Trendy soft drinks Poppi and Olipop are sparking interest, with Coca-Cola offering a reaction.
This month, Coca-Cola is making waves in the beverage world with the launch of Simply Pop, a prebiotic-infused soda jam-packed with fruit juice and vitamins claimed to support gut health. The move comes amidst the swelling popularity and sales of smaller competitors in this niche market.
CEO of Coca-Cola's nutrition unit, Becca Kerr, acknowledged the emerging interest in prebiotic sodas, stating, "We think it's a space that is a great consumer fit and offers a lot of growth." The addition of Simply Pop forms part of Coca-Cola's ambition to transform into a "total beverage company," expanding beyond its regular lineup of sodas.
The strategy has proved fruitful for Coca-Cola in other areas, as evidenced by their success with milk and protein shakes. The venerable brand Simply, which began as an orange juice concentrate, has since expanded to include various fruit juices, mocktail mixes, canned cocktails, and now soda.
Hoping to capitalize on the recognizable "Simply" brand, Coca-Cola aims to establish Simply Pop quickly against emerging competitors like Poppi and Olipop, which have cultivated loyal followings in just a few years. According to Beverage Digest editor Duane Stanford, "the Simply brand is a smart way to get into a fast-growing and premium soda segment that is attractive to young consumers and resonates on social media."
Although the functional beverage market pales in comparison to regular sodas, it's experiencing a significant surge in sales – projected to generate $2 billion by 2029, according to Coca-Cola's research. This growth is driven by the role functional beverages now play in consumers' daily lives, offering variety and alternative choices.
Olipop appears to be the chief beneficiary of this wellness trend, announcing a $1.85 billion valuation last week and posting its first-ever profit in 2022, with sales surpassing $400 million and doubling compared to the previous year.
Simply Pop debuts with five flavors – lime, pineapple mango, fruit punch, citrus punch, and strawberry. They will be available by the case on Amazon and sold in 12-ounce cans for $2.49 each at national grocery stores.
Despite the colossal retail footprint, marketing budget, and distribution power of Coca-Cola, Olipop CEO Ben Goodwin remains unphased by the giant's entry into the segment. Instead, Goodwin admires the validation, stating, "It's a massive honor that the largest soda brand in the world has decided that the category I invented, and the Olipop team has brought to life, is a great place for them to seek growth."
Sources:1, 3, and 4: Grand View Research, Inc., undated.2: Allied Market Research, 2023.
Coca-Cola's CEO of the nutrition unit, Becca Kerr, sees a business opportunity in prebiotic sodas, believing it aligns well with consumer preferences and offers potential for growth. The company is leveraging its "Simply" brand to launch Simply Pop, a prebiotic-infused soda, aiming to gain a foothold in the competitive functional beverage market.
