PepsiCo Dips Its Toes Into the Sparkling Water Market
- 6 years ago
PepsiCo Dips Its Toes Into the Sparkling Water Market
Sales of domestic sparkling bottled water — not including imports like San Pellegrino — doubled between 2015
and 2017 to $8.5 billion, according to the DrinkTell database.
Bubly marks the most direct attack yet on LaCroix, a brand of flavored sparkling waters
that has, in recent years, seen sales soar as it developed a near cultlike devotion among millennials.
In 2016, bottled water sales by volume surpassed carbonated soda for the first time, according to Beverage Marketing Corporation’s DrinkTell database.
On Thursday PepsiCo is introducing Bubly, a new brand of sparkling water
that comes in eight flavors, including apple, strawberry and mango, in brightly colored cans with lowercase lettering and greetings on the pull tabs.
But it is also an acknowledgment that sales of carbonated soda are falling as consumers
increasingly shun sugary drinks in favor of healthier options, including water.
“It just happened to be the right product for the right time.”
LaCroix’s growth surge hasn’t gone unnoticed on Wall Street, where some analysts predicted
that National Beverage could be an acquisition target for PepsiCo, Coca-Cola or another manufacturer looking to enter the market quickly with a well-established brand.
It has muddled along for years, and in regulatory filings by National Beverage,
LaCroix was often mentioned far behind two other brands, Shasta and Faygo.
Sales of domestic sparkling bottled water — not including imports like San Pellegrino — doubled between 2015
and 2017 to $8.5 billion, according to the DrinkTell database.
Bubly marks the most direct attack yet on LaCroix, a brand of flavored sparkling waters
that has, in recent years, seen sales soar as it developed a near cultlike devotion among millennials.
In 2016, bottled water sales by volume surpassed carbonated soda for the first time, according to Beverage Marketing Corporation’s DrinkTell database.
On Thursday PepsiCo is introducing Bubly, a new brand of sparkling water
that comes in eight flavors, including apple, strawberry and mango, in brightly colored cans with lowercase lettering and greetings on the pull tabs.
But it is also an acknowledgment that sales of carbonated soda are falling as consumers
increasingly shun sugary drinks in favor of healthier options, including water.
“It just happened to be the right product for the right time.”
LaCroix’s growth surge hasn’t gone unnoticed on Wall Street, where some analysts predicted
that National Beverage could be an acquisition target for PepsiCo, Coca-Cola or another manufacturer looking to enter the market quickly with a well-established brand.
It has muddled along for years, and in regulatory filings by National Beverage,
LaCroix was often mentioned far behind two other brands, Shasta and Faygo.