Pepsi is betting a popular health trend can get more people to drink its soda
As younger drinkers shun traditional soda brands for gut-friendly alternatives, PepsiCo is hoping to lure them back with its iconic cola flavor.
On Monday, the company is unveiling a healthier version of its flagship flavor called āPepsi Prebiotic Cola.ā The permanent addition to its lineup builds off its acquisition of prebiotic soda brand Poppi, further entrenching itself in the fast-growing ābetter-for-youā trend thatās been a hit with Gen Z.
The new soda is āreimagining what a traditional cola is for the changing consumer needs,ā Ram Krishnan, CEO of PepsiCoās U.S. beverage portfolio, told CNN. āThis is the natural evolution of whatās next.ā
Pepsi hopes the new version reignites interest with the roughly 120-year-old cola flavor, which Krishnan said has fallen out of favor as consumers are increasingly buying sparkling waters and hydration drinks.
A can of Pepsi Prebiotic Cola shares similar traits to Poppi, including having no artificial sweeteners, the same amount of sugar (5 grams of cane sugar), and roughly the same number of calories (30) and 3 grams of prebiotic fibers ā an enhancement that has propelled the modern soda category to $1.8 billion, according to research firm Circana.
The new soda, which comes in original and cherry vanilla flavors, will first be sold online starting on Black Friday in November before rolling out to major retailers in February 2026. Prices for a 12-ounce can and an 8-pack of 12-ounce cans will be slightly higher than a traditional Pepsi and more aligned with Poppiās premium positioning.
Cola crisis
Consumers are drinking the traditional cola flavor less often, which poses a problem for a company thatās built itself around just that.
Over the past two years, the average number of times a consumer drinks the traditional cola flavor has dropped from 9.4 times each month to 7.7, Krishnan said, citing research from consumer insight firm Kantar.
Diet colas are falling out of favor even faster ā showing a 27% decrease in consumption over the past three years ā with Gen Z drinkers consuming the flavor substantially less than their older counterparts, he said.
Although Poppi has a cola flavor, Krishnan revealed the brand is having more success with its fruity flavors, leaving the door open for Pepsi.
āThatās the problem to solve for us: No oneās doing much to retain a lot of these consumer cohorts who are leaving for other options,ā he told CNN.
Another demographic PepsiCo hopes to attract is Gen Z drinkers who buy ābetter-for-youā beverage brands such as Olipop and Poppi but havenāt tried Pepsi. Krishnan hopes they can be enticed with this new version that has the distinct Pepsi flavor.
āWe think both of these complement each other because it addresses both ends of the spectrum,ā he said. āPoppi is the original modern soda category leader, and then Pepsi is one of the founding fathers of cola.ā
As for Poppi, Krishnan said the company is still operating separately. But Poppiās availability will be supercharged in September when itās integrated with PepsiCoās distribution system, giving the brand access to thousands more locations, including restaurants, travel outlets and colleges, he revealed.
Risky release?
Launching a permanent flavor without trialing it has its risks. Coca-Cola learned that the hard way last year after its much-hyped Spiced flavor failed to resonate with consumers and was discontinued just six months after its splashy debut.
However, adding another healthier-aimed soda to Pepsiās beverage portfolio could spur sales. In its second quarter earnings report last week, PepsiCo (PEP) reported that North American volumes dipped 2% across its beverage unit. Its low-calorie sodas like Zero Sugar and Wild Cherry Zero were among the bright spots for the company.
Nate Rosen, editor-in-chief of consumer brands-focused newsletter Express Checkout, questions why PepsiCo is launching the new Pepsi when it owns Poppi, which has a young following and helped establish the modern soda category. However, he thinks the two brands can coexist.
āThis prebiotic version is banking heavily on the Pepsi brand recognition, but it feels more like a defensive āme-tooā-type product,ā Rosen told CNN. āPoppi remains the clear winner in the ābetter-for-youā soda category. It has the credibility and positioning that a āhealthifiedā Pepsi will struggle to match.ā