Friday, March 9, 2012

Diet Mtn Dew steps out from shadow of flagship brand

Diet Mtn Dew is all grown up.

The newly minted billion-dollar brand is officially out from under the flagship's shadow, gaining a dedicated tagline, marketing manager and a boost in spending. And in a coup for Diet Mtn Dew, it has assumed sponsorship of Dale Earnhardt Jr.'s Nascar car from Pepsi's Amp brand. Not bad for a product that began life as a line extension.

"We hadn't put a lot of resources behind [Diet Mtn Dew]," said Brett O'Brien, VP-marketing for Mtn Dew and flavored carbonated drinks. "It was something that you found and then you were in this exclusive club, because we didn't talk about it much. As that exclusive club grew bigger and bigger, it became clear we had to put some dedicated resources against it."

Founded in 1988, Diet Mtn Dew has had strong growth even as the carbonated-soft-drink category slowed in recent years. The brand, targeted at Gen X males, cracked the top 10 soda brands in 2005 with a 1.4% share of the total market, according to Beverage Digest. In 2010 it had a 2% share of the $74 billion category.

Full-year figures aren't available yet for 2011, but Beverage Digest reports that, excluding fountain sales, Diet Mtn Dew's volume was up 2%, while the overall category's declined 0.5%.

The brand increased sales by skirting the "diet" stigma carried by some other soft-drink brands that appeal to Gen X males. Diet Mtn Dew skews 60% male and 40% female, while the base brand is split 70%-30%.

"We attribute this to the strength of the Dew brand with male consumers," said a spokeswoman. "The brand halo from base Dew seems to counter the negative "diet' perception."


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