Former Taco Bell Chief: McDonald's Is Making a Mistake With Its New Drink

Greg Creed, former CEO of Taco Bell, has called McDonald's new drink lineup generic and lacking a distinct identity. Creed, who more than two decades ago helped launch Taco Bell's cult favorite Baja Blast as the chain's chief marketing officer, shared his view on LinkedIn this week: "Anyone could have come up with these flavors. If I were in McDonald's shoes, I'd have thought about how to make these drinks unmistakably McDonald's — in both design and naming."

Earlier this month, McDonald's announced a partnership with Red Bull and unveiled Dragonberry Energizer, its first foray into the energy drink market. Alongside the launch, the company expanded its beverage lineup and gave its McCafé sub-brand a brighter, younger-skewing redesign. In its February earnings call, McDonald's leadership told analysts that the beverage category represents a global growth opportunity worth more than $100 billion.

Drinks typically carry higher margins than food and encourage customers to make repeat visits throughout the day, making them an increasingly important growth driver for restaurant chains. Starbucks, for instance, has found major success with its caffeinated Refreshers line, which has grown into a $2 billion business and is now its second-best-selling beverage category after espresso.

The Red Bull collaboration drink hits U.S. McDonald's locations on August 17, and the company is also adding a new vanilla flavor to its existing Coca-Cola-based beverages. In his post, Creed compared the move to Taco Bell's iconic, bright-blue Baja Blast, launched in 2004, arguing that Baja Blast's flavor, color and name were directly tied to the brand's Mexican-inspired theme — which is exactly what made it feel authentically "Taco Bell" and drove its success. "Anyone could have come up with these flavors, and frankly, I think Red Bull and Coca-Cola got the better end of this deal," he said of McDonald's new lineup.

In an April press release, McDonald's chief marketing and customer experience officer Alissa Buetikofer said: "Only McDonald's can consistently deliver this experience every day across nearly 14,000 restaurants." McDonald's had not responded to Business Insider's request for comment on Creed's remarks at the time of publication.

The episode raises a question brands keep running into: is announcing a partnership with a big name enough on its own, or does turning a product into a genuinely distinctive brand experience require its own thinking on design, naming and emotional resonance as well?