26 Feb 2025 US: Coca-Cola enters trendy prebiotic soda market
The drink, which contains fibre for gut health and Vitamin C and zinc for immunity support, pits the beverage giant against fast-growing upstarts Olipop and Poppi.…
Coca-Cola is entering the prebiotic soda market for the first time with the introduction of Simply Pop.
This new beverage will be available in select retail stores and nationwide online via Amazon Fresh later this month.
Simply Pop will come in flavours such as Strawberry, Pineapple Mango, Fruit Punch, Lime, and Citrus Punch. Each serving contains six grams of fibre to support gut health, along with Vitamin C and zinc to help boost immunity.
The demand for healthier soda alternatives has been growing as consumers reduce their sugar intake and seek functional drinks that offer more than just hydration.
“We found that consumers, especially wellness-focused Gen Z-ers and Millennials, were really interested in juice and prebiotic sodas,” Becca Kerr, CEO of Nutrition for The Coca‑Cola Company, said.
“And since many brands in this category are new, they were looking to align with names they know and trust for both quality and taste. This was particularly true for those curious about prebiotic sodas but who hadn’t yet taken the leap.
“We knew that in order to bring new drinkers into the category, we had to strike that perfect balance of innovation and trust.”
FoodDive.com insights
The healthy soda market has been dominated during the last few years by upstarts Olipop and Poppi. But beverage titan Coca-Cola is aiming to use its deep pockets and global reach to muscle into the fast-growing category.
“You would have to be under a rock … to not have seen the growth that is happening in the prebiotic soda space,” Terika Fasakin, senior director of brand marketing for Simply, told Marketing Dive.
Rather than launch a new brand, Coca-Cola is debuting its prebiotic soda under its 24-year-old juice brand Simply. The move enables the Atlanta-based beverage company to tap into Simply’s fruit-forward profile and brand recognition among consumers, attributes that can help the nascent soda stand out from its more established competitors.
Despite the growth of functional sodas, Coca-Cola found the category only has about 20% market penetration, providing a ripe opportunity to attract consumers curious about prebiotic products.
A look into Olipop and Poppi provides a glimpse into the promise Coca-Cola sees in prebiotic soda.
Olipop turned profitable in 2024, with sales doubling to $400-million year-over-year, according to the company. Poppi has done even better, with sales topping $500-million last year, Bloomberg reported.
Coca-Cola’s launch comes a week after Olipop, valued at just $200-million in 2022, announced it was worth $1.85-billion after raising $50-million in its latest funding round.
The recent investment, Olipop said, will be used to expand marketing, add flavours and increase availability in spaces traditionally dominated by legacy sodas, including products made by Coca-Cola.
Still, just because Coca-Cola is entering the prebiotic space doesn’t mean it’s a guaranteed success. While many of its product launches — such as its Simply Spiked alcoholic offerings as part of its partnership with Molson Coors — have resonated with shoppers, attempts to enter trendy categories such as flavoured water and energy drinks have yielded mixed results in recent years.
In 2021, Coca-Cola discontinued sales of Coca-Cola Energy in North America after just over a year on the market as it streamlined its portfolio to focus on its better-performing brands.
And two years ago, Coca-Cola announced it was sharply cutting the distribution of its short-lived Aha sparkling water as sales declined.
What are prebiotics?
To understand prebiotics, you need to meet probiotics, the living microorganisms, in foods like yogurt, cheese, kefir, and fermented vegetables. Regularly consuming probiotics can help keep the intestinal environment functioning properly, according to Harvard Health.
Prebiotics, which our bodies cannot break down, serve as the food for the probiotics and other “good gut bacteria” to continue their work.
Foods that are rich in fibre (think fruit, vegetables, and whole grains), as well as potatoes, bananas, and artichokes, are known to be desirable sustenance for probiotics in our systems.
Prebiotic sodas typically use the plant-based fiber inulin, often from agave or chicory root, according to Julia Zumpano, a registered dietitian with the Cleveland Clinic Center for Human Nutrition. Also found in other fruits, vegetables, and grains, inulin dissolves in water, meaning consumers won’t even notice it’s there.
Why have prebiotic sodas become so popular?
Interest in gut health has exploded as research into the gut microbiome uncovers ever more evidence of its role in health and disease.
Data compiled by consulting firm AlixPartners and released last year showed that, in 2023, the sale of prebiotic and probiotic drinks in particular more than tripled in the US.
Are prebiotic drinks worth it?
This depends. They may serve as a special treat and a “guilt-free indulgence,” but they likely should not be depended on regularly for gut health, advises Zumpano.
While inulin typically used in prebiotic sodas is believed to be beneficial in our diets, it’s unclear how beneficial prebiotic sodas can be.
In 2024, Poppi was sued by a consumer who claimed its prebiotic sodas do not improve gut health as much as the marketing suggested. The lawsuit claimed the amount of prebiotic agave inulin fibre in the sodas is insufficient. In order to reap the benefits of it, consumers would have to drink so many Poppi sodas that any benefits would be outweighed by the increased sugar consumption.
Zumpano does recommend checking prebiotic beverage’s sugar content.
“These drinks can contain a lot of added sugar which is not good for your overall health,” she explains, adding that it’s best to limit intake and opt for prebiotic foods most often.
Source: TheHill.com