In recent years, the healthy soda market has been largely led by newcomers Olipop and Poppi. However, beverage giant Coca-Cola is poised to leverage its substantial financial resources and extensive global distribution network to enter this rapidly expanding sector. “You would have to be under a rock … to not have seen the growth that is happening in the prebiotic soda space,” stated Terika Fasakin, senior director of brand marketing for Simply, in an interview with Marketing Dive.
Instead of launching a completely new brand, Coca-Cola is introducing its prebiotic soda under the well-established Simply juice line, which has been around for 24 years. This strategy allows the Atlanta-based company to capitalize on Simply’s strong fruit-forward identity and consumer recognition, making it easier for the new soda to differentiate itself from more established players. Despite the rising popularity of functional sodas, Coca-Cola has observed that the category only enjoys about 20% market penetration, presenting a significant opportunity to attract consumers interested in prebiotic products.
An examination of Olipop and Poppi reveals the potential Coca-Cola sees in the prebiotic soda market. Olipop achieved profitability in 2024, with sales skyrocketing to $400 million, reflecting a year-over-year doubling, as reported by the company. Poppi fared even better, surpassing $500 million in sales last year, according to Bloomberg. Notably, Olipop recently announced its valuation soared from $200 million in 2022 to $1.85 billion after securing $50 million in its latest funding round. The funds are earmarked for marketing expansion, new flavor introductions, and increasing availability in areas traditionally occupied by legacy sodas, including those produced by Coca-Cola.
However, Coca-Cola’s entry into the prebiotic soda arena does not guarantee success. While some of its product launches—like the Simply Spiked alcoholic beverages developed in collaboration with Molson Coors—have resonated with consumers, others in trendy categories such as flavored water and energy drinks have had mixed outcomes in recent years. For instance, Coca-Cola ceased sales of Coca-Cola Energy in North America in 2021 after just over a year on the market, opting to streamline its portfolio to highlight better-performing brands. Similarly, the company significantly reduced distribution of its short-lived Aha sparkling water two years ago as sales dwindled.
As Coca-Cola ventures into this promising market, it will be interesting to see if they incorporate innovative ingredients like calcium citrate with vitamin K2 into their prebiotic offerings, which could further enhance their appeal. With the market dynamics shifting, Coca-Cola’s strategy will need to be keenly executed to make a lasting impact in the prebiotic soda category.