Sierra Mist Lawsuit: The Reason Why PepsiCo Replaced It With Starry

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Sierra Mist Lawsuit The Reason Why PepsiCo Replaced It With Starry

The lemon-lime soda market has seen major shifts, but none more surprising than when PepsiCo abruptly replaced its long-standing brand, Sierra Mist, with Starry. This move left many consumers scratching their heads, wondering why a brand with over two decades of history was suddenly replaced by something entirely new. 

In this post, we’ll dive deep into the lawsuit, trademark infringement issues, and rebranding strategy that led to the discontinuation of Sierra Mist. We’ll also take a closer look at Starry, the new contender PepsiCo hopes will take on industry giants like Sprite and 7Up. Buckle up—this story has layers.

Introduction: The End of an Era for Sierra Mist

Launched in 1999, Sierra Mist quickly became PepsiCo’s answer to Sprite and 7Up. Positioned as a healthier, more refreshing option in the lemon-lime soda market, it enjoyed relative success, though never quite overtaking its rivals. Over the years, Sierra Mist underwent multiple rebrands and formula changes, such as introducing Sierra Mist Natural in 2010 and adding stevia in 2014. Despite these efforts, sales stagnated, leading to the eventual rebrand as Mist Twist in 2016. Still, the brand couldn’t reclaim its footing.

Fast forward to January 2023, and PepsiCo introduced Starry, a new lemon-lime soda, signaling the end of Sierra Mist. But what really caused this switch? Legal action, marketing strategy, or simply changing consumer preferences? Let’s dig into the details.

The Legal Catalyst: Understanding the Sierra Mist Lawsuit

The Legal Catalyst Understanding the Sierra Mist Lawsuit

To fully understand why PepsiCo ditched Sierra Mist, it’s essential to look at the legal issues brewing in the background. In July 2023, a lesser-known TikTok creator, Cierra Mist, made headlines by suing PepsiCo for trademark infringement. Cierra Mist had been building her brand on TikTok and YouTube, amassing followers with her witty takes on pop culture and life. However, she claimed that PepsiCo’s use of the name Sierra Mist interfered with her own branding efforts. While it might seem odd for a massive corporation like PepsiCo to be involved in a legal battle with a social media personality, Cierra Mist’s lawsuit gained significant attention online.

Key Legal Players

The lawsuit involved Cierra Mist as the plaintiff and PepsiCo as the defendant. The case centered around claims of trademark infringement, with Cierra Mist accusing PepsiCo of diluting her personal brand. While trademark laws usually protect established businesses, Cierra Mist’s online presence, particularly her viral YouTube video from July 2023, gave her a legitimate claim.

Timeline and Developments

Financial and Reputational Impact

Although the lawsuit itself may not have caused financial damage to PepsiCo, it certainly played a role in the decision to retire the Sierra Mist brand. PepsiCo faced backlash from both legal experts and the public, with some accusing the company of using its power to silence smaller creators. The online controversy further added fuel to the fire, as fans of Cierra Mist rallied around her, creating a social media storm. PepsiCo may have calculated that starting fresh with Starry was the least damaging path forward.

Sierra Mist’s Struggle in the Market

Beyond the legal battles, Sierra Mist had been fighting a losing battle in the marketplace for years. Competing against well-established brands like Sprite and 7Up, PepsiCo’s lemon-lime soda never managed to capture a substantial share of the market.

Declining Sales and Market Pressure

Despite efforts to differentiate itself as a healthier alternative with natural ingredients like cane sugar and stevia, Sierra Mist couldn’t gain the traction needed. According to a Statista report, Sprite held over 30% of the lemon-lime soda market, while Sierra Mist lagged far behind, often struggling to even reach 10%. In this highly competitive space, even a well-known brand like Sierra Mist wasn’t enough to sway consumers.

BrandMarket Share (%)
Sprite31.4%
7Up18.2%
Sierra Mist8.9%

Consumer Preferences and Health Trends

One reason Sierra Mist failed to resonate with modern consumers was its perceived lack of innovation. As the health-conscious movement grew, consumers began shifting away from sugary sodas. Although PepsiCo attempted to reformulate Sierra Mist with stevia and other natural sweeteners, these changes weren’t enough to attract the increasingly health-conscious broad consumer base. The introduction of stevia in 2014 aimed to reduce the calorie count, but many soda drinkers found the taste too different from the original.

Moreover, younger consumers, especially those engaged with brands on platforms like TikTok, didn’t see Sierra Mist as relevant or exciting. Greg Arellano, PepsiCo’s vice president, admitted that they struggled to engage with this key demographic.

Introducing Starry: PepsiCo’s Strategic Rebrand

Introducing Starry PepsiCo’s Strategic Rebrand

With declining sales and a lawsuit looming over their heads, PepsiCo took drastic measures—launching a completely new product, Starry, in January 2023.

Why “Starry”?

PepsiCo’s decision to replace Sierra Mist with Starry wasn’t just about legal avoidance. The new name and branding were meant to target younger, social media-savvy consumers. Where Sierra Mist had fallen flat in terms of consumer engagement, Starry sought to stand out with its bold flavor profile and vibrant, youthful packaging.

Greg Arellano emphasized that Starry was designed with a digital-first approach, focusing on building a strong social media presence, especially on platforms like TikTok. In fact, early promotions for Starry heavily leaned into social media marketing, using TikTok influencers to generate buzz around the launch.

Marketing Strategy and the Target Audience

PepsiCo shifted gears in a big way with Starry, aiming directly at Gen Z, who tend to be more engaged with trends and innovations in the beverage industry. The bolder citrus flavor and sleek, minimalistic branding are designed to appeal to a younger crowd who see themselves as trendsetters in their social circles.

Starry’s launch was accompanied by digital advertisements and heavy promotions on social media platforms like TikTok, leveraging influencers to endorse the soda. This approach was a direct response to consumer preferences for more engaging, relatable marketing tactics. The brand’s goal? To position Starry as a fun, exciting alternative to competitors like Sprite.

Taste Showdown: Sierra Mist vs. Starry

Of course, the most important test for any soda is the taste test. So, how does Starry stack up against its predecessor, Sierra Mist?

Flavor Profile Comparison

FeatureSierra MistStarry
SweetenerCane sugar, steviaHigh fructose corn syrup
FlavorMild citrusBold, sweeter citrus
Market appealHealth-consciousYouth-focused

Consumer Feedback

Initial reviews of Starry have been largely positive, especially among younger consumers. According to a taste test conducted by Soda Enthusiast Magazine, over 75% of participants preferred Starry to Sierra Mist, citing its bold citrus flavor and more traditional soda sweetness.

Starry just has that punch I’ve been looking for,” said one tester. “It feels fresher and more exciting than Sierra Mist ever did.”

The Business Strategy Behind Starry

The Business Strategy Behind Starry

While the lawsuit and declining sales may have provided the initial push, PepsiCo’s decision to rebrand from Sierra Mist to Starry was ultimately a strategic one.

Why Not Revamp Sierra Mist?

Many have wondered why PepsiCo didn’t simply give Sierra Mist another facelift, as they did in 2016 with Mist Twist. The answer lies in the broader shift in consumer preferences and PepsiCo’s recognition that Sierra Mist’s brand equity was declining. A full rebrand allowed PepsiCo to not only sidestep potential legal pitfalls but also reintroduce their lemon-lime soda with a clean slate.

Competing with Industry Giants: Sprite and 7Up

Starry was created to directly challenge Sprite and 7Up, two dominant players in the lemon-lime soda market. PepsiCo has positioned Starry as the more youthful, socially relevant alternative to these established brands, with a clear focus on digital engagement.

The Future of Lemon-Lime Sodas

What does the future hold for lemon-lime sodas like Starry? In a world increasingly focused on healthier beverage options, PepsiCo faces the challenge of appealing to both traditional soda lovers and more health-conscious consumers.

Trends in the Market

Will Starry Succeed Where Sierra Mist Didn’t?

Industry experts are cautiously optimistic about Starry’s chances. If PepsiCo continues to embrace digital platforms and innovative marketing strategies, Starry may just carve out a niche for itself.

Conclusion

The transition from Sierra Mist to Starry highlights the intersection of legal action, shifting consumer preferences, and bold marketing strategy. PepsiCo made a strategic decision to rebrand and refocus their efforts on younger, trend-conscious consumers, while avoiding the potential pitfalls of a trademark infringement lawsuit. Whether Starry can succeed where Sierra Mist faltered remains to be seen, but its strong start is promising.

FAQs

Why was Sierra Mist discontinued?
PepsiCo discontinued Sierra Mist due to a combination of declining sales and a potential trademark infringement lawsuit filed by TikTok creator Cierra Mist.

What was the Sierra Mist lawsuit about?
The lawsuit involved Cierra Mist, a social media creator, suing PepsiCo for infringing on her brand name, citing trademark infringement.

Why did PepsiCo choose Starry as the replacement for Sierra Mist?
PepsiCo
aimed to create a fresh brand with a bold flavor profile that appealed to younger, social media-savvy consumers, which led to the launch of Starry.

How does Starry compare to other lemon-lime sodas?
Starry
offers a bolder, sweeter citrus flavor, positioning it as a strong competitor to Sprite and 7Up.

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