From PepsiCo to Taco Bell, dirty soda is taking over

Core Insights - The "dirty soda" trend, originating from Swig in 2010, is revitalizing the beverage industry, attracting major players like PepsiCo and McDonald's to innovate within the category [1][2][4] Industry Trends - "Dirty soda" combines soda with flavored syrups and cream, gaining popularity through social media and reality TV, leading to its widespread availability in grocery stores and fast-food chains [2][5] - PepsiCo plans to launch two new ready-to-drink dirty soda-inspired beverages, Dirty Dew and Mug Floats Vanilla Howler, at an upcoming trade show, following the success of Pepsi Wild Cherry & Cream [3][4] - The number of U.S. eateries offering carbonated soft drinks with cream or milk has increased from 1.5% to 2.7% over the past decade, indicating a growing acceptance of the dirty soda trend [4] Company Developments - Swig has expanded to over 140 locations across 16 states, reporting an 8.2% increase in same-store sales this year, and has attracted investment from the Larry H. Miller Company [6] - Competitors like TGI Fridays and Taco Bell are also introducing dirty soda items, reflecting the trend's broad appeal and market potential [5][8] Consumer Behavior - Dirty soda appeals to younger consumers, particularly women aged 18-35, who are more inclined to experiment with new beverages [15][17] - The trend is seen as a cost-effective indulgence, providing a fun treat without the high expense of dining out [12] Market Impact - The rise of dirty soda is contributing to a reversal in the long-term decline of soda consumption in the U.S., with projections indicating a slight increase in consumption by 2025 [13] - Beverage companies are leveraging the trend to attract new customers and enhance brand loyalty, with products like Dr Pepper Creamy Coconut achieving significant retail success [18][19]