three bottles of organic gatorade flavors

Gatorade Goes Organic as Pepsico Joins Natural Product Push

PepsiCo Inc. is introducing a version of Gatorade that’s certified organic by the U.S. Department of Agriculture, testing whether a product created in a lab with artificial flavors and colors can adapt to America’s growing natural-food movement.

September 7, 2016 | Source: Bloomberg | by Jennifer Kaplan

PepsiCo Inc. is introducing a version of Gatorade that’s certified organic by the U.S. Department of Agriculture, testing whether a product created in a lab with artificial flavors and colors can adapt to America’s growing natural-food movement.

After two years of research, the company is now selling strawberry, lemon and mixed berry G Organic in some Kroger Co. supermarkets, said Brett O’Brien, Gatorade’s senior vice president and general manager. It plans to expand the rollout to select grocery, natural and convenience stores over the next few weeks. The suggested retail price for the new drinks is $1.69 for a 16.9-ounce bottle, 50 cents more than for Gatorade Thirst Quencher, the nonorganic equivalent.

Gatorade, which controls 70 percent of the sports-drink market, is facing increasing pressure from new challengers like coconut water as consumers are focused more than ever on ingredients. Organic food industry sales in the U.S. reached $43.3 billion in 2015, up 11 percent from the year before, while broader food sales gained 3 percent, according to the Organic Trade Association.

“We heard pretty loud through the locker rooms, through our work with nutritionists, that there is an interest and a desire among athletes to go organic,” O’Brien said in an interview. “Somewhere around 10 to 12 percent of athletes are saying they’re interested in purchasing organic products.”

To be considered organic, the new Gatorade had to shed artificial ingredients and PepsiCo needed to refine its manufacturing. Every step of the process was approved by the USDA, which aims to ensure organic products are more natural and less harmful to the environment.

But the introduction of G Organic isn’t without risk. PepsiCo recently faced a backlash after switching sweeteners in Diet Pepsi, forcing the company to reintroduce a version with aspartame less than a year after removing it. While the company isn’t changing ingredients in its flagship product as PepsiCo did with Diet Pepsi, a brand extension of Gatorade — which already includes low-calorie G2 — could confuse consumers.