There’s zero doubt that the beverage industry is experiencing a new wave of CSD innovation, but what we call this reimagining is still a little fizzy. Gut Health Drinks? Functional Pop? Or we could follow the lead of Walmart last week and just call it a clean and simple “Modern Soda.”
On LinkedIn Friday, Nick Scutari-Dunn, an associate merchant at Walmart, showcased Modern Soda as the mass chain’s newest category designation with a set that features gut health trend leaders Poppi, Olipop and Culture Pop, alongside zero-calorie brand Zevia.
“This new category will bring your favorite healthy soda brands to one location both in-store and online,” Scutari-Dunn wrote. “We are thrilled to see these brands continue to exponentially grow and provide healthy alternatives for our customers!”
Soda’s comeback in a better-for-you format has been one of the most significant stories in the beverage industry for several years running, but 2024 may have been a breakout moment for the trend – between Poppi’s mainstream coming out with a Super Bowl ad back and the continued success of Zero Sugar variant lines from major conglomerates like Coke, Pepsi and KDP.
Last week, CNN reported that refreshed marketing approaches and an increase in younger consumers has helped fuel soda’s return. Citing Evercore ISI data, the outlet reported that soft drink volume sales rose 1.3% in Q3 2024 – a stark difference from even just a few years ago when CSD sales were regularly falling around 4% annually.
“[S]oda sales grew during the pandemic as consumers loaded up at grocery stores and returned to old favorites with restaurants closed,” the CNN report stated. “More recently, soft drink sales have been aided by lower- and middle-income consumers seeking inexpensive indulgences, companies and analysts say.”
A health halo is no doubt having an impact as NielsenIQ reported retail dollar sales of all CSDs were up 4.6% in the 52-weeks ending September 21, with low calorie sodas up 8% in the period compared to a 3% rise for “regular” (i.e. sugary) lines.
And Modern Soda brands are certainly making their mark. Poppi dollar sales grew 167.1% in the same period, while Olipop sales were reported up 129.2%.
The brands are no doubt bullish, and they see a long runway ahead of them. Just take it from Andrew Steele, Olipop’s VP of Sales for c-store, drug and FSOP, on LinkedIn.
“Modern Soda is a ‘thing’ at Walmart,” he wrote. “[C]oming to a c-store/drug store near you in 2025 too.”