SAM - PepsiCo eyes alcoholic push with Mountain Dew partnership Rockstar patents

Boston Beer (SAM -2.0%) and PepsiCo (PEP +0.2%) stirred up the beverage sector today with a deal to produce Mountain Dew-branded alcoholic beverage in the U.S. The first products are expected to be available in the early part of next year. Morgan Stanley expects a modestly sized launch product given heavy competition in flavored malt beverages, however, sees a first-mover advantage in using a large soft drink brand for the venture. "We see the launch as worth trying, and importantly solidifies a partnership between SAM and PEP that could evolve over time with the blurring of the lines between alcoholic and nonalcoholic beverages," update analysts Filippo Falorni and Dara Mohsenian. The new partnership pushes PepsiCo into the alcoholic beverage space in response to Coca-Cola's (NYSE:KO) Topo Chico Hard Seltzer, launched in collaboration with Molson Coors. Earlier this year, PepsiCo filed a trademark application to open up a path to sell

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PepsiCo eyes alcoholic push with Mountain Dew partnership, Rockstar patents