Harper West
In the 1980s, Pepsi introduced Pepsi A.M., a drink with 25% more caffeine than regular Pepsi, designed to be consumed in the morning as an alternative to coffee. The product was test-marketed in some regional areas and mid-sized cities, but PepsiCo ultimately decided not to launch it nationally. The idea of drinking Pepsi for breakfast has been a topic of discussion and marketing strategies, with some concerns about potential negative media publicity and social embarrassment associated with it. Pepsi has also explored other unique flavors, such as maple syrup cola, and limited-time promotions to attract attention and stay competitive in the market.
| Characteristics | Values |
|---|---|
| Product Name | Pepsi A.M. |
| Product Type | Breakfast Soda |
| Caffeine Content | 25% More Than Regular Pepsi |
| Positioning | Alternative to Coffee in the Morning |
| Target Market | Consumers Who Want a Caffeinated Start to Their Day |
| Marketing Strategy | Limited-Time Promotions, Partnerships |
| Brand Image | Innovative, Risk-Taking |
| Consumer Concerns | Social Embarrassment, Health Concerns, Negative Media Publicity |
| Sales Potential | Mixed Test Marketing Results, Potential for Future Growth |
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What You'll Learn
Pepsi A.M. was discontinued in 1990
Pepsi A.M. was a clear cola beverage introduced in the late 1980s, specifically 1989, and discontinued in 1990 due to low sales. It was Pepsi's first attempt at a morning drink, with 25% more caffeine than regular Pepsi, and a 1-calorie diet variation.
Pepsi A.M. was test-marketed in sporadic regions of the United States, including Cedar Falls, Iowa, Waterloo, Iowa, and Fort Wayne, Indiana. Other possible test markets were Pittsburgh, New York, and Phoenix, but these locations are unconfirmed.
The beverage was not well-received, with some taste testers saying they believed it tasted flat. The name also suggested that it was only meant to be consumed in the morning, limiting its appeal to afternoon and evening soda drinkers.
Despite its short duration on the market, Pepsi A.M. remains a memorable product failure for the company, and it was not the last time the company experimented with morning drinks. Other attempts include coffee-based Pepsi Kona, Pepsi Cappuccino, and a Pepsi Café line of two flavors, Original and Vanilla.
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It contained 25-28% more caffeine than regular Pepsi
In the 1980s, Pepsi introduced Pepsi AM, a high-caffeine version of Pepsi-Cola with 25-28% more caffeine than regular Pepsi. The product was designed to be consumed in the morning as a breakfast drink, positioning itself as an alternative to coffee.
The idea behind Pepsi AM was to encourage consumers to start their day with a can of soda, leveraging the fact that both coffee and Pepsi contain caffeine, making them indirect competitors. By adding more caffeine to Pepsi AM, the company aimed to enhance its positioning as a morning drink and differentiate itself from its rival, Coca-Cola.
The decision to launch Pepsi AM was not without internal debate, as highlighted in a meeting of Pepsi managers. Some managers supported the idea, viewing it as an opportunity to showcase Pepsi as an innovative brand and occupy a unique market position. They embraced the risk-taking nature of the company and believed in the long-term potential of the product as the market for morning drinks grew.
However, others expressed concerns about potential negative media publicity and the social embarrassment associated with drinking Pepsi for breakfast. They questioned the test marketing results, which were mixed, and considered the potential return on investment, given the small revenue expected from what would be a relatively minor product line extension.
Ultimately, despite reaching the production and distribution stage, PepsiCo decided not to launch Pepsi AM nationally. According to a 1990 report by the New York Times, PepsiCo ended the test-marketing of the high-caffeine Pepsi AM, indicating that the concept of Pepsi for breakfast did not gain the traction the company had hoped for.
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It was only available in certain areas of the Midwest
In the 1980s, Pepsi introduced Pepsi A.M., a drink containing 25% more caffeine than regular Pepsi, designed to be consumed in the morning instead of coffee. Pepsi A.M. was test-marketed in certain regional areas and mid-sized cities in the Midwest. However, the test marketing results were mixed, and there were concerns about negative media publicity and social embarrassment associated with drinking Pepsi for breakfast. Ultimately, PepsiCo decided against a national launch of the product, and in 1990, they announced the end of the test-marketing of Pepsi A.M.
The decision to only test-market Pepsi A.M. in certain areas of the Midwest was likely due to the regional preferences and demographics of the Midwest. The Midwest has a diverse range of populations, including urban, suburban, and rural areas, which provided a good test market for the product. By limiting the test market to specific regions, PepsiCo could gauge the potential demand and reception of Pepsi A.M. without committing to a full national launch.
Additionally, the Midwest has a strong cultural association with breakfast and morning routines. By targeting this region, PepsiCo could tap into the morning routine habits of Midwest consumers and position Pepsi A.M. as a unique and innovative product. The Midwest is also known for its diverse food culture, including a variety of breakfast options, which could have influenced the decision to introduce a breakfast-focused product in this region.
Moreover, the Midwest has a significant influence on the national food and beverage industry. Many large food companies are based in the Midwest, and the region is often seen as a trendsetter for new food and beverage products. By introducing Pepsi A.M. in the Midwest, PepsiCo could gain valuable insights into consumer preferences and trends, and potentially influence the national market without committing to a full launch.
The test marketing of Pepsi A.M. in the Midwest provided valuable insights and data for PepsiCo. Despite the mixed results, the company could have gained a better understanding of consumer behavior, preferences, and the potential demand for a breakfast soda. The regional approach allowed PepsiCo to make a more informed decision about the viability of Pepsi A.M. as a national product, ultimately leading to their decision to discontinue the test marketing of the product.
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Pepsi A.M. was designed to replace coffee in the morning
Pepsi A.M. was a soda designed to be consumed in the morning and marketed as a replacement for coffee. It was first launched in 1989 and contained more caffeine and less sugar than regular Pepsi. The idea was to offer consumers a way to get their caffeine fix without the bitterness of coffee. Pepsi A.M. was also fortified with vitamins and other nutrients to provide an energy boost to kick-start the day.
The drink was initially test-marketed in select regions of the United States, including Cedar Falls, Iowa, Waterloo, Iowa, and Fort Wayne, Indiana. It was then briefly brought back in 2014 with a new marketing campaign called "Wake Up the World," which aimed to position Pepsi A.M. as a morning beverage alternative to coffee.
The packaging design of Pepsi A.M. featured a bright and colourful look with blue and white as the primary colours, providing a clean and refreshing feel. The iconic Pepsi globe was accompanied by the word "A.M." in bold capital letters, with a slight variation in the font to add uniqueness. The use of graphics and text emphasised the drink's morning focus, with a sunrise graphic and phrases like "Rise and Shine" and "Morning Energy." The product was also packaged in slim" cans, which were taller and narrower than traditional soda cans, giving them a modern look and making them easier to hold and store.
Despite the clever marketing campaigns and promotional efforts, Pepsi A.M. ultimately failed to catch on with consumers. People were accustomed to associating Pepsi with afternoons, pizza, and parties rather than with breakfast. Coffee, on the other hand, was already deeply rooted in morning rituals, and consumers were not willing to replace their coffee with a soda, even if it offered a different, less bitter taste and more caffeine.
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The drink was seen as an unhealthy breakfast option
In the late 1980s, Pepsi introduced Pepsi A.M., a drink designed to be consumed in the morning with breakfast. Pepsi A.M. contained 25-28% more caffeine than regular Pepsi, although it still had 77% less caffeine than coffee. The drink was intended to compete with coffee, which is a popular morning beverage. However, it faced several challenges, including the preference for a warm drink in the morning and the confusion of having a drink specifically branded for the morning.
The concept of drinking Pepsi for breakfast was seen as unusual and potentially embarrassing, which may have impacted sales potential. There were also concerns that promoting Pepsi as a breakfast drink could lead to negative media publicity and be seen as "pushing" the product too hard. Some people argue that consuming too much Pepsi in a day is unhealthy, and the drink was likely to be considered a minor product extension.
Additionally, Pepsi A.M. faced challenges in terms of market testing and distribution. It was only available in certain areas of the Midwest, limiting its reach and traction. The lack of a significant marketing campaign further contributed to its obscurity.
As a result, Pepsi A.M. was discontinued in 1990, less than two years after its introduction. The drink's short lifespan highlights the challenges of introducing a product that significantly deviates from consumer habits and expectations. While Pepsi took a risk by positioning their product in a unique market space, the concept ultimately did not resonate with consumers, leading to its swift discontinuation.
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Frequently asked questions
Pepsi AM was a drink created by Pepsi in the 1980s, designed to be consumed in the morning with breakfast.
Pepsi AM was discontinued in 1990, less than a year after its launch.
Pepsi AM failed to gain traction with consumers and was only available in certain areas of the Midwest. The drink also faced challenges in converting coffee drinkers due to its lower caffeine content.
Yes, Pepsi AM contained 25-28% more caffeine than regular Pepsi but 77% less than coffee.
In 2022, Pepsi partnered with IHOP to release a limited-edition maple syrup cola, which was designed to be consumed with pancakes.
