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PepsiCo and Boston Beer Co. to create alcoholic Mountain Dew

The Boston Beer Company and PepsiCo announced plans to create alcoholic Mountain Dew. 

The collaboration called Hard Mtn Dew is expected to hit shelves in early 2022. Boston Beer will develop and produce the drink while Pepsi creates a new entity to sell, deliver and market the beverage.

Adults of legal drinking age can enjoy the bold flavors of original Mountain Dew, black cherry and watermelon Mountain Dew with an alcoholic twist and zero sugar. The new flavored malt beverage will contain 5% alcohol by volume.

"We know that adult drinkers' tastes are evolving, and they are looking for new and exciting flavorful beverages," said Dave Burwick, Boston Beer's CEO. 

RELATED: Alcohol consumption blamed for more than 700k cancer cases in 2020, study says

Pepsi has been trying to move Mountain Dew out of the confines of the soda category and into new markets — like energy drinks. In March, the company launched a Mountain Dew-based energy drink called "Mtn Dew Rise Energy." The drink is designed "to awaken ambition and help people conquer the day," the company said. 

Los Angeles Lakers star LeBron James agreed to a multi-year partnership as the face of Mtn Dew Rise Energy.

Earlier this year Pepsi's rival, Coca-Cola announced a partnership with Molson Coors Beverage Company to create Topo Chico Hard Seltzers, the company's first alcoholic beverage for U.S. consumers.

HARD MTN DEW alcoholic beverage

The Boston Beer Company and PepsiCo today announced plans to enter a business collaboration to produce HARD MTN DEW alcoholic beverage.

Coca-Cola’s beverage, which hit shelves in March comes in four unique flavors: exotic pineapple, strawberry guava, tangy lemon-lime and tropical mango.

Following Coca-Cola’s entrance into the alcoholic beverage marketplace, Pepsi’s CEO told analysts the company would consider creating an alcoholic drink. Months later, in June, Pepsi filed a trademark application to sell Rockstar-branded beer and hard seltzer.

In late July, Boston Beer stock took a nosedive, seeing a drop in shares over 20%, putting the company on pace for one of the worst percentage declines on record. 

RELATED: White Claw to launch hard seltzer with higher alcohol content

The beer company, the creator of Sam Adams and Truly, overestimated the hard seltzer care and was hit with a steep reality check — with the stock falling more than 32% since January.

Despite alcohol consumption increasing during the coronavirus lockdown, the beer business has been struggling. The Unitest States’ overall beer volume declined 2.8% even with the total alcohol consumption increasing to its highest rate in nearly two decades, according to industry tracker IWSR.

This story was reported from Los Angeles.