PepsiCo to partner with Boston Beer in new soft drinks

PepsiCo Inc. and Boston Beer Co. plans to partner on an alcoholic version of the hard mtn dew alcoholic with the brand Mountain Dew. The coming product is a nod to what the companies see as evolving tastes of drinkers, executives said Tuesday.

Boston Beer, the company behind the Angry Orchard style dry beer and Angry Orchard hard cider, will make the brand-new Mountain Dew rendition, while PepsiCo has set up a new entity to sell the product, the companies said. According to them, it is expected to be available on shelves in early 2022.

The beverage, which will have a variety of flavors, said black cherry and watermelon, won't contain caffeine and sugar, a Boston Beer spokeswoman said. The drink will have an alcohol volume of 5%, the companies said.

The new product comes after Boston Beer last month said it overestimated the growth of its hard-seltzer category in the second quarter, with demand for its Truly product being lower than expected. Meanwhile, PepsiCo and rivals including Coca-Cola Co. have been working for years to move away from sugary drinks and toward low-calorie offerings such as diet soda, flavored seltzer and bottled water.

This year PepsiCo introduced a drink called Mountain Dew Rise as the company is leaning into the category. Last year, it was on Rockstar energy drink company.

The beverage giant said last week it would own global investment firm PAI Partners, parting ways with one of its most famous holdings in a bid to boost growth.