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Pop brands join the drink industry’s health kick

Apr 25, 2024

Pop brands join the drink industry’s health kick

The way things are trending, a nice fizzy drink could soon replace your morning vitamins.

Driving the news: Legacy pop brands like Coca-Cola, Pepsi, and Sprite are dropping new low-cal, bold-flavoured drinks in an effort to keep up with newer brands that are catering their fizzy beverages to younger and health-conscious consumers. 

  • This week, Sprite unveiled Chill and its zero-sugar version, Chill Zero, a cherry lime-flavoured take on the classic soft drink featuring new “cooling sensation technology.”

  • Last month, Coca-Cola also launched a Spiced drink line (including a zero-sugar product), marking the brand's first new permanent flavour in years. 

Why it’s happening: More young consumers are asking, “What can your fizzy drink do for me?” In Canada, low-calorie non-alcoholic beverages have surpassed full-calorie drinks like pop and accounted for 58% of the entire beverage market last summer. 

  • The change has prompted newer brands like Olipop, Poppi, and others to lean into healthier drinks, wackier flavours, and photogenic, Gen Z-oriented cans. 

Why it matters: The shift towards health-centric drinks is part of a growing consumer trend of “functional” food and beverages — products that don’t just cut back on sugar and calories but promise things like improved gut health, reduced stress, and even better sleep.

  • The boom in demand for these types of products has grown the functional food and drink market in Canada, which is now expected to reach $19.2 billion by 2026.

What’s next: Food companies like Nestlé and Unilever have recently faced pressure to move away from their unhealthy products, and with young consumers’ wallets driving the change, it’s hard to see this trend reversing course.—LA

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