2 In October 2010, PepsiCo launched a new flavor in Japan, Pepsi Mont Blanc. Other Pepsi flavor variations that Japanese consumers were able to sample over the years included Pepsi Iced Cucumber, Pepsi Shiso (an herbal mint), Pepsi Blue Hawaii (pineapple and lemon), and Pepsi Azuki (red azuki beans). The latest variation honored France's best known Alp: Mont Blanc. Priced at $1.65 per bottle, the new line mixed the flavor of chestnuts (marrons) and snow. It was scheduled as a limited release for the upcoming Christmas season. What is driving PepsiCo and other food and bev- erage multinationals to launch new flavor variations in mar- kets (many of these released as limited editions) like Japan? Assess such an innovation strategy? What are the possible benefits and downsides? Martin Winterkorn, 2 In October 2010, PepsiCo launched a new flavor in Japan, Pepsi Mont Blanc. Other Pepsi flavor variations that Japanese consumers were able to sample over the years included Pepsi Iced Cucumber, Pepsi Shiso (an herbal mint), Pepsi Blue Hawaii (pineapple and lemon), and Pepsi Azuki (red azuki beans). The latest variation honored France's best known Alp: Mont Blanc. Priced at $1.65 per bottle, the new line mixed the flavor of chestnuts (marrons) and snow. It was scheduled as a limited release for the upcoming Christmas season. What is driving PepsiCo and other food and bev- erage multinationals to launch new flavor variations in mar- kets (many of these released as limited editions) like Japan? Assess such an innovation strategy? What are the possible benefits and downsides? Martin Winterkorn