Capital Economy, Business and Finance
Pepsi and Coca-Cola are still fierce competitors, but the contours of their rivalry look different now.
This week Pepsi announced it was buying the prebiotic soda brand Poppi for nearly $2 billion, giving a hefty valuation to a drink being sold as a home-brewed beverage at farmers’ markets just a few years ago.
Pepsi now owns a rival to Simply Pop, Coca-Cola’s new prebiotic drink range, and will hope it can revive flagging sales caused by Americans spending less on soft drinks and snacks.
The ‘functional beverage’ market is a good bet: it’s predicted to grow by 65 per cent in the next few years and enjoys the free publicity of influencers looking for the next health fad.
Ahead of this year’s Superbowl, Poppi sent pink vending machines to creators across the US. Videos subsequently posted by the recipients were viewed millions of times.
