.ai, in a research note to clients last week.

Customer traffic to fast-food restaurants fell 2% last quarter and 3% the prior quarter compared to the same period last year, according to Lamb Weston.

SOURCE | CNN

YouTube’s top stars have launched their competitor to Lunchables.

MrBeast, Logan Paul, and KSI are collaborating on a “groundbreaking new better-for-you lunch option” called Lunchly, combining all their goods into a single meal geared at their younger fans.

The all-in-one meal includes a bottle of Prime Hydration, a sports drink alternative founded by Paul and KSI that has grown in popularity; a Feastables milk chocolate bar created by MrBeast, a popular YouTube star with over 300 million subscribers; and one of three processed food options, including pizza, nachos, or turkey aand cheese with crackers.

Logan Paul And MrBeast Have A Lunchables Competitor That They Say Is Healthy

“Our ultimate goal has always been to offer not only high-quality products, but also healthier alternatives,” Lunchly cofounder Logan Paul stated in a press release. He also stated that the school lunch industry has been “dominated by Lunchables” since he was a child, and that it is “time to provide a better option for those looking for a convenient, healthier choice.”

Lunchly promises to be “healthier” since Prime contains more electrolytes than a Capri Sun in Lunchables, and Mr. Beast’s chocolate bar contains less sugar than a Kit Kat or Crunch bar.

Lunchly’s launch comes after Lunchable, owned by Kraft Heinz, announced a huge initiative last year to participate in school lunch programs. However, the company had to reformulate the components first to guarantee that the items met regulatory rules, which included incorporating fresh fruit into their meals.

Consumer Reports reported in 2024 that it recently studied the nutritional profiles of two Lunchables kits supplied in schools and discovered that they contain significantly more sodium than the Lunchables kits available in stores.

Logan Paul And MrBeast Have A Lunchables Competitor That They Say Is Healthy

Of course, KSI, Paul, and MrBeast know how to create brands, thanks partly to their devoted following. Despite government worries about the caffeine content of some of its drinks, Prime sales have risen, threatening industry leaders such as Gatorade and BodyArmor.

“Prime brings a youthful buying cohort that hasn’t had a lot pitched their way beyond traditional kids’ drinks,” Jeffrey Klineman, editor-in-chief of BevNet, previously told CNN. “Paul is significantly more intriguing to a 13-year-old than a juice box.”

SOURCE | CNN