Dive Brief:
- Coca-Cola is venturing into the prebiotic soda market with the introduction of Simply Pop. The beverage will be available in retail stores in certain regions and online nationwide through Amazon Fresh later this month.
- Simply Pop will come in flavors such as Strawberry, Pineapple Mango, Fruit Punch, Lime, and Citrus Punch, and will contain six grams of fiber for gut health, along with Vitamin C and zinc for immunity support.
- The rising popularity of better-for-you sodas reflects consumers’ shift towards functional beverages that offer more than just hydration as they reduce sugar intake.
Dive Insight:
The healthy soda market has been dominated by emerging brands like Olipop and Poppi in recent years. However, industry giant Coca-Cola is leveraging its resources and global presence to make a mark in this rapidly growing category.
“You would have to be living under a rock not to notice the growth in the prebiotic soda sector,” said Terika Fasakin, senior director of brand marketing for Simply, in an interview with Marketing Dive.
Instead of launching a new brand, Coca-Cola is introducing its prebiotic soda under its established juice brand Simply. This strategic move allows the company to leverage Simply’s fruity identity and consumer recognition, setting Simply Pop apart from its competitors.
Despite the increasing demand for functional sodas, Coca-Cola found that the category has only reached about 20% market penetration, presenting a significant opportunity to attract consumers interested in prebiotic products.
Olipop and Poppi’s success serves as a testament to the potential Coca-Cola sees in the prebiotic soda market. Olipop turned profitable in 2024 with $400 million in sales, while Poppi exceeded $500 million in sales last year, according to Bloomberg.
Coca-Cola’s entry into the prebiotic space follows Olipop’s remarkable growth, as the brand’s valuation surged from $200 million in 2022 to $1.85 billion after a $50 million funding round. Olipop plans to utilize the investment to enhance marketing, introduce new flavors, and expand its presence in segments traditionally dominated by established soda brands like Coca-Cola.
However, Coca-Cola’s foray into the prebiotic market does not guarantee success. While some product launches, such as Simply Spiked alcoholic beverages in partnership with Molson Coors, have resonated with consumers, previous attempts to enter trendy categories like flavored water and energy drinks have yielded mixed results.
In 2021, Coca-Cola discontinued Coca-Cola Energy in North America after a year due to portfolio optimization, and two years ago, the company scaled back distribution of its Aha sparkling water brand as sales declined.
Chris Kelly contributed to this story.