Pepsico Brings Mountain Dew to China Through Edgy Street-Culture TV Contest

SHANGHAI (AdAgeChina.com) -- As part of Pepsico's $1 billion plan to expand its business and broaden its product portfolio in China, the U.S. food and beverage company is launching Mountain Dew in the mainland. The citrus-flavored brand is the third biggest carbonated soft drink brand by sales in the U.S. Besides Mountain Dew, the company plans to launch Pepsi Max in China this year as well as "a new beverage line that delivers functional benefits, leveraging traditional Chinese medicine," said CEO Indra Nooyi during a call with investors on April 20, 2009. Pepsi is introducing more of its global beverages in China and developing tailor-made products to offset problems elsewhere, particularly in the U.S., where carbonated soft drink sales are declining. Pepsi's global net revenue fell 1% to $8.26 billion during the first quarter of 2009, for example, but in China, Pepsi is still posting high single-digit growth. "Mountain Dew has always been known as a bold and innovative trend leader and China is a young, vibrant country that the world is looking to," said Harry Hui, Shanghai-based chief marketing officer of Pepsico's beverage business in greater China. Pepsi wanted to launch Mountain Dew in China earlier, but it was not possible until this year because of a recent change in Chinese regulations. Previously, the government didn't allow sale of any clear-colored, caffeinated and carbonated beverages, only brown ones such Pepsi and Coke.Contest blends Chinese and western culture To promote Mountain Dew in China, Pepsi is following a strategy that works well for its flagship Pepsi brand: contests that turn the winning Chinese consumers into stars. This month, the company launched a nationwide talent search for a new street-dance that blends China's heritage with western culture in a mix of urban and modern dance moves, sports and martial arts.

Pepsico Brings Mountain Dew to China Through Edgy Street-Culture TV Contest

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