PepsiCo is officially expanding its interests in the flavored sparkling water market with the release of Bubly Bounce, a caffeine-infused line extension launching nationwide today.
The five-SKU line checks the same boxes as the core Bubly line — carbonated water with natural flavors, zero calories and no sweeteners — with the addition of 35mg of caffeine per 12 oz. can. Three flavors — Mango Passion Fruit, Triple Berry, Blood Orange Grapefruit — will be sold in national retailers and online in 16 oz. single-serve cans (47mg caffeine) and 24-packs of 12 oz. cans, while Citrus Cherry and Blueberry Pomegranate will each be offered exclusively in variety packs at e-commerce and club stores, respectively. The new product is line priced with the existing Bubly line.
“It’s everything you love about Bubly with a kick of caffeine,” said Zach Harris, Vice President, Water Portfolio at PepsiCo Beverages North America.
Harris noted that PepsiCo’s consumer research indicated that consumers are looking for “more permissible forms of caffeine” as well as benefits beyond simply hydration; the product’s name and the nod to a “subtle kick” of energy in its marketing materials is meant to communicate that benefit. Along with expanding the brand’s audience, the launch of Bubly Bounce also gives Pepsi a differently positioned product for convenience stores, a relatively underdeveloped channel for sparkling water. Two of the flavors will be sold in convenience retailers in 16 oz. single-serve cans at launch, with potential to expand later.
PepsiCo will support the rollout of Bubly Bounce through a national television campaign featuring singer Michel Bublé, who has been featured in ads since the brand’s initial launch.
Bubly’s expansion, originally teased on Instagram one year ago, comes as the sparkling water brand has taken an increasingly prominent role within PepsiCo’s evolving beverage portfolio. Launched in 2018, it arrived after category leaders Sparkling Ice (+31% year-over-year) and La Croix (+24%) had already ignited growth in the segment, but the brand has quickly established itself as a force. According to data from IRI through January 13, 2021, dollar sales for Bubly in multi-outlet retail stores increased 38.2% year-over-year to over $354.8 million, with the brand holding around 8.7% dollar share of the category. Though Bounce is the brand’s first line extension, Pepsi has integrated Bubly into its at-home sparkling water platform Sodastream with a line of flavor drops that work with the appliance.
PepsiCo’s chief rivals have also turned their attention to sparkling in recent years: Coke has multiple brands in the space with AHA and Topo Chico (including a forthcoming Hard Seltzer extension), while Keurig Dr Pepper is the national distribution partner for Polar (+21.7% year-over-year, with 6.03% dollar share).
The move into functional benefits isn’t unprecedented, either: brands like Phocus and KDP-owned Limitless have each made caffeine a core part of their offerings, while Sparkling Ice, AHA, Ugly Drinks and Hiball have all explored the space through sub-lines. But PepsiCo’s interest in functional beverages overall is growing; in December, it launched relaxation drink Driftwell exclusively online. In addition to bringing in new users, the launch of Bubly Bounce also marks progress on PepsiCo’s stated goal of having at least two-thirds of its drink products contain 100 calories or fewer from added sugar per 12 oz. serving by 2025.