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Boston Beer Co. Inc. announced a partnership with PepsiCo Inc. on Tuesday that will bring Hard Mtn Dew, an alcoholic version of the popular soda, to shelves.
The flavored malt beverage will have an alcohol by volume (ABV) of 5%.
Boston Beer
SAM,
will be in charge of developing and producing Hard Mtn Dew while PepsiCo will create the entity to sell, deliver, and merchandise the item. Hard Mtn Dew will be available in early 2022.
Boston Beer brands include Sam Adams beer, Truly hard seltzer and Twisted Tea hard iced tea.
PepsiCo is known for its namesake cola, Aquafina bottled water and Kevita sparkling probiotic and kombucha drinks. PepsiCo recently announced the sale of the Tropicana, Naked and other juice brands in a $3.3 billion deal.
Boston Beer reported earnings in late July that sent shares down 18%, with executives admitting that they had “overestimated the growth of the hard seltzer category.”
However, other companies in the hard seltzer business say the category is a growing one with continued potential.
Also: Molson Coors is dropping 11 ‘economy’ brands including Keystone Ice and High Life Light
PepsiCo
PEP,
and Coca-Cola Co.
KO,
beverage giants that normally specialize in soft drinks, have been dipping into the alcoholic beverage space as hard seltzer and other wine, spirit and cocktail alternatives gain popularity. Coca-Cola Co. has partnered with Molson Coors Beverage Co.
TAP,
for Topo Chico Hard Seltzer. Molson Coors is also the parent company to Vizzy hard seltzer.
Boston Beer stock has dropped 32.4% for the year to date. PepsiCo shares are up 4.7%. And the benchmark S&P 500 index
SPX,
has gained 18.3% for the period.
