Greg Creed, who launched Baja Blast for Taco Bell, called McDonald's Red Bull energy drink unoriginal. The Dragonberry Energizer hits 14,000 US stores Aug. 17.
A former Taco Bell chief executive said McDonald's new energy drink partnership with Red Bull lacks the distinctiveness that made his former chain's Baja Blast a cult hit.
Greg Creed, who oversaw the 2004 launch of Baja Blast as Taco Bell's chief marketing officer, posted on LinkedIn this week that McDonald's "Dragonberry Energizer" refresher could have been developed by any brand. McDonald's announced the Red Bull tie-up this month, positioning the drink as its first energy beverage.
"If I was McDonald's, I'd be thinking how to make those beverages distinctively McDonald's in design and name," Creed wrote. He contrasted the rollout with Baja Blast, whose blue color, sweet flavor, and Mexico-themed branding made it inseparable from Taco Bell. "Any brand could have come up with these flavors, and I think that Red Bull and Coke have gotten the better of the deal," he said.
McDonald's sees a more than $100 billion global beverage growth opportunity, executives told analysts on a February earnings call. Drinks carry higher margins than most food items and can pull customers into stores across dayparts. The chain has been updating its McCafé sub-brand and recently added vanilla twists to its Coke fountain drinks.
Starbucks has built its own refresher line into a $2 billion business, the second-largest beverage platform behind espresso. McDonald's will serve the Dragonberry Energizer in roughly 14,000 U.S. restaurants starting August 17.
Alyssa Buetikofer, McDonald's chief marketing and customer experience officer, said in an April release that "only McDonald's can bring that kind of experience to life consistently across nearly 14,000 restaurants, every single day."
McDonald's did not respond to a request for comment on Creed's criticism.
Creed, who served as Taco Bell CEO from 2015 to 2019, argued that McDonald's should have developed a proprietary flavor profile. "Any brand could have come up with these flavors," he wrote, adding that Red Bull and Coca-Cola – which supplies McDonald's fountain drinks – got the better end of the arrangement.
Neither McDonald's nor competitors have matched the staying power of Baja Blast, which remains a limited-time draw for Taco Bell two decades after its debut.
AlphaScala rates MCD at 50 of 100, a mixed score in the consumer discretionary sector. SBUX scores 47 of 100, also mixed. Details are on the MCD stock page and SBUX stock page.
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