In 2010, a drink chain based in Utah called Swig introduced the concept of “dirty soda,” a playful concoction that has since revolutionized the beverage landscape. Fast forward fifteen years, and this trend has sparked a wave of innovation among industry giants like PepsiCo and fast-food behemoths such as McDonald’s, breathing new life into a beverage category that had long been stagnant.
At its core, a dirty soda blends carbonated soft drinks with flavored syrups, cream, and other delightful ingredients. While Swig proudly claims the original concept and trademark, it is cultural phenomena like TikTok and reality television that have propelled dirty soda into the mainstream, surpassing even Swig’s rapid expansion. Today, these vibrant beverages can be found in grocery stores and fast-food restaurants across the country.
PepsiCo is poised to unveil two new ready-to-drink versions of dirty soda at the upcoming National Association of Convenience Stores trade show in Chicago: the Dirty Dew and the Mug Floats Vanilla Howler. These innovations follow the earlier success of the Pepsi Wild Cherry & Cream flavor, which has already captured consumer attention this year. Mark Kirkham, Chief Marketing Officer at Pepsi Beverages North America, likens the resurgence of dirty soda to the nostalgic root beer floats of the past, suggesting that this trend is not just a fleeting fancy but a reinvention of classic soda experiences.
The trend has also sparked interest beyond traditional beverage companies. Recent data from Datassential indicates that 2.7% of U.S. restaurants now offer carbonated drinks that incorporate cream or milk, a notable increase from just 1.5% a decade ago. Establishments like TGI Fridays have even launched limited-time dirty soda items, some with the option to spike them with alcohol, while McDonald’s experiments with flavored sodas, such as the “Sprite Lunar Splash,” at over 500 locations.
Swig itself has experienced remarkable growth, boasting over 140 locations across 16 states and an impressive 8.2% increase in same-store sales this year. CEO Alex Dunn confidently asserts that Swig is to soda what Starbucks is to coffee, a sentiment that underscores the company’s influence on the beverage market. As Swig leads the charge, competitors like Sodalicious, Fiiz, and Cool Sips are also enjoying the benefits of this burgeoning trend, alongside coffee shops like Dutch Bros., which have added dirty soda to their offerings.
From a business perspective, incorporating dirty soda into menus is not as daunting as it might seem. Erica Holland-Toll, culinary director at The Culinary Edge, points out that restaurants can easily leverage existing soda machines and basic creamers to create custom drinks. This simplicity stands in stark contrast to the complexities of crafting coffee beverages, making dirty soda an attractive option for eateries looking to innovate without significant investment.
Moreover, dirty soda appeals to a broad audience. With lower caffeine levels than coffee, consumers can indulge throughout the day. The bright, Instagram-worthy colors of these drinks further enhance their marketability, particularly among younger consumers who are often drawn to visually appealing options showcased on social media platforms.
Sally Lyons Watt from Circana highlights the affordability of dirty soda as a key selling point, suggesting it offers a fun, budget-friendly treat that can leave consumers feeling good about their indulgence. This affordability is particularly appealing at a time when many people are looking to cut back on spending while still treating themselves.
Interestingly, the rise of dirty soda comes at a time when traditional soda consumption in the U.S. has been on the decline for nearly two decades, driven by health concerns and an expanding array of beverage options. Beverage Marketing reports that soda consumption peaked in 2004 at 15.3 billion gallons but is projected to stabilize around 11.88 billion gallons by 2025, thanks in part to innovative trends like dirty soda and the increasing popularity of prebiotic sodas.
As younger consumers, particularly those in Generation Z, show a greater inclination to experiment with new beverages, this trend has become a recruitment tool for soda brands. Katie Webb from Keurig Dr Pepper notes that dirty soda is enticing new users back to traditional soda brands, creating a halo effect that benefits the entire category. The success of limited-time offerings, such as Dr Pepper Creamy Coconut, illustrates the growing appetite for unique soda experiences.
In sum, the dirty soda phenomenon represents more than just a passing fad; it signifies a cultural shift in how consumers engage with beverages. As industry giants continue to tap into this trend, the potential for creative concoctions is boundless, inviting consumers to experiment and personalize their drink choices in ways that were previously unimaginable. The future of soda appears bright, and with it comes the promise of a more vibrant and engaging beverage culture.
