Pepsi knocked out of America's top three sodas in humiliating shake-up

Daily Mail​

06-05-2025

Pepsi was once Coca Cola's main rival — but now it's slipped so far that it no longer ranks among the top three sodas in America.
Just last year, Pepsi was dethroned by Dr Pepper as the No 2 soda brand in the US.
Now, Sprite has overtaken it too, claiming third place.
According to Beverage Digest, Sprite accounted for 8.03 percent of all canned soda sales in 2024, edging out Pepsi's 7.97 percent.
Dr Pepper holds second place with 8.3 percent — all still far behind Coca-Cola, which dominates with a 19.1 percent share.
Coke is still the undisputed king of the $97 billion US soda industry with more than double the market shares of any of its rivals at 19.18 percent.
It's a remarkable fall. Back in the 1980s, Pepsi nearly toppled Coke during the height of the 'Cola Wars.'
As recently as 20 years ago, Dr Pepper's and Sprite's sales were each less than half of Pepsi's. One in every nine sodas sold was a Pepsi. Dr Pepper was only the sixth most popular soda behind Sprite.
The chart below, based on a report from Beverage Digest, shows how market share for Pepsi, Dr Pepper and Sprite has converged — with Dr Pepper now very slightly ahead.
The change in fortunes comes after 140-year-old Dr Pepper increased its market share with advertising pushes, new flavors and a boost from TikTok trends.
Sprite, created by Coca-Cola in 1961, has also gained ground thanks to heavy investment from its parent company to secure prime shelf space in stores
Meanwhile, consumers have been shifting away from regular Pepsi in favor of low-sugar options and fresh competitors drinks like Poppi and Olipop.
But Pepsi hasn't thrown in the towel. Bosses say the numbers — which cover market share through 2024 — don't fully capture its current momentum this year.
'We're focused on building the Pepsi brand, which includes options like Zero Sugar and flavor innovations like Wild Cherry,' a spokesperson said.
They also point out that the Pepsi brand remains the overall No 2 soda — when taking into account the other versions, which also include Diet.
Pepsi is spending millions to lure customers back. The company has revived the iconic Pepsi Challenge — a marketing campaign that helped close the gap with Coca-Cola in the 1980s.
This time, pop-up taste tests across US cities pit Pepsi Zero Sugar against Coke Zero Sugar in blind trials.
Pepsi has launched a nationwide marketing campaign similar to its 1980s program that almost knocked Coca-Cola off its dominant mantle
So far, Pepsi says the campaign is working. It reports a sales edge over sugar-free rivals and 8 percent year-over-year growth for its Wild Cherry flavor.
But soda makers face growing policy headwinds that could squeeze profits.
Arkansas and Indiana have introduced rules that would ban shoppers from using SNAP benefits to buy soda — a move officials say promotes public health.
Industry groups pushed back, calling the proposals unfair.
Representatives for American Beverage accused state and federal officials of 'choosing to be the food police rather than take truly meaningful steps to lift people off SNAP with good-paying jobs.'
The financial impact could be significant. In 2016, SNAP recipients spent $3.7 billion on soda.
Meanwhile, the companies are not immune from President Donald Trump's sweeping tariffs.
PepsiCo, which has sent some manufacturing capacity to Ireland, has products that are subject to the President's 10 percent import tax.
Meanwhile, the soda companies are sifting through the policy ramifications of 25 percent aluminum tariffs. The metal is a common material used for canning their products.