How Bubly is challenging Sparkling Ice with a new sweeter variety

Bubly, which used branding savvy and PepsiCo’s might to reel in LaCroix’s runaway growth in the sparkling water category, is now turning its attention to sweeter rivals. The brand’s new variety, called Bubly Burst, incorporates sweet fruit flavors, colorful liquids and 16.9-oz. slim bottles—about the same blueprint as Sparkling Ice, which has gone virtually unchallenged in the sweetened space and is now the best-selling sparkling water brand overall, according to Circana data. While growth in the unsweetened sparkling water market has gone flat since Bubly first entered in 2018, sweeter seltzers have doubled in size since then, growing into a $1.8 billion business, according to Todd Kaplan, Pepsi’s chief marketing officer. Pepsi’s internal analytics team estimates there are 20 million consumers who prefer a sweeter alternative to mainstream sparkling water. The brand was obliged to go after them, Kaplan said. Recent news: Sparkling Ice airs Oscars ad “I’m looking at Bubly, and where the next growth horizon is, and I said, you know what, why don’t we take a crack at the competition and bring Buby into the sweetened sparkling space,” Kaplan said in an interview. “We truly believe at PepsiCo that Bubly can be iconic, and the next billion-dollar brand, if we grow it in the right way.” The Bubly Burst launch will be supported with TV ads, a social and digital campaign including two “top view” buys on TikTok and out-of-home ads. Design studio Office of Development & Design, which goes by ODD, worked on the effort, along with the production company Direct Focus. Bubly cut a personality behind fun sayings on pull tabs, brightly colored cans that smiled, and a series of humorous ads with singer Michael Bublé, including a 2019 Super Bowl spot. Bubly Burst will be bringing the same playful branding into the sweetened space that Bubly brought to unsweetened, said Kaplan, who developed the Bubly brand in a previous role as marketing VP for PepsiCo’s water portfolio. That stems from Pepsi’s contention that consumers will gravitate toward brands, especially in a space with few distinguished competitors, and many private label entrants. “Consumers are looking for brand experiences and brands that connect on a deeper, more emotional level,” Kaplan said. “They are looking at a variety of flavors they can depend on and really meet their needs. And we believe this proposition does a wonderful job of doing that.” Check out the latest Ad Age events and award programs Some calories Bubly Burst comes in six varieties, each sweetened by acesulfame potassium and sucralose. Each contains 1% juice along with antioxidants, and none have more than 10 calories per bottle. “There are a lot of people who aren’t as into the taste of sparkling water, because it’s so pure and with no calories, no sweeteners, none of that, it’s got more of a bitter taste,” Kaplan said. “There are people who are looking for the fun of a soda, but they want more interesting tastes, like peach mango or kiwi watermelon, tropical punch—those kids of tastes—and they’re okay with some calories, and long as it’s low calories.” Although unsweetened sparkling waters have slowed considerably in recent years, Bubly has made a considerable impact on the market in six years since its founding in 2018. According to Circana multioutlet data, Bubly was the fourth-largest brand in the flavored seltzer/sparkling/mineral category, with 9.3% dollar share, for the 52 weeks ended Feb. 25. Sparkling Ice was first at 20.8% share, followed by private label (18.9%) and LaCroix (13.8%). Bubly is No. 1 in terms of brand awareness and brand preference, Kaplan said, citing Kantar’s Brand Mind Share study. Bubly also outlasted rival Coca-Cola, which had big ambitions for its Aha brand, but amid a deep sales decline withdrew the brand from the U.S. market this year. The Circana figures show Bubly dollar sales slipped by 2.6% to $549.4 million in the 52 weeks ended Feb. 25, on a 10.9% price increase and a 12.1% dip in volume. Sparkling Ice sales fell by 1.5% on a 4.9% price increase and a 6.1% decline in volume over the same period, the Chicago-based market research firm said. Is Bubly Burst a Sparkling Ice “ripoff”? Kaplan says no. “People can say what they say, but at the end of the day it’s not that,” Kaplan said. “I would actually argue it’s us building a better version of what we believe consumers in this space are looking for.” Biggest marketing investment The Bubly launch comes as Sparkling Ice is stepping up its marketing investment. In January, the Talking Rain Beverage Co.-owned brand debuted an advertising campaign casting Annie Murphy as the brand’s “chief flavor officer,” who gushes about the brand in two new ads. The platform, called “Anything but Subtle,” was developed by Red Tettemer O'Connell + Partners. Most recently, the brand ran an ad during the Oscars broadcast that cleverly criticized the omission of Greta Gerwig in the Best Director category for her record-breaking “Barbie” movie. The ads are part of what Ken Sylvia, CEO of Talking Rain, described in a press release as “the largest marketing investment we’ve ever made.” Rich DePencier, chief growth officer of Talking Rain, identified the same trends driving growth in the sparkling water market as Kaplan did. “We’ve heard from consumers that they want full-flavor, zero- or low-sugar alternative to soda, great taste and a better-for-you experience,” DePencier said in an email. “That’s exactly what Sparkling Ice has delivered for three decades as the category leader.” As for competition, he said, “we are confident that our consumer will lead the way and that the best flavored sparkling water in the category will win their hearts and minds.” Media buy The media buy for Bubly Burst includes linear TV (NBC, Bravo, MTV and VH1) in April and May and premium online video channels Peacock, Paramount+ and Bravo from April to June, with streaming sponsorship of Bravo’s “Summer House” and the “Mean Girls” movie, according to PepsiCo. Social advertising includes TikTok, Meta, iHeartRadio, Spotify, Reddit and AdvertiseCast. Ads will be boosted throughout the year on Instagram and TikTok. Plans for TikTok include two “TopView” placements—or the first video a user sees when they open the app on a certain day. The first TopView day is April 15. Outdoor ads will appear in Chicago, Los Angeles, New York, Boston and Atlanta.

How Bubly is challenging Sparkling Ice with a new sweeter variety

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