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Pepsi hopes to make splash in morning soft drink market

By ELLEN WULFHORST, UPI Business Writer

NEW YORK -- Pepsi-Cola Co. is introducing a new version of its trademark soft drink aimed at people who hate to get up in the morning.

Pepsi A.M. and Diet Pepsi A.M., both with more caffeine than regular Pepsi, will be test-marketed beginning next month in the Midwest, Pepsi spokesman Jeff Brown said Thursday.

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Marketing research indicates morning consumption of soft drinks has been rising, and currently about 10 percent of soft drinks are consumed in the morning and mid-morning hours, Brown said.

The Somers, N.Y.-based beverage company, after conducting consumer tests, added extra caffeine to Pepsi A.M. as a flavor enhancer, Brown said.

The result is the same Pepsi taste, only 'smoother,' he said.

'While everyone enjoyed Pepsi, they preferred a smoother taste in the morning,' he said. 'Caffeine brings out the taste of other ingredients, particularly the cola taste.'

'Further testing showed morning soft drink users don't like the heat and bitter taste of coffee,' he added. 'This was developed as a cold, refreshing alternative to coffee.'

The amount of caffeine in Pepsi A.M. equals about one-quarter of the caffeine in coffee and ranks well below the federal Food and Drug Administration limit, he said.

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'It's far below Jolt,' Brown added, referring to the soft drink with twice the caffeine level of regular sodas introduced four years ago by The Jolt Co. Inc. in Rochester, N.Y. Analysts say Jolt has acquired less than 1 percent of the soft drink market share.

Jolt, however, responded to the news of Pepsi A.M. by issuing a statement thanking Pepsi for entering 'the caffeine added market.'

'Cheers. Here's to their about-face,' said Jolt President and Founder C.J. Rapp. 'Jolt is the original that the giants are now entering.'

Both Pepsi and Coca-Cola have conducted more low-key efforts to sell soft drinks to the morning market.

Pepsi has tried morning promotions at the request of its convenience store and restaurant accounts, Brown said. Coca-Cola has aired a 'Coke in the Morning' radio advertising campaign in selected cities.

Pepsi A.M. is 'not a response' to Coca-Cola's campaign, Brown said.

'The potential of morning consumption is no secret to anyone,' he said.

'They're simply trying to push Coke in the mornings without the research' of tailoring the product to consumers' tastes, he said.

Emanuel Goldman, a beverage analyst for PaineWebber Inc., said Pepsi has taken Coke's campaign a step further by adding the extra caffeine.

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'Most soft drinks are not consumed in the morning,' he said. 'But nothing ventured, nothing gained.'

The limited test-marketing is inexpensive and 'not a big deal,' he added.

'It's just one more thing to see if they can get people to drink a little more soft drinks,' he said.

No decision has been made on how long the test markets will be conducted or when the new product may be introduced on a wider basis, Brown said.

Pepsi A.M. cans have the traditional Pepsi logo, along with a gradated yellow background 'suggestive of a sunrise,' he said.

The spokesman did not disclose the exact locations of the test markets in the Midwest.

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