PepsiCo Enters Functional Beverage Market With First Prebiotic Cola

PepsiCo plans to debut a prebiotic cola under its namesake soda brand this fall.

Pepsi Prebiotic Cola is released just four months after the beverage giant announced its $1.95 billion acquisition of upstart Poppi. Over the last two decades, soda consumption in the United States has declined significantly. However, prebiotic sodas, lead by Poppi and fellow newcomer Olipop, have won over health-conscious customers in the last five years with gut-health claims. The acquisition was completed in May.

Prior to the deal, Pepsi had reportedly planned to launch its own functional soda under the Soulboost brand, but those plans were canceled.

As domestic demand for its drinks falls, Pepsi is leveraging health fads like the protein and fiber crazes to attract customers. In the second quarter, the company’s North American beverage volume fell 2%. Its namesake soda was one of the few bright spots, due to the success of Pepsi Zero Sugar.

Customers will be able to purchase Pepsi Prebiotic Cola online beginning in the fall and in stores next year. The new drink contains three grams of prebiotic fiber, one more than Poppi’s soda but only one-third of Olipop’s fiber content.

The new Pepsi drink also has five grams of cane sugar. In the United States, classic Pepsi is sweetened with corn syrup.

Health and Human Services Secretary Robert F. Kennedy Jr. has criticized artificial sweeteners and high-fructose corn syrup as part of his “Make America Healthy Again” campaign. On Wednesday, President Donald Trump, a fan of aspartame-sweetened Diet Coke, announced on social media that Coca-Cola had agreed to reinstate “REAL Cane Sugar” in its namesake soda, which now contains corn syrup in the US. The company has not confirmed the announcement.

Coke, for its part, launched its Simply Pop prebiotic soda brand in February to consumers on the West Coast and Southeast, only weeks before Pepsi revealed the Poppi partnership. Executives may provide additional information on the line’s performance during Coke’s earnings conference call Tuesday morning.