Indra Nooyi is hoping a little tarragon and agave will help turn around Pepsi’s sagging US soda sales.
The PepsiCo chief executive officer is adding the exotic spices to a new lineup of “craft” sodas — beverages with fancier flavors made with more natural ingredients — to be rolled out through restaurant fountain machines this summer, according to a report.
The new brand, called Stubborn Soda, will include fancier flavors such as black cherry with tarragon, agave vanilla cream, orange hibiscus and pineapple cream.
They will be made with certified fair trade cane sugar instead of high fructose corn syrup, the report said.
Most of Pepsi’s sugar sodas contain high fructose corn syrup, which is viewed by some as unhealthy.
With the move to craft sodas, Nooyi is hoping to capture some of the sales magic engineered by the craft beer business — where for decades craft beer sales have done better than beer sales from the giant brewers.
PepsiCo CEO Indra NooyiGetty ImagesThe fountain machines designed by PepsiCo closely resemble draft beer taps. Stubborn Soda will be available at first only from fountain machines.
PepsiCo may offer it for retail sale later, likely in glass bottles, the report said.
The move by Nooyi and Pepsi into craft sodas — made in smaller batches and with more natural ingredients — was first reported by Beverage Digest.
Pepsi didn’t comment for this story.
Nooyi and other soda makers have scrambled in recent years to reverse a steady decline in US soda sales. Pepsi soda sales in the US have declined for 10 straight years.
A new generation of Americans are turning away from sodas toward more healthy alternatives, including flavored waters and energy drinks.
Smaller rivals to Pepsi and Coke, such as Jones Soda Co. and Reed’s, have successfully pecked away at the giants’ market share.
Pepsi shares closed down Friday 1.2 percent at $93.05.


