PepsiCo Fights Back as Classic Pepsi Falls Behind Dr Pepper in US Market:

Pepsi, once a dominant soda brand, has now slipped to third place in the US market—behind Coca-Cola and now Dr Pepper, according to a report by The Wall Street Journal. With soda sales declining across the board, PepsiCo is launching a major comeback effort to reclaim its standing.

Decade-Long Decline in Soda Sales

Since 2010, sales volume for Pepsi’s soft drinks—including Diet Pepsi and Pepsi Zero Sugar—has dropped by 32%, compared to a 14% decline for Coca-Cola, per Beverage Digest. Even Gatorade, once a market leader in sports drinks, has lost its edge.

Consumers are moving away from sugary sodas, turning instead to energy drinks, kombucha, and healthier alternatives—pressured further by public health campaigns labelling sugary beverages as harmful.

New Leadership, New Focus

In February 2024, Ram Krishnan took over as PepsiCo's North American beverage head and immediately began reshaping strategy. His approach includes:

Early-morning store visits

Hands-on product audits

Increased marketing spend

Focus on shelf visibility and placement

Armed with scorecards and an aggressive schedule, Krishnan is aiming to bring back Pepsi’s lost focus.

Marketing Resurgence: The Return of the Cola Wars

Pepsi is reviving its iconic Pepsi Challenge, now putting Pepsi Zero Sugar head-to-head with Coca-Cola Zero Sugar. Campaigns are pushing the claim that Pepsi tastes better with food, under the new slogan: “Every burger deserves Pepsi.”

Digital-first strategies, undercover taste swaps at fast-food chains, and a bold ad presence across social media are part of the push to re-engage consumers.

Signs of a Comeback

Krishnan reports a 5.8% increase in classic Pepsi sales in 2025, reversing the 1.5% decline from 2024. Pepsi Zero Sugar and Wild Cherry Pepsi are also seeing double-digit growth.

Yet, many longtime Pepsi distributors say it’s been the brand’s most difficult period. Some have even started distributing rival energy drinks like C4 Energy.

What Went Wrong?

Industry experts argue that under former CEO Indra Nooyi, PepsiCo diverted too much focus from beverages to healthy snacks and acquisitions like Sabra hummus, Naked Juice, and Poppi.

This shift led to underinvestment in flagship brands like Mountain Dew and Gatorade, giving rivals a chance to gain ground.

Now, PepsiCo is working to better integrate its snack and drink units, aiming to cut inefficiencies—like sending separate delivery trucks for Lay’s and Pepsi to the same store.

The Road Ahead

With a renewed focus on flavor, food pairings, and operational integration, PepsiCo hopes to revive its brand identity and fight back in the cola wars.

“Some of the pivots we are making are working,” Krishnan insists. Pepsi is far from backing down—and its next moves could determine whether it reclaims lost ground.