As PepsiCo gears up to make a significant entrance into the alcohol market through its collaboration with Boston Beer, the beverage and snack powerhouse is already creating a buzz with a new alcoholic product featuring its Lay’s potato chips. The company’s Frito-Lay division is joining forces with Oregon-based Eastside Distilling to launch Lay’s Potato Vodka, a spirit crafted from the same potatoes used in its beloved chips. Priced at $40 a bottle, this offering quickly gained popularity, selling out within hours. “At Lay’s, we’re always on the lookout for fresh and innovative ways to bring joy and excitement to our fans,” stated Melissa Miranda, senior director of marketing at Frito-Lay North America, in an interview with Forbes. “And you never know what surprises we might have in store for the future!” PepsiCo is also venturing into the alcoholic beverage space this year with a hard drink under the Mtn Dew brand, part of a partnership announced last summer with Boston Beer, the maker of Sam Adams.
The introduction of potato-infused vodka isn’t the first distinctive partnership in the alcohol sector. In November, Arby’s unveiled two limited-edition vodka flavors inspired by its curly and crinkle-cut fries, each priced at $60. Last year, Kraft Heinz’s Grey Poupon released a limited-edition white wine, La Moutarde Vin, incorporating mustard seeds from the well-known condiment. Additionally, Kellogg collaborated with House Wine to create a unique box featuring half Kellogg’s Cheez-It crackers and half a selection of House Wine. Furthermore, Mondelēz International partnered with Barefoot Wine to develop a red blend designed to complement the chocolate, cookies, and cream flavors of its Oreo Thins. As notable brands like Lay’s, Grey Poupon, Cheez-It, and Oreo seek to broaden their appeal, the collaboration on alcoholic beverages may capture the attention of consumers who may not regularly engage with their products or haven’t done so in a while. This strategy also allows PepsiCo, Kraft Heinz, Kellogg, and Mondelēz to leverage the expertise of established alcohol companies familiar with the industry.
Various segments of the alcohol market have experienced growth during the ongoing pandemic. In 2020, the total beverage alcohol volume in the U.S. increased by 2%, marking the largest rise in alcohol consumption in the country since 2002, according to IWSR data. This surge was partly driven by flavor innovation, a trend that Lay’s Potato Vodka cleverly capitalizes on.
When Americans are surveyed about their favorite cocktails, one drink consistently tops the list: the margarita. This classic Mexican restaurant staple has been the most popular mixed drink for years, and its flavors are now making their way into another trending alcohol category. Boston Beer has introduced margarita-inspired Truly hard seltzers, available in a variety of flavors like Classic Lime, Strawberry Hibiscus, Watermelon Cucumber, and Mango Chili. Although they contain no distilled spirits, these seltzers are sweetened with agave nectar and include lime juice concentrate and sea salt. This new product line follows a challenging 2021 for the hard seltzer brand and the category as a whole, where slower-than-expected sales led Boston Beer CEO Dave Burwick to acknowledge that the company had overestimated the demand for Truly.
By incorporating margarita flavors, Truly aims to appeal to a broader demographic as the initial hard seltzer boom stabilizes. This tactic has proven successful for AB InBev’s Bud Light, which launched its margarita-inspired Ritas line of beverages in 2012. Truly isn’t alone in exploring flavors inspired by tequila beverages without the actual spirit; Molson Coors’ Topo Chico hard seltzer, created in partnership with Coca-Cola and set for a nationwide launch in 2022, recently announced a new flavor based on the popular Texas Ranch Water cocktail.
In a separate but exciting development, Frito-Lay has introduced a new flavor of Doritos that combines heat with coolness: Flamin’ Hot Cool Ranch Doritos. This innovative chip delivers a bold taste experience, merging the classic Cool Ranch flavor, reminiscent of iconic buttermilk dressing, with a spicy twist. Cool Ranch Doritos have been a beloved snack since their debut in 1986, and almost half of the respondents in a recent Mashed poll ranked them as the best flavor of the chip brand. The flavor has also solidified its place in pop culture, with track and field athlete Christina Clemons gaining attention for wearing earrings resembling bags of Cool Ranch Doritos while qualifying for the Tokyo Olympics.
Given the immense popularity of Cool Ranch Doritos, it’s surprising that they hadn’t yet received the Flamin’ Hot treatment. The Flamin’ Hot line originated in 1992 with Flamin’ Hot Cheetos and has since expanded to various PepsiCo products, including Doritos, Ruffles, Lay’s, Funyuns, Smartfood popcorn, and Mtn Dew. Adding spice to the zesty flavor of Cool Ranch Doritos seems to be a winning move among consumers, with early reviews indicating positive reception. These chips are expected to hit store shelves nationwide this month, marking a fusion of both heat and cool for 2022.
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