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Taco Bell Fills Dire Breakfast Soda Need

6 September 2012 in Trading Ideas

Why make do with a tame mimosa when a concoction of orange juice and Mountain Dew is coming your way?

As part of developing its FirstMeal menu for the breakfast crowd, Tex-Mex-inspired fast-food chain Taco Bell has now come up with Mtn Dew A.M. – a mix of orange juice and the ubiquitious citrus-y soft drink.

The chain said the drink will be sold exclusively at Taco Bell, will be mixed in stores, and will sell for between $1.69 and $1.99, according to a recent blog post on the Los Angeles Times’ Money & Co. blog.

Obligatory shots at Mountain Dew aside, Taco Bell’s move into capturing a piece of the fast-food breakfast market is no joke. As Money & Co. notes, morning menus have accounted for 92% of overall traffic growth at fast-food chains in the past five years (citing data from Technomic).

Taco Bell is a division of Yum Brands (YUM), which is answering similar ramps in the breakfast menus of competitors McDonalds (MCD) and Wendy’s (WEN).

But as the Money & Co. blog points out, the move to add even more soda to the American diet is not without its share of obstacles, whether it be the move by New York City Mayor Michael Bloomberg’s attempt to ban the beverages, calls for the surgeon general to publish a report on their health effects, or the move to limit access in schools.