Taco Bell expands cult-favorite Baja Blast as it doubles down on drinks

CNN

5 days ago

Taco Bell's Mountain Dew Baja Blast is getting its first permanent new flavor in two decades, the chain's latest push into the fast-growing beverage sector.
The fast-food chain is rolling out Thursday 'Baja Midnight,' a new, purple-hued version of the cult-favorite soda, which mixes passion fruit flavors with the lime from Baja Blast.
The first-ever Baja Blast expansion comes as Taco Bell aims to substantially grow its beverage sales to $5 billion within the next five years. The chain's strategy involves launching new drinks aimed at Gen Z drinkers and rapidly growing a beverage-themed café. Beverages, as a single category, is growing faster than the entire fast food industry.
Taco Bell said in a press release that this 'evolution builds on the Baja Blast legacy while introducing modern flavors that reflect the vibrant tastes of today.' The Baja Midnight beverage has the same color as its logo, the chain notes.
Baja Blast got its start at Taco Bell in 2004 in what was a first-of-its-kind deal between a fast-food chain and a beverage maker, Mountain Dew. The flavor, available only at Taco Bell locations, complemented the chain's Mexican-inspired food, giving it an advantage over its rivals. Baja Blast became so popular that parent company PepsiCo started selling it seasonally at stores about a decade later. It was even turned into a boozy beverage in 2022.
'Taco Bell's Baja Blast lineup has often been a key differentiator for the brand, and leaning into product exclusives can help drive visitation to quick service restaurant chains, especially as the industry faces steeper competition and consumers who are on the hunt for more value from fast food offerings,' Elizabeth Lafontaine, director of research at location analytics firm Placer.ai, told CNN.
Baja Midnight has a suggested price of $2.49 for a small and $2.99 for a large. A limited-time frozen flavor is also rolling out Thursday for $3.79 for a regular size and $3.99 for a large.
Taco Bell is going all in on drinks as part of its overall strategy to supercharge growth that also involves investing in chicken options, new sides and international expansion.
The chain earlier this summer launched a lineup of 'Refrescas,' a selection of drinks aimed at attracting consumers searching for a beverage between meals.
Taco Bell also aims to open 30 locations of its beverage-forward Live Más Café across the United States by the end of the year. Since the first spot opened late last year, it's been off to a 'phenomenal start,' according to David Gibbs, CEO of Taco Bell's parent company Yum! Brands.
Gibbs said in the company's first quarter earnings call in April that the first Live Más Café in San Diego, which replaced an existing Taco Bell, had a 40% boost in sales with customers buying more than 300 drinks daily, prompting the 'rapid expansion.'
'Beverages have become a new category for quick service restaurant chains to compete on as they look to increase their market share and build loyalty with guests, especially against beverage-focused concepts,' said Lafontaine, referencing chains like Dutch Bros, Swig Drinks and Scooter's Coffee.
Yum!, which also owns KFC and Pizza Hut, released its second quarter earnings last week with Taco Bell proving to be the bright spot for the company. The chain reported same-store sales grew 4%, propelled by the rollout of crispy chicken nuggets.