Many soft drink makers are now venturing into healthier drinks. Aside from PepsiCo, another large soda maker is investing in “better-for-you” products. The Dr. Pepper Snapple Group, the maker of 7UP and Schweppes, plans to buy the entire Chinese brand Bai Brands for $1.7 billion to meet the demands of consumers who are looking for healthier beverages.
The Bai brand is popular in Mainland China for using plant-based sweeteners and ingredients that are infused with antioxidants. Unlike traditional fizzy drinks, the Bai beverage is naturally sweetened, contains only five (5) calories, and one (1) gram of sugar per recommended serving. This is something that popular drinks manufacturers cannot beat.
Why The Shift To Healthier Drinks?
There is a general change for healthier drinks after countless studies have revealed that added sugar is the culprit of different metabolic diseases like obesity, diabetes, and fatty liver disease. As a result, various cities across the United States and the world have imposed higher taxes on sugary beverages to address the alarming issue. This new fiscal policy has caused financial strain to well-known beverage companies.
Companies have decided to invest in healthier brands to get around the taxes and reach the consumer looking for better products. When Dr. Pepper Snapple bought a small stake in Bai Brands the previous year, Bai became an allied brand for Dr. Pepper Snapple that distributes healthy drinks to its clients. This move was expected to earn $425 million in net sales by 2017. Dr. Pepper Snapple is expected to buy the entire company and close the deal in the first quarter of 2017 and is projected to earn more after.
The Future Of Healthy Beverages
The beverage industry is always evolving, and this is the reason why there are thousands of different drinks created for consumers to choose from. While the market is divided into confusing beverage categories, one thing remains certain, and that is people are shifting towards healthy drinks.
Consumers are aware of the dangers of pollution, toxic waste, and many other environmental concerns. In fact, 76 million baby boomers all over the United States have consumed unhealthy products in the past but are now finding ways to amend their ways and improve their vitality. It is the fear of mortality caused by chronic health issues that have pushed consumers to find healthier products to sustain their health and lifestyle.
Aside from protecting the health of individuals, the consumption of healthy beverages is also more sustainable for the economy, the agriculture community, and the environment. Many companies that have shifted to work directly with farmers to get the supplies that they need. Companies have also raised their awareness of opting for products that are organic.
The thing is that healthier drinks are here to stay and businesses like Dr. Pepper Snapple are embarking on this trend to gain more economic leverage. The future of healthy drinks is now. Building a brand experience with innovative ingredients is key to winning in today’s beverage market.
Inspired by fortune.com