beverages

PepsiCo Expands Prebiotic Playbook


PepsiCo, under pressure to accelerate innovation and align with “make America healthy again” consumer trends, is adding Pepsi Prebiotic Cola to its permanent portfolio. The move follows a limited-time offer last fall that sold out in just 30 hours. New ads highlight the drink’s nutritional profile — 5 grams of sugar, 3 grams of fiber and 30 calories — while emphasizing taste, positioning it as “Unbelievably Pepsi.”

The national launch is part of broader shifts within PepsiCo’s North American beverage business, even as the company continues expanding Poppi, the prebiotic soda brand it acquired for $1.95 billion last year. In recent financial results, PepsiCo said Poppi generated approximately $745 million in annual sales, a 45% increase year over year.

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The rollout also comes amid rapid growth in the prebiotic soda segment, including Coca-Cola’s recently introduced Simply Pop. Pepsi’s formulation addresses a persistent category hurdle: taste skepticism. The company is betting that a more traditional cola flavor profile will attract consumers who have been hesitant to embrace “healthier” sodas. The launch also arrives as the category becomes more cautious about health messaging following Poppi’s legal settlement tied to a class-action suit alleging overstated gut-health benefits.

During last week’s earnings call, management pointed to momentum in the North American beverage division from ongoing campaigns, including “Food Deserves Pepsi” and the “Pepsi Zero Sugar Taste Challenge,” which executives said contributed to double-digit revenue growth and market share gains for Pepsi Zero Sugar. New flavors, including Pepsi Wild Cherry & Cream, were also cited as drivers of share growth.

In December, the company announced sweeping changes aimed at delivering “record productivity,” following pressure from investor Elliott Investment Management.

While much of that effort has focused on the food division, including Lay’s and Tostitos, beverages are also seeing some glow-ups. The Gatorade franchise, which recorded a 5% sales decline last year, is undergoing both formulation and marketing updates. These include Gatorade Lower Sugar, made without artificial colors or flavors, continued expansion of Gatorade Zero Sugar, a refreshed visual identity, and new formats such as tablets and powders designed to emphasize customization and convenience.

 

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