Coca-Cola is launching a prebiotic soda brand called Simply Pop, taking on upstarts Olipop and Poppi.<\/p>\n
Starting in late February, consumers on the West Coast and in the Southeast will be able to try Coke\u2019s iteration of the trendy drink.<\/p>\n
Soda consumption has broadly fallen in the U.S. over the last two decades, hurt by health concerns and an increase in alternatives on the market, from cold brew to energy drinks to water. But in the last five years, sodas containing prebiotics have taken off, thanks to industry newcomers Olipop and Poppi.<\/p>\n
Olipop recently raised $50 million at a valuation of $1.85 billion, the company announced Wednesday. And Poppi made its second straight Super Bowl appearance in this year\u2019s game, shelling out up to $8 million to reach the game\u2019s record audience.<\/p>\n
Digestive health soft drinks have grown from a $197 million category in the U.S. in 2020 to one of roughly $440 million in 2024, according to Euromonitor International data. Still, it\u2019s a fraction of the overall soda market, which is worth billions of dollars.<\/p>\n
Simply Pop\u2019s first product lineup leans fruity, in a nod to Coke\u2019s Simply juice brand. Flavors include pineapple mango, lime, strawberry, fruit punch and citrus punch.<\/p>\n
\u201cWe went out and really listened to consumers. They love this space, they\u2019re really looking for stuff that tastes good, and that\u2019s something we know how to deliver on at Simply and at Coke,\u201d said Becca Kerr, CEO of Coke\u2019s North American nutrition unit, which includes its Simply and Fairlife brands.<\/p>\n
Simply Pop drinks have no added sugar and contain 25% to 30% real fruit juice, the company said. They also contain vitamin C and zinc, which can boost the immune system.<\/p>\n
They also have six grams of prebiotic fiber \u2014 triple Poppi\u2019s fiber content but less than Olipop\u2019s nine grams.<\/p>\n
Prebiotics have taken off thanks to claims that they can boost \u201cgut health\u201d by helping beneficial bacteria grow in the gut. Their health benefits haven\u2019t been conclusively proven.<\/p>\n
\u201cWe do see that there tends to be an appetite for these type of products with younger consumers, like millennial and Gen Z,\u201d Kerr said. \u201cWe see an interest in these types of products from multicultural consumers.\u201d<\/p>\n
But health claims can prompt pushback. Poppi is in settlement talks over a lawsuit filed in late May that challenges the company\u2019s marketing, arguing that Poppi\u2019s products are not as healthy for the gut as advertised.<\/p>\n
Coke has had the prebiotic soda category on its radar for several years, according to Kerr. Olipop CEO and co-founder Ben Goodwin told CNBC in 2023 that both Coke and PepsiCo had already approached the company about a potential sale. Pepsi is reported to be planning its own prebiotic soda launch in 2025.<\/p>\n
While it\u2019s a newcomer to the segment, Coke has some obvious advantages: more than 100 years dominating the soda category, marketing and distribution muscle, and $47 billion in revenue in 2024 \u2014 compared with the more than $400 million in sales that Olipop netted in 2024.<\/p>\n
Still, Coke has failed before when trying to chase a drink trend. It pulled its Coke Spiced flavor off the shelves in 2024 just months after declaring it a permanent addition. And in 2023, it slashed distribution of its Aha sparkling water brand after the product failed to take off with consumers.<\/p>\n<\/p>\n
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