Pepsi launches new cola that's good for your gut
What's the story
PepsiCo has announced the launch of a new prebiotic cola under its flagship soda brand. The move comes just four months after the beverage giant's $1.95 billion acquisition of upstart Poppi, which was completed in May. The decision to introduce this innovative drink comes as PepsiCo looks to tap into health trends and attract more customers amid declining soda consumption in the US over the past two decades.
Product details
New drink packs 3 grams of prebiotic fiber
Pepsi Prebiotic Cola will be available for purchase online starting this fall and at retail stores next year. The new drink packs three grams of prebiotic fiber, which is one gram more than what Poppi's soda offers but only a third of rival Olipop's fiber content. Pepsi Prebiotic Cola also has five grams of cane sugar as its sweetener, unlike the corn syrup used in classic Pepsi in the US.
Market adaptation
PepsiCo adapting to health trends as US soda demand falls
As demand for its drinks falls in the US market, PepsiCo is adapting to health trends such as protein and fiber. The company's North American beverage volume shrank 2% in Q2. However, its flagship soda brand remained a bright spot in sales due to the success of Pepsi Zero Sugar. This strategic shift shows how major beverage companies are changing their product lines to meet changing consumer preferences for healthier options.
Competitor moves
Coca-Cola's response to the trend of health-focused beverages
In response to the growing trend of health-focused beverages, Coca-Cola launched its Simply Pop prebiotic soda brand in February. The product is currently available for consumers on the West Coast and in the Southeast. PepsiCo's decision to enter this market with its own prebiotic cola shows how both companies are competing for consumer attention amid changing tastes toward healthier drink options.