The Coca-Cola Company (KO): What Will “Kickstart” do for PepsiCo, Inc. (PEP)?

In comparison Monster and Red Bull grew 8.1% and 10.8%, respectively. So while it’s no surprise that both companies would devise new strategies for garnering share in this market, what’s surprising is PepsiCo, Inc. (NYSE:PEP)’s performance.

It seems that the only intention behind calling Kickstart a morning beverage and not a regular energy drink is the company’s intent to avoid the regulatory and legal woes that are currently weighing heavy on the energy drinks sector. PepsiCo has cited the lower caffeine content as the reason why it refuses to call Kickstart an energy drink.

Kickstart has 90 mg of caffeine in each 16-ounce can compared to 160 mg in Monster drinks and 142 mg in PepsiCo’s own Amp drinks. But the packaging, the taste, and even the ad campaign are so similar to other energy drinks that it’s very difficult to think of Kickstart as anything else.

In fact it has only 5% juice content – just the bare minimum that is allowed by the FDA for a beverage to be classified as a juice. The marketing of Kickstart as a juice and a morning beverage is already receiving negative press from nutritionists and social lobbyists.

If PepsiCo, Inc. (NYSE:PEP) were aiming to take on established players like red Bull and Monster Beverage Corp (NASDAQ:MNST), it could have either revamped its existing Amp drinks with new flavors or spent of new marketing ideas.

Or, if it had to go for a fresh brand, it should have come out with more than just two flavors in the offering. It’s worth noting that Monster Beverage has as many as 27 flavors while Red Bull has recently launched three new variations – the cranberry-, lime- and blueberry-flavored Red Bull. This takes up Red Bulls flavor count to six.

It looks very unlikely that the Kickstart will launch PepsiCo in the energy-drinks market or even be a true breakfast beverage alternative if that was at all the company’s intent. There are lots of developments at PepsiCo, Inc. (NYSE:PEP) that carry enough possibilities for me to remain optimistic about the company. But this latest maneuver to venture into the energy market through the backdoor by disguising a regular energy drink (albeit with lower caffeine content) as a wholesome morning beverage is a little disappointing.

The article What Will “Kickstart” do for PepsiCo? originally appeared on Fool.com and is written by Eshna De.

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