PepsiCo Inc. and fast-food company Yum Brands Inc. are looking to a new drink available only at Taco Bell to increase beverage sales.
Yum unit Taco Bell introduced last month Pepsi-made Mountain Dew Baja Blast, a lime-flavored, turquoise-colored soft drink aimed at drive-thru customers who often pass on buying a beverage with their meal.
It is the first time a soft drink has been developed specifically for sale at a fast-food chain, Taco Bell said.
Greg Creed, Taco Bell's chief marketing officer, said with drive-thru transactions making up 70 percent of the chain's sales and beverages garnering high profit margins, sales of Baja Blast could impact overall sales.
Pepsi's collaboration with Taco Bell is part of a broader effort to appeal to consumers seeking variety in beverages as the company grapples with declining sales of its flagship brand.
Pepsi declined to say how much it spent on developing Baja Blast, but Taco Bell's Creed estimated it had spent "a couple of million dollars" on development and between $4 million and $5 million on the drink's launch.
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