Poppi, a popular alternative to major beverage brands, has significantly increased its advertising spending over the past year, outspending some of the very players it aims to rival. According to a report from ad intelligence platform MediaRadar, Poppi spent over $43 million on advertising from January to April, nearly six times the amount it spent in all of 2023. This surge in advertising spending has placed Poppi in the same league as major players like Gatorade, Dr. Pepper, Coca-Cola, and Red Bull, with only Coca-Cola and Red Bull outspending Poppi during this period.
The focus of Poppi’s advertising efforts has been primarily on television ads and digital channels, with the company allocating more than $25 million to TV ads and $18 million to digital ads. This aggressive marketing strategy has helped propel Poppi to become one of the fastest-growing consumer packaged goods (CPG) brands in 2023, alongside other notable brands like Prime and Feastables, according to Numerator, a division of Kantar.
Barry Thomas, a senior global thought leader for Kantar and former Coca-Cola executive, highlighted the significance of brands like Poppi in driving growth in the food and beverage industry. He noted that these brands are resonating with Gen Z consumers and are digitally native in their marketing approach, which is revolutionizing the CPG landscape. Traditional food and beverage companies are taking note of challenger brands like Poppi and are adapting their marketing strategies to compete in this new era of consumer preferences.
Poppi’s rise to prominence has not been without scrutiny, particularly regarding its claimed health benefits. The company touts gut health benefits by combining prebiotics and natural flavors in its soda. However, a class-action lawsuit filed by a former customer in late May called into question the efficacy of these health claims, alleging that the soda does not contain enough of the fiber inulin to benefit the digestive system. Despite the lawsuit, Poppi has maintained its advertising strategy, emphasizing its commitment to delivering a better-for-you soda to consumers.
The lawsuit has also had implications for Poppi’s competitor, Olipop, as both brands share a similar message of offering a healthier alternative to traditional sodas. The similarities in branding and messaging between Poppi and Olipop have led to consumer confusion, with searches for „Olipop lawsuit“ spiking in June when the Poppi lawsuit gained attention. Brand and consumer experience strategy consultant Carly Sutherland noted the need for both brands to differentiate themselves to avoid consumer confusion and establish a distinct brand identity.
In conclusion, Poppi’s exponential increase in advertising spending reflects its ambition to challenge major beverage brands and capture a growing market of health-conscious consumers. While facing scrutiny over its health claims, Poppi remains steadfast in its commitment to providing a better-for-you soda option. As the landscape of the food and beverage industry continues to evolve, brands like Poppi and Olipop are at the forefront of driving change and shaping consumer preferences.