Crystal Pepsi: The story of the 1990s’ clear cola flop

When was Crystal Pepsi launched?
PepsiCo launched Crystal Pepsi in April 1992, initially in test markets such as Dallas, Providence, Salt Lake City, and Colorado. Following positive feedback, a nationwide launch in the U.S. followed in December 1992. In January 1993, the product also arrived in Canada.
Development began as early as 1991, when PepsiCo tested over 1,000 product concepts and 3,000 formulations. The company wanted to capitalize on the “Clear Craze” of the 1990s—a global marketing trend that equated clarity with purity.

What did Crystal Pepsi look like, and how did it taste?
Crystal Pepsi was completely transparent and colorless. Instead of the traditional caramel coloring, PepsiCo used modified cornstarch to achieve the right consistency. The beverage was caffeine-free and contained 20 fewer calories than regular Pepsi—134 instead of 154 calories per 340-ml can.

In terms of taste, Crystal Pepsi differed significantly from classic Pepsi. The drink tasted less tart and had a lighter, less sweet flavor. Despite the altered taste, PepsiCo marketed it as a “completely new product,” not a decolorized version of regular Pepsi.

Why did Crystal Pepsi flop?

Several factors led to the failure of Crystal Pepsi:

• Coca-Cola’s Kamikaze Strategy
  The main competitor, Coca-Cola, launched a targeted sabotage campaign. The company simultaneously launched “Tab Clear” onto the market—not to make a profit, but to harm Crystal Pepsi. Tab Clear was deliberately marketed as a diet drink to create confusion and destroy the market for clear colas.
• Consumer Confusion
  The clear appearance confused customers. Many expected a different taste than what they received. The link between appearance and taste expectations did not hold up.
• Limited health benefits
  Although Crystal Pepsi was advertised as a healthier alternative, the difference was minimal. The drink still contained high-fructose corn syrup and was only slightly lower in calories.
• Quality issues
  Crystal Pepsi’s taste deteriorated when the bottle was exposed to sunlight. This led to negative customer experiences.

After initial success—Crystal Pepsi captured 1% of the $474 million U.S. beverage market—sales plummeted. Production was discontinued at the end of 1993.

The Revival of Crystal Pepsi
In 2013, Crystal Pepsi experienced a renaissance thanks to a viral YouTube clip. A YouTuber named “The L.A. Beast” drank a 20-year-old bottle and threw up. The video sparked a grassroots campaign with over 37,000 signatures calling for a relaunch.
PepsiCo responded and brought Crystal Pepsi back for a limited time in 2016. Further limited editions followed, most recently in 2022 for its 30th anniversary. Despite the wave of nostalgia, Crystal Pepsi remained a niche product without lasting market success.
The story of Crystal Pepsi shows how important it is to carefully consider product innovations and offer genuine consumer benefits. The attempt to create a new market based solely on appearance was not enough to ensure long-term success.