Vacation is expanding its partnership with Pepsi. On Wednesday, the beauty brand known for its throwback marketing and scented sunscreens launched a collaborative giveaway of archival Pepsi merchandise and co-branded, vintage-inspired Vacation and Pepsi merch.
To participate, consumers can purchase the cherry cola-flavored lip balm Vacation first launched with Pepsi in February from either Target, TikTok Shop or Vacation’s e-commerce site. Select lip balms will contain a number underneath the cap that corresponds to redeemable merch, in a nod to Pepsi giveaways of the 1990s and early 2000s that similarly contained giveaway codes inside the bottle caps. The giveaway will run from July through September 30, with more than 40,000 lip balms with specially marked caps available throughout the period.
Since its launch in 2021, Vacation has been known for its vintage world-building in its packaging design and marketing. Recreating the Pepsi giveaways was part of the brand ethos of making the lip balms feel like an authentic throwback to the ’90s era, said Roy Fleeman, vp of design at Vacation.
“We always look at things and wonder, ‘How do we make this feel special?’ We’re all about hitting all five senses,” said Fleeman. “When working out the [lip balm] packaging design, it was like, ‘What if we recreate that moment of cracking open a Pepsi during summer?’ If we could have figured out how to make that carbonation hiss, we would have done that, too.”
According to the brand, the initial Pepsi lip balm launch generated approximately $1 million in sales within its first three months, becoming Vacation’s top-selling product by units sold at Target and on Vacation’s DTC site.
With the extended Pepsi launch, Vacation joins other beauty brands in increasingly investing in experiential marketing that goes beyond simply getting product into consumers’ hands. In May, The Ordinary launched a short-lived branded bus route in Brooklyn; beauty brands including Korres and Kiehl’s have gotten in on the frozen yogurt craze by creating co-branded bowls with froyo chain Go Greek; and Vacation wrapped up its Erewhon smoothie collab on Tuesday.
“You’re bringing people into this world. So, it’s not just a product; it’s more of a lifestyle now. People can relate to these things more when it’s not just the product in your hand, but it’s the tone of voice, and it’s the social feed that you’re interacting with,” said Fleeman.
The brand’s immersive storytelling has attracted investors and retailers. In March, Vacation received a $70 million investment from private equity firm VMG Partners. In June, the brand entered Sephora, building on its availability at retailers like Ulta Beauty and Target.
The expanded collaboration also speaks to the rising value of “merch” for brands of all categories, from political candidates to controversial software companies. The archival and new Pepsi and Vacation merchandise will include a range of branded products, such as jackets, T-shirts, clocks and water bottles.
“It’s like showing your love for this world through the merch that you wear,” said Fleeman. “For people to want to wear a sunscreen brand’s T-shirt or hat, it’s been amazing to see.”
Fleeman said the brand hopes the giveaway will appeal to nostalgia-minded younger consumers, who may not have been around for the original Pepsi cap giveaways. A 2023 Harris Poll survey found that 60% of Gen Z adults wished to return to a pre-internet era — a time many would have been too young to ever experience themselves.
“Having a tie to these actual pieces just kind of solidifies our world, and being this nostalgia-based brand. It kind of authenticizes it,” he said.
