Pepsi introduces prebiotic cola months after Poppi acquisition
Pepsi Prebiotic Cola comes just four months after the beverage giant announced its $1.95 billion acquisition of upstart Poppi. Soda consumption has broadly fallen over the past two decades in the U.S. But prebiotic sodas, fueled by Poppi and fellow newcomer Olipop, have won over health-conscious consumers over the past five years with their gut-health claims. The acquisition closed in May.
Prior to the deal, Pepsi had reportedly aimed to launch its own functional soda under its Soulboost brand, but canceled those plans.
As demand for its drinks falls domestically, Pepsi is leaning into health trends like the protein and fiber crazes to attract customers. In the second quarter, the company's North American beverage volume shrank 2%. Its namesake soda was one of the few bright spots, helped by the success of Pepsi Zero Sugar.
Consumers will be able to buy Pepsi Prebiotic Cola online starting in the fall and in retailers next year. The new drink contains three grams of prebiotic fiber — one gram more than Poppi's soda, but only a third as much as Olipop's fiber content.
The new Pepsi beverage also contains five grams of cane sugar. In the U.S., classic Pepsi is sweetened with corn syrup.
Artificial sweeteners and high-fructose corn syrup have come under fire from Health and Human Services Secretary Robert F. Kennedy Jr. and his "Make America Healthy Again" agenda. President Donald Trump, a longtime fan of aspartame-sweetened Diet Coke, claimed in a social media post on Wednesday that Coca-Cola has agreed to put "REAL Cane Sugar" back in its namesake soda, which contains corn syrup in the U.S. The company has not confirmed the announcement.
For its part, Coke introduced its Simply Pop prebiotic soda brand in February to consumers on the West Coast and in the Southeast, just weeks before Pepsi announced the Poppi deal. Executives could share mroe updates on the line's performance during Coke's earnings conference call on Tuesday morning.
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