Shaking Up the Sparkling Water Scene: Bubly Introduces Exciting Burst Brand Extension

Nearly ten years have passed since LaCroix, made by National Beverage Corp., sparked a trend for sparkling water among consumers. This led to a surge in investments by major beverage companies in the category. In 2018, PepsiCo introduced Bubly as its response to LaCroix. While many competitors struggled, Bubly managed to stay afloat. Now, it is looking to revitalize a sector that has lost some of its initial excitement.

On March 25, the brand will unveil a new range of products targeting consumers who find current sparkling water options either too lacking in sweetness compared to soda or just plain dull. Bubly Burst is the latest offering, containing zero added sugars and no more than 10 calories per serving, depending on the flavor. This line includes six different variants, such as peach mango, tropical punch, and triple berry, all packaged in tall, 16.9-ounce single-serve bottles made from recycled PET plastic.

The brand extension is launched with a fun ad campaign appearing on social media, digital platforms, TV, and outdoor spaces, bringing together what executives refer to as the Bubly family. The Burst and core sparkling water products are featured in lively and energetic creative content, making the product the main focus. The TV commercial was created by Agency ODD, with production duties handled by Direct Focus.

PepsiCo executives are excited about the potential of Bubly to drive significant growth, especially as more shoppers look for healthier options that still feel indulgent.

Todd Kaplan, the CMO of Pepsi's sparkling water division, believes that Bubly could become a billion-dollar brand if they focus on it properly. He sees Bubly Burst as a key tool to help expand the brand even further.

Kaplan played a key role in launching Bubly during his time overseeing marketing for PepsiCo's water portfolio. Bubly, expected to make $100 million in its first year, made its debut around the 2018 Oscars and later had a Super Bowl campaign with a playful nod to singer Michael Bublé. Kaplan later moved to Pepsi, taking on PepsiCo's sparkling water responsibilities in 2022. Today, Bubly is leading the way in sparkling water, as reported in Kantar's 2023 Brand Mind Share study.

Consumer preferences are evolving, with more individuals looking for beverages that are subtly sweetened. An internal analysis by the brand revealed that around 20 million consumers now prefer sweetened sparkling water options. This led to the creation of Burst, which includes 1% real fruit juice.

All in the family

According to Kaplan, the appeal of this product is not limited to a specific group of people. He mentioned that those interested in this product are not ready to completely switch from soda to sparkling water. This product serves as a small step towards that transition.

Kaplan believes that Bubly's success is due to its unique personality, setting it apart from other sparkling water brands that are seen as more traditional. Bubly's packaging stands out with vibrant colors and cheerful smiley face designs, aiming to evoke the lively feeling associated with its name.

This cheerful vibe is further highlighted through Bubly's social media presence, featuring playful scenarios where Bubly cans come to life in miniature settings. In a campaign launched in January, Bubly introduced a special button utilizing LTE technology to provide Bubly to those participating in Dry January, a month-long alcohol-free challenge.

Bubly Burst aims to establish a brand image centered around fun without completely overhauling their marketing strategies. The bottle caps feature playful phrases like “thirsty work,” while the bottles themselves are adorned with cheerful messages (for example, the watermelon lime flavor bottle has a speech bubble saying “your partner in lime”). The lineup also includes flavors like pineapple tangerine and cherry lemonade.

According to Kaplan, the visual identity remains consistent with the original Bubly brand. The goal was not to introduce a completely new brand or acquire one. Instead, Bubly Burst represents a more enhanced and vibrant version of the original Bubly concept.

Enhancing Innovation

PepsiCo has been stepping up its game by introducing new brands and revitalizing existing ones to appeal to discerning consumer demographics such as Gen Z. Recently, the company launched Starry, a lemon-lime beverage to replace the declining Sierra Mist. Starry even made its debut in a Super Bowl commercial in February, featuring the up-and-coming rapper Ice Spice. These initiatives are a direct outcome of PepsiCo's improved collaboration between its research and development, product, and marketing teams, as highlighted by Kaplan.

"When we introduced Bubly, it was a new experience for us at PepsiCo. We had to create and launch a brand from scratch, which was a challenge. But over time, we have improved and fine-tuned this skill," Kaplan shared.

A greater emphasis on innovation is now a priority as Coca-Cola, their main competitor, also introduces new products. This has reignited the ongoing competition known as the Cola Wars between the two companies. Recently, Coca-Cola unveiled Coca-Cola Spiced, a raspberry-flavored cola, marking their first permanent addition to the soda lineup in three years. Both Coke and Pepsi are now focusing more on marketing zero-sugar and healthier beverage options, aligning with the shift in consumer preferences away from full-sugar drinks. In this context, Bubly Burst has seamlessly integrated into their strategy.

“A lot of our growth is going to come from new spaces that are emerging in the beverage space, as well as going a bit deeper in the spaces where we do play,” said Kaplan.

Editor's P/S:

Bubly's latest move to revitalize the sparkling water sector with its new Bubly Burst line is a strategic response to evolving consumer preferences. The brand recognizes the growing demand for subtly sweetened sparkling water options, while also leveraging its established personality and vibrant marketing approach. By offering a product that appeals to those looking for a transition from soda to healthier beverages, Bubly aims to expand its reach and drive significant growth.

The article also highlights the ongoing innovation efforts at PepsiCo, fueled by improved collaboration between various teams. This emphasis on innovation is crucial in the face of competition from Coca-Cola, which recently introduced new products like Coca-Cola Spiced. The beverage industry is experiencing a shift towards zero-sugar and healthier options, and both Coke and Pepsi are adapting their strategies to meet these changing consumer demands. Bubly Burst is a testament to this evolving landscape, as it aligns with the growing preference for subtly sweetened sparkling water while staying true to the Bubly brand's core values of fun and indulgence.