Tristan Donovan and Ann Gehan discuss the rise of health-focused soda brands, Poppi and Olipop, challenging the traditional soda industry. They explore the evolution of soda, consumer demand for healthier beverages, influencer marketing, and celebrity investments, hinting at the potential acquisition of these brands by major players.
The rise of functional sodas like Poppi and Olipop reflects shifting consumer preferences towards healthier beverage options.
The history of soda shows its evolution from a perceived health drink in the 19th century to a recreational beverage in modern times.
Deep dives
Soda Renaissance: Functional Sodas on the Rise
The 2000s saw a decline in traditional soda sales due to health concerns associated with sugary drinks. However, the soda industry has experienced a resurgence in recent years with brands like Poppy and Ollie Pop leading the way. These companies position themselves as offering functional or prebiotic sodas with added health benefits, setting them apart from traditional players like Pepsi and Coca-Cola. This shift in consumer preference has propelled the functional beverage industry to an estimated worth of $54 billion in North America.
Soda's Evolution: From Health Tonic to Counterculture Symbol
Soda's history dates back to 77 AD in Europe when people viewed carbonated mineral water as possessing healing properties. Bottling these drinks began in the 18th century, with early soda makers using caramel and sugar to enhance taste. In the 19th century, soda was positioned as a health drink, aided by the rising temperance movement in the U.S. Manufacturers added ingredients believed to cure ailments, including early versions of Coca-Cola containing cocaine for its perceived medicinal benefits.
Shift in Consumer Behavior: From Sugary Drinks to Healthier Alternatives
As awareness grew about the negative health effects of sugar, soda advertising shifted towards recreational aspects rather than health benefits from the 1960s onwards. The introduction of Diet Coke in the 1980s marked a turning point as consumers sought healthier alternatives. By 1998, soda sales peaked in the U.S., but a shift towards healthier options like bottled water emerged. Cities began imposing taxes on sugary beverages, leading to a decline in soda consumption.
The Emergence of New Players: Poppy and Ollie Pop
Amidst declining soda sales, startups like Poppy and Ollie Pop have disrupted the industry by offering functional and prebiotic sodas with health benefits. These brands have gained popularity due to aggressive social marketing strategies targeting influencers. Poppy and Ollie Pop's success has attracted significant investments, with Ollie Pop raising $39.7 million in 2022. The brands are reshaping the soda market, appealing to a health-conscious consumer base.
Soda has had its fair share of ups and downs, but now, a new wave of prebiotic pop promises to reinvent the fizzy drink consumers love. Poppi and Olipop are two buzzy, health-focused brands leading the charge. And David is cracking open a can of each to figure out whether these drinks really are soda's second coming...or just another wellness fad.
Featured Guests:Tristan Donovan, Author of Fizz: How Soda Shook Up the WorldAnn Gehan, Retail Reporter at The Information
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