Coca-Cola is making its way into the “better for you” soda market in its own unique style. This month, Coca-Cola launched Simply Pop, a soda rich in prebiotics, flavored with fruit juice and vitamins, and claiming to “support gut health” to compete with the growing popularity and sales of small-scale competitors like Poppi and Olipop.
According to CNN’s report, Becca Kerr, CEO of Coca-Cola’s nutrition department, said, “We see prebiotic soda as a truly engaging field for consumers, and we are very concerned about it.”
“We believe this is a field that is very suitable for consumers and also offers great growth potential,” Kerr said.
Kerr stated that the launch of Simply Pop is part of Coca-Cola’s declaration to become a “full-service beverage company,” expanding its usual soda products. It is worth noting that the company has also succeeded in the milk and protein shake sector.
Simply was originally an orange juice brand that later expanded to other fruit juices, non-alcoholic cocktails, canned cocktails, and sodas. The use of the Simply name is based on consumer feedback and love for this 21-year-old brand.
Coca-Cola hopes that the well-known “Simply” brand will help this new soda quickly establish itself and compete with Olipop and Poppi, two prebiotic soda startups that have attracted a loyal following in just a few years.
“After observing, Coca-Cola has clearly identified the potential for development in the gut soda market,” said Duane Stanford, editor and publisher of Beverage Digest. “The Simply brand is a wise move to enter the rapidly growing high-end soda market, which appeals to young consumers and resonates on social media.”
While functional beverages lag behind regular sodas in sales, their growth rate is faster. According to Coca-Cola’s research, this sector is expected to generate $2 billion in sales by 2029.
Olipop may be the biggest beneficiary of the health trend, as the soda brand announced a valuation of $1.85 billion last week. Since its launch in 2018, the brand achieved profitability for the first time, with sales exceeding $400 million last year, doubling from a year ago.
Simply Pop is available in five flavors: lime, pineapple mango, fruit, citrus, and strawberry. They will be sold by the case on Amazon and in national grocery stores for $2.49 per 12-ounce can.
Despite having a larger retail footprint, marketing budget, and distribution capability, the 133-year-old Coca-Cola brand entering this field hasn’t intimidated Olipop’s CEO Ben Goodwin.
Goodwin said, “The world’s largest soda brand seeing the area I invented and the area that the Olipop team brought to life as a good spot for their growth is a huge honor.”