The launch of another prebiotic soda isn’t such big news these days. But when Coca-Cola and Pepsi decide to weigh in – and do not (as has been much rumored) open up their checkbooks to do so – it’s kind of a big deal. We’re still awaiting further details on these, but in the meantime, we’ve got some thoughts.
Brands That Pop: We’re not sure if anyone has a Poppi or OLIPOP tattoo, but we’re definitely sure nobody has one of the Simply or Soulboost logo. In both cases, the decision to deploy a pair of middling sub brands – rather than two of the biggest marks on the planet, or a completely new brand – as the launchpad for prebiotic soda suggests this is more of a shot in the dark than a full-blown assault on the category.
For its part, Simply has provided Coke with room to roll the dice on (for them) experimental projects, like Simply Spiked. And Soulboost – having barely existed in its prior guise as a functional sparkling water – is, for better or worse, like a new brand for Pepsi. Yet even with the soda giants’ vast resources, it’s hard to envision Simply or Soulboost taking away from Poppi and OLIPOP’s fans, many of whom have established deeper rooted connections with the brand via their social media presence and splashy activations at events; even a Super Bowl commercial is old hat. And that’s not even mentioning the independents whose grassroots support are often even more hard-won and loyal.
It’s Soda, Remember?: The innovation pipeline can be slow at the big strategics, which makes us think maybe Coke and Pepsi’s prebiotic pops got stuck in development hell for a bit too long. Why? While there’s nothing wrong with juice-sweetened soda (see Culture Pop and Evolution Fresh), the initial fruit-forward flavors for both Simply and Soulboost arrive just as consumers seem to have zeroed-in on what they really want from their “modern soda”: something that tastes like “soda.”
That suggests gut-healthy claims – like those OLIPOP spent considerable energy funding research on – are less important than giving drinkers a guilt-free way to have their familiar favorites; over the past year, both Poppi and OLIPOP have enjoyed success with cola, lemon-lime, root beer, cream soda and other classic CSDs, a tactic with which LIVE Soda and NO CAP! are also embracing. Against that backdrop, it’s a bit curious to Coke and Pepsi go with fruit flavors, to start with anyway.
Distro Domination: All this talk of branding and flavor may be quickly rendered moot once the Coke and Pepsi distribution machines start cranking up to full speed. The only question is how much and how soon they release the throttle.
From what we know, both Simply and Soulboost will receive a limited release at some regional chains before deciding what comes next. Walmart has notably made a commitment to the “modern soda” set with a dedicated shelf in over 4,300 locations – would they welcome Coke and Pepsi to the mix as well? The retailer’s influence isn’t to be diminished: they got Poppi to go national this spring (retaining Big Geyser in NYC) in exchange for a bigger store footprint. Yet pressure from the top will likely be exerted down the chain, as smaller brands get squeezed within a consolidated competitive field, conditions that may also disincentivize distributors to help seed new products.
What questions do you have about Coca-Cola and Pepsi entering the modern soda set? Email us at news@bevnet.com