As Soda Sales Suffer, Beverage Marketers Are Shifting to a New Stream of Income: Water

In fact, during the Super Bowl on Feb. 5 of this year, PepsiCo used the platform to pitch its new premium water brand, Lifewtr, to the game’s 111.3 million viewers instead of pushing its titular soda. “Launching a brand during a cultural moment with audience scale that only the Super Bowl can deliver provided us with the perfect way to introduce our TV spot to the world with big results,” said Todd Kaplan, vp, water portfolio, PepsiCo North America Beverages.

PepsiCo wasn’t alone: The Wonderful Company brought its water brand, Fiji, to the Big Game for the first time. So did Dr Pepper Snapple Group’s Bai Brands—the healthier alternative to soda that it acquired in November 2016 for $1.7 billion—with a spot featuring Bai’s “chief flavor officer” Justin Timberlake. The question:
Why now?

“It’s clear that soda sales are suffering in the U.S.,” said Ruth Bernstein, co-founder and chief strategy officer at Yard, a strategic image-making agency. “From heightened consumer awareness on the health implications of sugar drinks, to government interventions in the forms of sugar taxes, it’s not an easy time to be in the business of selling a soda. It’s no surprise then that the big players are broadening out their offering.”

Michael Wachs, CCO at GYK Antler, an independent marketing agency, agreed. “For years these bigger companies have made a fortune on making products that, at the end of the day, are enjoyable, but not healthy for you,” said Wachs. “That’s why they are trying to increase their portfolio of brands that are better for you—like water. … It makes sense that water is getting courted by everyone.”

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