By Amelia Lucas
Coca-Cola is launching a prebiotic soda brand called Simply Pop, taking on upstarts Olipop and Poppi.
Starting in late February, consumers on the West Coast and in the Southeast will be able to try Coke’s iteration of the trendy drink.
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.
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’s game, shelling out up to $8 million to reach the game’s record audience.
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’s a fraction of the overall soda market, which is worth billions of dollars.
Simply Pop’s first product lineup leans fruity, in a nod to Coke’s Simply juice brand. Flavors include pineapple mango, lime, strawberry, fruit punch and citrus punch.
“We went out and really listened to consumers. They love this space, they’re really looking for stuff that tastes good, and that’s something we know how to deliver on at Simply and at Coke,” said Becca Kerr, CEO of Coke’s North American nutrition unit, which includes its Simply and Fairlife brands.
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.
They also have six grams of prebiotic fiber — triple Poppi’s fiber content but less than Olipop’s nine grams.
Prebiotics have taken off thanks to claims that they can boost “gut health” by helping beneficial bacteria grow in the gut. Their health benefits haven’t been conclusively proven.
“We do see that there tends to be an appetite for these type of products with younger consumers, like millennial and Gen Z,” Kerr said. “We see an interest in these types of products from multicultural consumers.”
But health claims can prompt pushback. Poppi is in settlement talks over a lawsuit filed in late May that challenges the company’s marketing, arguing that Poppi’s products are not as healthy for the gut as advertised.
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.
While it’s 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 — compared with the more than $400 million in sales that Olipop netted in 2024.
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.
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This article originally appeared here and was republished with permission.
