When second place means victory.

When it comes to the battle of the brands, arguably none is bigger than Coke and Pepsi.

The Cola Wars, New Coke, the Pepsi Challenge—and that one random guy who saved enough points to try and buy a Harrier jet. Head to head, Coke and Pepsi are as much iconic competitors as they are brands. And yet Dr. Pepper—acquired in 2018, by Keurig Green Mountain—is now tied with Pepsi for second place. Let that sink in.

As recently as 2022, Coke and Pepsi invested more than the GDP of Micronesia—a combined $531 million annually—to market their respective drinks. And while spending 2-4x less, Dr. Pepper has found success on a number of fronts:

1. Understanding behavior change

   • Since 2010, for teenagers alone, soft drink consumption is down by 60%. (First-hand, I helped launch New York City’s 2009 anti-soda campaign. Along with increased choice and cost, the decline in sugary drinks has only gained momentum since.) But Dr. Pepper understood that by marketing as an indulgence, and not a daily staple, potential customers might still choose a soda. So why not Dr. Pepper?
     
     

2. Focusing on product

   • An informed strategy is where to start, but expanding a product line is a different beast entirely. Dr. Pepper leaned into their sweet-treat standard and developed new flavors, like strawberries-and-cream and coconut, to effectively clear the bar they’d set for themselves. Along with owning the ‘23 flavors’ the brand is known for historically.
     
     

3. Connecting with a channel—and an audience

   • With the wind at its back, Dr. Pepper also embraced organic trends, of all places, on TikTok. Ever heard of pickles in a soda? One Google search is enough to confirm everyone else now has. That, and claims of the product being discontinued, have led people to dig in their heels for the good Dr.

Now, one would be naive to assume these factors alone led to the brand’s success. But if there were ever a dark horse in a two-horse race, it’s Dr. Pepper by a mile. And for ‘the oldest major soft drink in America,’ it goes to show that looking at a challenge differently, and opportunistically, can lead to some pretty unexpected results. Especially for Pepsi.