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Gen Z hates diet sodas, but loves them with ‘Zero Sugar’ branding

At the Super Bowl next month, Pepsi will feature Pepsi Zero Sugar in a 30-second spot costing more than $8 million and revive taste tests after wins in 34 cities last year, Ram Krishnan says.
Younger consumers are driving the shift by shunning diet-labeled sodas while embracing Zero Sugar branding, a trend fueled by social media stigma and reformulated sweeteners for better taste.
Circana data shows Zero Sugar lines accounted for 52% of the category's sales growth last year, both Pepsi and Coca-Cola sold more than a year earlier, and Keurig Dr Pepper found flavored Zero Sugar sodas outselling colas as it expanded.
Amid internal concern that changes might alienate customers, Keurig Dr Pepper replaced Diet Sunkist, A&W, and Canada Dry with Zero Sugar options, while Elliott Investment Management pushed PepsiCo toward health-focused products.
With soda volumes down 27%, PepsiCo leans into variety and limited-edition flavors to attract Gen Z drinkers who frequently try new beverages.

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Gen Z hates diet sodas, but loves them with ‘Zero Sugar’ branding

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