Pepsi discontinues Sierra Mist, unveils new soda Starry to compete with Sprite

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Starry Lemon Lime Soda brand
STARRY™, delivers the crisp, refreshing bite consumers have been longing for in the lemon lime flavored soda category Hand-out/PepsiCo (Courtesy PepsiCo press release)

Pepsi discontinues Sierra Mist, unveils new soda Starry to compete with Sprite

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Pepsi launched a new lemon-lime soda called Starry on Wednesday to replace its Sierra Mist beverage and compete against Coca-Cola’s Sprite.

The new beverage is caffeine free and has a zero-sugar variety. Some have already hit store shelves as the soda made its social media debut on Wednesday.

A PepsiCo representative described the soda, claiming it has “higher citrus flavors that are true to fruit and more aromatic which delivers a more balanced, cleaner, crisp finish than Sierra Mist.”

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“At PepsiCo, we are hyper-focused on consumer centric innovation, and we know there’s a strong demand for lemon lime flavored soda with the category continuing to accelerate,” Chief Marketing Officer at PepsiCo Beverages North America Greg Lyons said in a statement, referring to internal studies. “With one product dominating the category, consumers deserve another option…one that hits different. STARRY is bright, optimistic, and rooted in culture and fun.”

This comes after the Federal Trade Commission launched a preliminary investigation into whether PepsiCo violated a law regulating pricing strategies. The company raised prices by an average of 17% compared to the prior year. Coca-Cola and PepsiCo command a combined 72% share of the soda market.

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While its pricing is investigated, PepsiCo is reportedly slashing hundreds of jobs “to simplify the organization so we can operate more efficiently,” the company wrote in a memo to staff. As of December 2021, the company employed 309,000 people globally and roughly 129,000 in the United States.

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