Category
A Modern Retail article earlier this week cited a report that Poppi had spent $43 million on advertising in the first four months of the year.
The amount, to put it in perspective, was more than Gatorade or Dr. Pepper.
The spend, no doubt, has lifted the brand. But the message, it seems, may be lifting the better-for-you soda category—and, therefore, its closest competitor, too.
From the article:
“Poppi’s large media investment may have also helped boost its competitor, Olipop. The two brands push a similar message: Poppi with “the future of soda is now” and Olipop with “a new kind of soda.” Carly Sutherland, a brand and consumer experience strategy consultant, said Poppi seems to have a brand distinction problem next to the other alternative-soda brands.
“A scan of both brands’ messaging, owned channels and performance marketing ads illustrates they are practically mirroring each other,” Sutherland said in an email.
Google Trends shows searches for “Olipop lawsuit” spiked in June, when the Poppi lawsuit gained attention, potentially signaling that customers aren’t distinguishing between the two brands and may have searched for Olipop when they meant to search for Poppi. “Once both brands have collectively changed consumer soda preference/behavior, they’ll need to prioritize distinguishing themselves from one another,” Sutherland said.
The insight, it seems, is rooted in 50+ years of fizzy sugar water history. And it’s set to repeat itself.
Pepsi, with former CEO Donald Kendall at the helm, famously ignited the Cola Wars. And while there’s plenty of history to that time period, the most poignant for Poppi and Olipop is how Kendall’s aggressive advertising spend forced both leaders into aggressive spending.
From an Economist article:
In 1975 Coca-Cola spent around $25m on advertising and PepsiCo some $18m. By 1985 those figures had shot up to $72m and $57m, respectively. In 1995 Pepsi outspent Coke by $112m to $82m.
Coke, of course, kept its lead in the soft drink market, but Pepsi had closed the gap during the initial onslaught of advertising—only to lose its gains over time.
Both, though, grew incredibly, and the money spent by both seems to have created mutual winners by making the category a winner. Poppi, it appears, is betting on making it happen again—but this time with fiber.