Coca-Cola and PepsiCo are shaking up the soda biz to attract younger, more selective drinkers.
Why it matters: Americans' affinity for soda has declined in recent years, and soda giants are trying to lure them back with smaller serving sizes, and TikTok-able flavors.
- Brands are catering to shoppers who see soda as a treat, not a staple.
- Smaller, cheaper packages are pulling in curious shoppers — and helping balance health perceptions.
- Social-media-fueled flavors like "dirty soda" are pulling Gen Z into the cooler.
Soda size shift
The big picture: Coca-Cola announced Wednesday it will debut its 7.5-ounce mini can singles in convenience stores nationwide Jan. 1 — the first time the small cans will be sold individually.
- Coke's research found that convenience store buyers wanted "something under 10 ounces and under $1.50," Joel Bishop, president of commercial leadership for Coca-Cola North America, told Axios.
- At a $1.29 price point, the mini cans target impulse buys and drive trials as "a majority of purchases happen in the cold vault," Bishop said.
Dirty soda and the flavor race
State of play: If Coke is leaning into portion control, Pepsi is leaning into indulgence. Both are betting that new, limited-time flavors can make soda feel fun.
- PepsiCo is rolling out Dirty Mountain Dew Cream Soda Dew, its first "creamy" flavor and a play on the viral "dirty soda" trend.
- Dirty soda — originally cola mixed with coconut syrup — started in Utah and has gone mainstream thanks to TikTok and Hulu's "The Secret Lives of Mormon Wives."
What they're saying: CEO Ramon Laguarta told analysts Thursday during an earnings call that Pepsi's flavor portfolio — from Wild Cherry to Baja Blast — is drawing "new, younger consumers" to the brand.
- "That's how we stay ahead of the curve," Laguarta said on the company's earnings call.
Coca-Cola is also leaning into limited-edition drinks. Next up: Coca-Cola Cherry Float, launching in February.
- Bishop told Axios Cherry Float's creamy twist came straight from consumer demand: "They liked the combination of the creaminess of vanilla ice cream plus a favorite, Cherry Coke, was something they were asking for."
Between the lines: The rise of prebiotic sodas — from brands like Poppi and Olipop — is reshaping what "soda" even means.
- These fizzy, fiber-boosted drinks promise gut health with Instagram-ready packaging and have exploded in convenience and grocery channels, pushing legacy soda makers to respond with cleaner ingredients.
Coke with cane sugar coming soon
What's next: Coca-Cola will launch a cane-sugar-sweetened Coke in glass bottles later this fall — "starting in a few markets in a few weeks," Bishop told Axios.
- President Trump said in July that Coca-Cola would use cane sugar, rather than high fructose corn syrup, in Coke.
- "It's part of our ongoing strategy with innovation," Bishop said, adding it's about giving consumers options that they want to "enjoy Coca-Cola in the packages and formats they love."
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