Executive Summary
Sprite has launched the global brand platform 'It's That Fresh' in a strategic move to engage Gen Z consumers and challenge PepsiCo's market position. The initiative centers on reasserting cultural relevance through partnerships in music, skateboarding, and spicy food, unified under a refreshed visual identity. This follows Sprite's recent acquisition of the NBA soft drink sponsorship from PepsiCo's Starry brand, signaling a direct effort to erode competitor market share. The success of this campaign hinges on Sprite's ability to sustain pop culture momentum and dominate the beverage category among younger demographics.
Key Insights
Sprite's 'It's That Fresh' platform aims to engage Gen Z by reinforcing the brand's cultural credentials. Key elements include a sonic identity created with Grammy Award-winning producer Mustard, amplified by UK rapper LeoStayTrill using a branded Ableton Move device. A partnership with Los Angeles-based Crenshaw Skate Club will feature exclusive drops and experiences throughout 2026. The platform continues the global 'Hurts Real Good' campaign around spicy food, launched in 2025, with partnerships involving Takis, Tabasco, and McDonald's for social and creator-led content.
The platform unifies Sprite's activations around music, basketball, and street culture globally. Sprite recently became the official soft drink partner of the NBA, a title it last held over a decade ago, displacing PepsiCo's Starry brand. A refreshed visual identity reintroduces the lemon-lime Lymon symbol with a bold white wordmark and green-and-white color system, appearing across Sprite and Sprite Zero Sugar packaging this month. Product extensions Sprite Chill and Sprite + Tea are expanding globally after strong responses in North America; Sprite Chill became a permanent part of the portfolio in 2025.
'It's That Fresh' launched on March 19 at Sprite FreshFest in London, featuring live performances and exclusive drops, with a global rollout continuing throughout the summer. The platform and visual identity were developed in collaboration with WPP Open X, creative agency Forpeople, Zeno Group, and music-focused shops Tuney and Ear Candy. Sprite's focus on pop culture, including the 2024 relaunch of 'Obey Your Thirst,' has previously helped it gain market share against Pepsi.
Strategic Implications
Industry Impact
Sprite's strategy disrupts beverage marketing by prioritizing authentic cultural integration over traditional advertising. The shift toward experiential activations, creator-led content, and multi-sensory branding—such as the Sprite Sound—sets a new benchmark for consumer engagement. This approach forces the industry to reevaluate loyalty-building methods, moving from product-centric campaigns to ecosystem-based partnerships that align with Gen Z's values of originality and self-expression. The balance of global consistency with regional flexibility through partnerships could serve as a model for other multinational brands.
Investor Perspective
For investors, Sprite's move presents opportunities for revenue growth and market share gains, particularly as it capitalizes on PepsiCo's challenges with Starry. However, reliance on external agencies like WPP Open X introduces execution risks, and the simultaneous global rollout requires precise coordination to avoid dilution. Monitoring metrics such as social media engagement and sales data for Sprite Chill and Sprite + Tea will be crucial to assess effectiveness and scalability.
Competitive Dynamics
Sprite directly challenges PepsiCo by targeting weaknesses in cultural authenticity and Gen Z appeal. The loss of the NBA sponsorship to Sprite highlights PepsiCo's vulnerability, potentially prompting a strategy reassessment for Starry and other products. Competitors face intensified pressure to develop similar culturally-integrated campaigns or risk obsolescence. Smaller brands may struggle to match Sprite's partnership scale, possibly leading to consolidation or niche specialization. This accelerates a trend where market leadership depends on cultural resonance and agile marketing execution.
Policy Considerations
While minimal, Sprite's strategy touches on regulatory aspects of marketing to younger demographics. The use of creator-led content and partnerships with entities like Crenshaw Skate Club may attract scrutiny over advertising ethics and influencer transparency, especially in regions with strict consumer protection laws. Global campaigns involving food partnerships, such as with McDonald's, could intersect with public health debates around sugary drinks. Brands must navigate these landscapes carefully to maintain credibility and avoid backlash.
The Bottom Line
Sprite's 'It's That Fresh' platform signifies a structural shift in the beverage industry, where success now hinges on deep cultural integration rather than product differentiation alone. By leveraging partnerships across music, skateboarding, and food, Sprite positions itself as a lifestyle brand for Gen Z, pressuring PepsiCo and others to adapt. For executives, future growth requires moving beyond traditional marketing to build authentic, experiential ecosystems that engage consumers on their terms, or risk irrelevance in a fragmented market.
Source: Marketing Dive
Intelligence FAQ
'It's That Fresh' unifies global brand expression under a single cultural mindset, integrating sonic identity, skate partnerships, and spicy food campaigns, whereas earlier efforts like 'Obey Your Thirst' focused more on generic thirst-quenching narratives.
Risks include execution complexity from coordinating global agencies, potential brand dilution from numerous extensions, and authenticity backlash if partnerships are perceived as exploitative rather than genuine.
PepsiCo must accelerate cultural re-engagement for Starry or other brands, potentially through similar music or sports partnerships, to recapture Gen Z attention and mitigate further market share erosion.
