PepsiCo Chile will launch lemon-flavoured Pepsi Twist in Chile later this week as part of its new campaign to boost its market share in South America's healthiest economy.

PepsiCo is still suffering from its three-year absence from the country in the late 1980s and early 1990s, and Coca-Cola still dominates the Chilean market with a 48% share of all soft drink sales. PepsiCo sought, however, to improve its position in 2002 through a massive marketing campaign linking Pepsi products to a number of key Chilean institutions, such as football club Colo Colo.

Mariano Valacco, a manager with Pepsi Beverages International (PBI), told the local press that he felt PepsiCo would now benefit from Chilean consumers' desire for novelty, and that Twist will prove a major success for the company.

"There haven't been any real novelties since the low-calorie brands appeared at the end of the 80s, apart from a few changes in packaging," he said. "I think young people are ready to innovate with the lemon flavour."

Valacco that he hoped Twist would prove as successful in Chile as in other Latin American countries, where it has proved popular as a mixer with alcoholic beverages like rum.