In the last decade, brands like kombucha and prebiotic sodas have risen to billion-dollar valuations, taking market share from traditional beverages. Established companies like Coca-Cola and Pepsi have begun divesting from juice brands while heavily competing against these newer entrants. The major soda companies are adopting strategies that involve acquiring emerging brands for integration into their portfolios. Notable actions include Pepsi’s $2 billion acquisition of Poppi and Coca-Cola’s investments in products like Fairlife milk. The emphasis on keywords associated with health and wellness has become pivotal for sustaining market relevance.
Over the past decade, fizzy newcomers with social-native branding and keywords like "kombucha," "prebiotic," "probiotic" and "protein" became billion-dollar brands. Sugar-free rivals like Poppi and Olipop became ubiquitous in US stores.
The big three - Coca-Cola, Pepsi, Dr Pepper - have been working to shut down these upstarts. In the past few years, big beverage has made acquisitions and heavily advertised their own products with all the right new keywords to build back their hold on beverage sales.
Pepsi's $2 billion acquisition of Poppi, a sugar-free prebiotic soda startup, earlier this year is a prime example of the strategy that the big brands are employing.
Coca-Cola's acquisition of Fairlife, a filtered milk brand that is relatively higher in protein and lower in sugar than typical milk, showcases big brands investing and potentially acquiring new rivals over a longer horizon.
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