Coca-Cola and PepsiCo plan competitors to Olipop and Poppi—what it means for soda marketing

Big Soda is coming for gut health. Coca-Cola Co. and PepsiCo are reportedly at work on prebiotic beverages offering similar benefits to a range of upstart competitors led by Poppi, Olipop and Culture Pop. Coca-Cola is coming into the category with Simply Pop, a new soda offering under its Simply banner while PepsiCo is reformulating its functional sparkling water brand Soulboost with gut-friendly ingredients. The forthcoming soda releases were reported first by BevNet. Read about all of the 2024 Marketers of the Year Coke was not immediately available for comment. A Pepsi spokesperson declined to comment. But the rollouts were the talk of the Beverage Digest Future Smarts conference on Monday in New York. There, Ben Goodwin, CEO and co-founder of Olipop, treated the news as something of a long-held open secret and cast it as a benefit for his brand, and validation of its approach. “I’m thrilled,” Goodwin said. “Imagine being a bedroom entrepreneur thinking healthy soda could be a thing, and five years later two of the largest brands on Earth are entering the space.” Coca-Cola’s answer to Olipop 🤭👀‼️this is probably gonna tank Pepsi is also getting into the space according to @BevNET Pepsi tried to go after Recess and their line tanked —I know POPPI is sweating bullets with that burn and no acquisition in sight 😂 pic.twitter.com/9FjJIAPb08— Andrea (@iiiitsandrea) December 13, 2024 While Big Soda has been involved in wellness for some time, the efforts have been primarily in categories such as sports drinks. Pepsi’s Soulboost came out in 2021 boasting a variety of ingredients promoting relaxation and energy benefits. But the advent of prebiotic (Poppi, Olipop) or probiotic (Culture Pop) formulations—and their explosive growth—passed the big companies by until now. “It tells me that at some point all brands will have to figure out how they fit within the massive wellness market,” said Michael McNamara, managing director of McKinney Health. “Even Goliath needs to evolve. Nostalgia and distribution will only carry brands so far.” Recent news: Santa switches sides in Pepsi’s jolly jab at Coke According to BevNet, Coke’s Simply Pop brand will launch in the spring with a prebiotic soda in five flavors and the tagline “flavor that pops.” Pepsi’s Soulboost is being retooled as Soulboost Soda featuring preboitics, the publication reported. Although it was suspected that Coke and/or Pepsi might one day move to acquire Poppi or Olipop, choosing to fight them with their own brands is no surprise, according to John Craven, founder and CEO of BevNet. They may have a challenge on their hands to meet the fervent brand love and loyalty that Poppi and Olipop have engendered. Also read: Behind Olipop’s heartwarming holiday ad “I can’t fault [Coke and Pepsi] for trying, but I think they generally miss what actually makes the challenger brand successful: the brand itself,” Craven said. The move could alter the acquisition landscape in presenting a better opportunity for a company like Keurig Dr Pepper as a potential acquirer, Craven added. In remarks at the Future Smarts event, Goodwin said Olipop is leveraging relationships with retailers such as Walmart and Target and a new distribution deal with Starbucks. Olipop’s plans include international expansion and potential entry into other product categories, he added. Olipop is expected to ring up $500 million in sales this year, Goodwin told Ad Age. The brand is becoming a bigger advertiser with a Christmas ad currently running that recalls heartwarming ads like those from Coca-Cola. Poppi surpassed $100 million in sales in 2023. Although founded as a functional soda with apple cider vinegar, Poppi has reined in health claims in favor of casting itself as a disruptor, with the taste and feel of classic sodas but better formulations. (Poppi was sued earlier this year for allegedly making unsupportable health claims for its products). It showcased its brand in an emotional 60-second Super Bowl commercial this year, a giant leap for a company known best for influencer marketing. Poppi Co-Founder Stephen Ellsworth, who was at the Future Smarts event, declined immediate comment on Coke and Pepsi’s moves into the functional soda space. He referred a question about Poppi’s 2025 Super Bowl ad plans to a spokesperson, who was not immediately available for comment. Read Ad Age’s Best of 2024 stories here

Coca-Cola and PepsiCo plan competitors to Olipop and Poppi—what it means for soda marketing

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