Poppi and Olipop are the trendy new sodas. Coca-Cola is responding

NEW YORK -- Poppi and Olipop, watch out: Coca-Cola is entering the "better for you" soda category with a response of its own.

This month, the beverage behemoth is rolling out Simply Pop, a prebiotic-packed soda that is flavored with fruit juice and vitamins that it claims "supports gut health," in response to the growing popularity and sales of its smaller rivals.

"We saw the prebiotic soda space really emerging as an area of interest for consumers, and we were paying really close attention to it," said Becca Kerr, CEO of Coca-Cola's nutrition unit. "We think it's a space that is a great consumer fit and also offers a lot of growth."

Adding Simply Pop is part of Coca-Cola's manifesto of becoming a "total beverage company" beyond its regular stable of sodas, Kerr told CNN. Notably, the company has seen success with milk and protein shakes.

Simply, which first started as an orange juice brand, has expanded into other fruit juices, mocktail mixes, canned cocktails and now sodas. Using the Simply name was based on consumer feedback and adoration for the 21-year-old brand.

Coca-Cola is likely hoping the recognizable "Simply" brand will help the new soda quickly establish itself, against Poppi and Olipop, the two prebiotic-packed soda startups that have attracted a loyal fandom in their few short years of existence.

"After watching from the sidelines, Coke clearly has determined that the gut soda segment has legs," Duane Stanford, editor and publisher of Beverage Digest, told CNN. "The Simply brand is a smart way to get into a fast-growing and premium soda segment that is attractive to young consumers and resonates on social media."

Although the functional beverage space trails in sales compared to regular sodas, it's growing at a faster pace. The category is projected to generate $2 billion in sales by 2029, according to Coca-Cola's research.

"There's a role that functional beverages are playing in people's lives," Coca-Cola's Kerr said. "It's giving people more chances and to try different things at different times throughout the day."

Olipop is probably the biggest beneficiary of the wellness trend, with the soda brand announcing a $1.85 billion valuation last week. And for the first time since its 2018 launch, the brand turned a profit with last year's sales surpassing $400 million - double compared to the year prior.

Simply Pop is launching with five flavors: lime, pineapple mango, fruit punch, citrus punch, and strawberry. They will be available by the case on Amazon and sold in 12-ounce cans for $2.49 each at national grocery stores.

Although Coca-Cola has a bigger retail footprint, marketing budget and distribution powers, the 133-year-old brand's entrance into the space isn't scaring Olipop CEO Ben Goodwin.

"It's a massive honor that the largest soda brand in the world has decided that the category I invented, and the Olipop team has brought to life, is a great place for them to seek growth," he told CNN.

The-CNN-Wire & 2023 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.