In this articlePEPFollow your favorite stocksCREATE FREE ACCOUNTUtah-based drink chain Swig coined “dirty soda” back in 2010. Fifteen years later, the trend is fueling innovation everywhere from PepsiCo to McDonald’s, infusing the sluggish beverage category with new life.”Dirty soda” drinks use pop as a base, followed by flavored syrups, cream or other ingredients. While Swig claims credit — and the trademark — for dirty soda, TikTok videos and the reality TV show “The Secret Lives of Mormon Wives” have helped the trend spread far and wide, outpacing even the soda chain’s speedy expansion.Now, consumers can find it nearly everywhere, from grocery store aisles to fast-food chains.In a few weeks, Pepsi plans to unveil two ready-to-drink dirty soda-inspired beverages at the National Association of Convenience Stores trade show in Chicago. The new drinks, the Dirty Dew and the Mug Floats Vanilla Howler, follow on the heels of the Pepsi Wild Cherry & Cream flavor, which hit shelves earlier this year.”I think it’s a great opportunity for people like us, like PepsiCo, and for consumers to experience soda in a new way — and in some ways, an old way,” Pepsi Beverages North America Chief Marketing Officer Mark Kirkham told CNBC, comparing the rise of dirty soda to root beer floats and the soda shops of yore.PepsiCo’s lineup of dirty soda-inspired drinks includes Pepsi Wild Cherry & Cream, Dirty Mountain Dew and Mug Floats Vanilla Howler.Source: PepsiCoDirty soda has also drawn new interest beyond beverage players. According to Datassential, 2.7% of U.S. eateries offer a carbonated soft drink that includes cream or milk, up from 1.5% a decade ago.Newcomers to the trend include TGI Fridays, which launched dirty soda as a limited-time menu item this summer that could be spiked with alcohol. McDonald’s is testing flavored sodas, like a “Sprite Lunar Splash,” at more than 500 locations after winding down its drinks-focused spinoff CosMc’s in June. Yum Brands’ Taco Bell has also been offering limited-time menu items, like a dirty Mountain Dew Baja Blast.Swig sets a trendThese days, Swig has grown to more than 140 locations across 16 states. So far this year, its same-store sales have risen 8.2%, according to the privately held company. The Larry H. Miller Company, an investment firm founded by the former Utah Jazz owner, bought a majority stake in Swig in 2022 for an undisclosed sum.”I think we’re doing for soda what Starbucks did for coffee,” Swig CEO Alex Dunn said.As Swig has grown, so have the number of chains looking to emulate its success. Rival soda shops like Sodalicious, Fiiz and Cool Sips are also benefiting from the trend. Coffee shops, like Dutch Bros., have also added it to their menus. And now fast-food chains are hopping on the bandwagon.”It validates that this is a category, and McDonald’s and Taco Bell wouldn’t be getting into it if it wasn’t something that had broad appeal that they could sell everywhere, in thousands of locations,” Dunn said. “It’s kind of flattering that we created a category that now everybody is copying.”For restaurants, adding dirty soda to the menu is easier than it might sound.”It’s a custom drink offering that, one, allows the brands to leverage something that they already have right there: their soda machine,” said Erica Hol …
