Was it fiber or taste that propelled Olipop and Poppi?

Are Americans so worried about their stomach health that they’re willing to spend more than three-quarters of a billion dollars a year on gut-health-promoting sodas?

That might be too simple an explanation for the rapid growth of competitors Olipop and Poppi, according to a fascinating analyst in the Food Institute site by Dr. James Richardson is the founder of Premium Growth Solutions,rt a strategic planning consultancy for early-stage consumer packaged goods brands.

The author follows the growth and marketing strategies of the brands from 2018 to the present, noting the strategic use of social media and influencers to broaden their appeal. But when it came to messaging, he doubts gut health was what motivated most consumers to try, and continue to buy, the products.

“As fun as it is to talk about functional soda and “food as medicine” taking off, neither of these brands makes this case to me with available research. I believe these brands are actually part of a different set of converging trends in CPG – better-tasting weight management soft drinks AND beverages with healthy halo of no specific importance,” he writes.

“Both Poppi and Olipop offer a combination of ultra-low-sugar content (i.e. diet soda equivalent) + enjoyable, nostalgic soda flavors many young people raised on diet soda have not consumed before. Remember, many Millennials and Gen Z grew up in a completely diet soda world, if they even drank soda at all. My grandparents had real cream soda at the soda fountain but not my teenagers,” Richardson concludes.

I’ve tested Poppi, writing about it on my blog, and also tried Olipop. Neither blew me away, the Stevia taste is just not to my liking.

But an old guy like me isn’t the market these drinks are going after, at least not yet.

Pepsi bought Poppi this year for $1.95 billion, so it sees a future in this category. CocaCola has launched its own prebiotic brand, Simply Pop, so it wants into the category as well. The big boys will bring their marketing muscle to the category and try to broaden its reach. Let’s see how consumers respond.