Call It the Pepsi Blue Generation

When 130 million viewers tune into Super Bowl XXXVII this year, PepsiCo Inc. (PEP ) won't disappoint those who are counting on it to deliver a parade of glitzy and entertaining ads. What viewers won't see, though, is a single commercial devoted to Pepsi's flagship cola. Instead, three of the four slots, purchased for a cool $2 million apiece, will go to newer and narrower brands such as lemon-lime Sierra Mist and lemon-flavored Pepsi Twist.

It's the latest sign of how the soft-drink giant has reformulated its mission from bolstering core brands like Pepsi-Cola and Mountain Dew to peppering the market with niche products and brand extensions. Why the change? Pepsi's market has splintered and big brands no longer have universal appeal. To attract a younger, less cohesive generation, Purchase (N.Y.)-based Pepsi has had to rethink the way it develops and markets its wares. "The era of the mass brand has been over for a long time," says David Burwick, chief marketing officer of Pepsi-Cola North America. "It took our category longer than most to accept that."