Dive Brief:
- PepsiCo is discontinuing the two lines of Gatorade that it had marketed as "natural" and sold in limited outlets such as Whole Foods.
- Sales of Gatorade Naturals and G2 Naturals were apparently disappointing, and PepsiCo admitted the beverages weren't winning over consumers.
- PepsiCo has faced legal challenges over the use of "natural" claims in the past, and Gatorade recently agreed to remove a chemical from its drinks following a social-media campaign. But the natural Gatorade products were not the subject of any disputes.
Dive Insight:
We're a little surprised by this move. Our sense is that G2 and Gatorade Naturals had some potential, but that PepsiCo didn't market the drinks sufficiently. Plus, there was the strange fact that although the drinks were "natural" by any sensible definition, consumers just have no faith in that term any more. That's particularly true when you're selling a strangely colored beverage under the Gatorade brand. There may very well be a market for natural sports drinks, but it will take someone other than PepsiCo to find out.