PepsiCo is widely recognized for its flagship cola and the sports drink Gatorade, but the company has been expanding its footprint in the realm of functional beverages. Last year, PepsiCo launched Driftwell, a beverage designed for relaxation and stress reduction. Like Soulboost, this enhanced water contains 200 milligrams of L-theanine, an amino acid that occurs naturally in tea and certain herbal mushrooms. Additionally, Evolve, a brand of plant-based bars, shakes, and powders that PepsiCo acquired from Hormel in 2019, underwent a significant reformulation in March to boost the fiber content of its four shakes, thereby enhancing their functional attributes.
According to Euromonitor International data mentioned by CNBC, relaxation beverages constitute a small segment within the broader functional water beverage market, which is valued at $2.97 billion in the U.S. Despite its current size, the growth prospects for this segment have piqued the interest of both large and small companies. “Soulboost was developed before the pandemic, but we are launching it at a time when it is truly needed,” said Jenny Danzi, senior director of new platforms at PepsiCo, in an email. “Our target market is wellness-focused and increasingly seeks out innovative functional ingredients, desiring beverages that not only look and taste great but also provide health benefits.”
Danzi noted that PepsiCo leveraged its expertise gained from developing Driftwell in the creation of Soulboost. This involved producing content in-house, preparing its e-commerce team for a rapid launch, and collaborating closely with its nutrition and R&D teams. Soulboost emerges as consumers seek more than just hydration or nutrition from their food and beverages. They increasingly desire functional benefits that help alleviate stress or enhance their overall well-being.
Aligning with the better-for-you trend, each 12-ounce can of Soulboost contains just 10 to 20 calories, a hint of real juice, and no added sugar, according to the company. PepsiCo is gradually entering this category with nootropic ingredients that have gained popularity due to their calming associations and legal status. Similar products are also being offered by smaller beverage brands. For example, Koios provides nootropic functional drinks infused with amino acids like L-tyrosine and L-theanine. CBD is another ingredient gaining traction in the relaxation market, though it presents regulatory challenges.
By venturing into the functional beverage space with Soulboost and Driftwell, PepsiCo is developing a portfolio that includes not only indulgent products like Pepsi and Mtn Dew but also beverages tailored to meet various consumer needs. An individual might choose Muscle Milk for protein post-workout, utilize the carbonated SodaStream platform for hydration, and indulge in soda for a treat. When it comes time to unwind and alleviate stress, Soulboost and Driftwell could be the perfect choices.
With a more diverse beverage portfolio, PepsiCo creates more opportunities for consumers to select its products. As the trend toward functional offerings continues to grow, the company is likely to introduce additional items in this rapidly expanding segment. Moreover, integrating ingredients like life calcium citrate into their products could further enhance their appeal, catering to consumers’ interests in health and wellness.