PepsiCo taps into protein boom with 3 beverage innovations

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Dive Brief:

• PepsiCo is enhancing its protein offerings with refreshed options across three beverage brands as nutritional drinks continue to power sales across the industry.
• The new lines, which will come to market early next year, include updates for the Propel, Muscle Milk and Starbucks Coffee brands.
• The food and beverage giant is aiming to stand out in the crowded market by highlighting how the beverages can boost health outcomes rather than solely touting the amount of protein grams per drink.

Dive Insight:

During PepsiCo’s earnings call last week, executives pointed to protein as a growth opportunity for the food and beverage giant. With the new product launches, PepsiCo wants to create protein-enhanced beverages that customers can consume at multiple times throughout the day.

“We’re focused on delivering protein in ways that work with the body, not just focused on adding grams,” Ram Krishnan, CEO of PepsiCo Beverages, said in a statement.

Propel Clear Protein is a flavored powder mix that includes added electrolytes and fiber, and the launch is meant to bring the brand deeper into the functional hydration space. The product is targeted at GLP-1 medication users, PepsiCo CEO Ramon Laguarta said on the call, who noted fiber might be the next big trend in functional drinks. 

As consumers look for more health benefits out of their beverages, companies like PepsiCo are seizing the opportunity to innovate with new ingredients. 

“That will have a multiyear innovation opportunity for us as we see consumers looking for more functional solutions in drinks that are not even available right now in the market,” he said.

PepsiCo also plans to reformulate Muscle Milk to make it smoother and shake-like. Laguarta said the company’s goal is to give consumers a drinkable alternative to meals and snacks. 

PepsiCo is positioning Muscle Milk as the only ready-to-drink protein beverage without artificial sweeteners and added colors. To support the change, the CPG giant is modernizing its packaging.

The third beverage PepsiCo is targeting is coffee, through its North America coffee partnership with Starbucks Coffee. The protein-enhanced drink will include added protein, fiber and vitamins and minerals.

The protein innovations are part of PepsiCo’s broader strategy to add better-for-you options to its portfolio. Earlier this year, the CPG giant released versions of some of its popular products without artificial colors and flavors.