PepsiCo is eyeing a competitive position in the alcoholic ready-to-drink (RTD) market in the Philippines, a sector experiencing a notable shift as consumers seek variety in their beverage choices. Ray Philip Pine, head of marketing for PepsiCo Philippines, spoke of a growing preference among consumers who prefer diverse options over traditional drink selections.
“People are seeking variety, especially when unwinding with friends in the evening. Gone are the days of everyone ordering the same drink,” Pine said in an interview. The shift in consumer preference has opened the door for more RTD alcoholic beverages to open new markets.
PepsiCo’s recent launch of Hard Mountain Dew, which contains 5 percent alcohol, has been met with enthusiasm, exceeding initial PepsiCo expectations. “The natural conversation about the product is very strong and positive among consumers. Without any push from us, conversations erupted online with comments like ‘What sorcery is this?’ and ‘It tastes really good,’” Pine said.
The initial sales pipeline for Hard Mountain Dew has been “encouraging,” according to Pine, although he refrained from discussing specific sales outcomes. The Philippines marks the first international market for the brand, following its U.S. debut in 2022.
Pine said Mountain Dew remains PepsiCo’s biggest brand in the Philippines, appealing to a loyal customer base that is now looking for an alcoholic option. “We wanted to delight our Mountain Dew loyalists with something that fits their nighttime routine,” he explained.
The brand is currently produced at PepsiCo’s facility in Pampanga, positioning the company to capture the growing demand for alcoholic RTD options in the region.
Published reports estimate that a good number of Filipinos, around 40 percent, drink alcohol and that another 15 percent smoke.
The World Health Organization also previously reported that of those who drink alcoholic beverages, 72 percent prefer the spirits variety over beer of only 27 percent, and wine, with only 0.4 percent.
