Why OLIPOP’s Next Innovation Should Be Inspired by Aguas Frescas

OLIPOP is a relatively new contender in the soda industry that has been shaking up the status quo with its healthy and delicious tonics. With prebiotics and less sugar, OLIPOP offers a great alternative for health-conscious consumers who want to enjoy a fizzy drink without the guilt of traditional sodas.

Although OLIPOP has roared into the U.S. market and is growing quickly, it can follow up on its successful Lemon-Lime flavor introduction and accelerate further growth by launching a line of “Aguas Frescas” inspired flavors.

An Agua Fresca or “fresh water” in Spanish, is a refreshing beverage that originated in Mexico and is made from natural ingredients by infusing fruits, seeds, cereals, or flowers with water and little to no sugar. Served chilled, Aguas Frescas can be found in homes, on the streets and at friends and family gatherings across Central American, the Caribbean Islands and regions in the United States with large Hispanic populations.

The origin and essence of Aguas Frescas and OLIPOP’s brand and mission are a natural fit:

• OLIPOP is a deliciously refreshing tonic that is crafted with prebiotics, botanicals and natural plant fiber to support the microbiome and benefit digestive health. 
• OLIPOP’s mission is to provide an affordable, delicious alternative to soda that delivers leading-edge health benefits to mainstream consumers and to find accessible solutions to bring the benefits of digestive health to as many consumers as possible.
• OLIPOP was created with the idea that diversity matters: in the food we eat, in our microbiome and in our communities. 
• The OLIPOP team is a group of diverse, community-minded individuals who are passionate about helping people from all walks of life make healthier decisions that will impact their overall wellness. 

 A Variety of Aguas Frescas Flavors to Choose From

Aguas Frescas flavors are as varied as Mexico’s vibrant culture. Different regions are known for their own Aguas Frescas flavors based on the available local bounty, offering OLIPOP many flavors and flavor combinations to consider in launching an innovative line of tonics inspired by Aguas Frescas.

We did some research and found that the following Aguas Frescas flavors are among the most popular:

• Horchata – a sweet, creamy beverage made with rice, cinnamon and vanilla.
• Jamaica – a tart, refreshing beverage made from hibiscus flowers.
• Tamarindo – a tangy, sweet beverage made from tamarind fruit.
• Limonada – a classic, tart and refreshing lemonade.
• Sandía – a sweet and refreshing watermelon juice.
• Piña – a sweet and tangy pineapple juice.
• Melón – a sweet and refreshing cantaloupe juice.
• Mango – a sweet and tropical mango juice.
• Fresa – a sweet and fruity beverage made with fresh strawberries

 A Huge and Growing Market That Needs OLIPOP

There is no better market opportunity for OLIPOP than the U.S. Hispanic market. This market is massive, growing and economically powerful, Hispanics are significantly more likely to consume traditional sugar-filled sodas and suffer from diabetes, making OLIPOP not only a delicious and culturally relevant new option, but also a health-conscious alternative.  

Here are some facts for OLIPOP to consider.

• U.S. Hispanic buying power is projected to reach $2.6 trillion by 2025; the population’s growth in buying power from 2020 will be nearly 50% more than that of white households, which hold the largest share of the market.¹
• The total U.S. Hispanic food and beverage market was $21 Billion in 2020. ²
• The U.S. permissible refreshment (Aguas Frescas) category is valued at $2 Billion. ³
• The total number of Hispanics in the U.S. in 2021 was 62.5 million. ⁴
• Hispanics are one of fastest-growing ethnic groups and accounted for 51.1% of the country’s growth from 2010-2020. ⁵
• Altogether, nearly six-in-ten U.S. Hispanics are Millennials or younger. ⁶
• 49.1% of Hispanic students consume sugary drinks daily compared to 33% of white students. ⁷
• In 2018, Hispanics were 1.3 times more likely than non-Hispanic whites to die from diabetes. ⁸
• Hispanic adults are 70 percent more likely than non-Hispanic white adults to be diagnosed with diabetes by a physician. ⁸
• In 2017, Hispanics were twice as likely to be hospitalized for treatment of end-stage renal disease related to diabetes, as compared to non-Hispanic whites. ⁸

Clearly, Coca-Cola’s subsidiary Minute Maid is aware of this opportunity and has grabbed first mover advantage by launching a line of Aguas Frescas in June 2022 (just in time for summer). Minutes Maid’s Aguas Frescas, which include Strawberry, Mango and Hibiscus flavors,  have opened the door to a new category that OLIPOP can capitalize on by focusing on its better-for-you ingredients.  

Specifically, Minute Maid’s Aguas Frescas contain 10 grams of sugar from high fructose corn syrup per 8 ounces, while OLIPOP’s current flavors contain 2-5 grams of sugar derived from OLISMART (OLIPOP’s blend of 7 unique botanicals, plant fibers, and prebiotics, each hand-picked for their distinct biome-supporting benefits) per 12 ounces.

One barrier that the brand will face is price as OLIPOP sells for $2.49 per 12 oz can at my local Vons supermarket vs. $1.79 per 16 oz can of Minute Maid Aguas Frescas.  Communication strategies to highlight the unique, good-for-you benefits of OLIPOP and consumer incentives will be key to address the price difference between OLIPOP and other competitors such as Minute Maid.

Launching Aguas Frescas inspired flavors is a smart move for OLIPOP to drive incremental growth, open more points of distribution and expand its brand and appeal to a wider consumer base. By offering a refreshing, healthy and culturally relevant line of Aguas Frescas inspired flavors, OLIPOP can continue to establish itself as a superior alternative to traditional sodas.

Interested in talking to us about how we can help your brand grow? 

Set up a meeting with me here and let’s talk it over while enjoying a refreshing OLIPOP.

Sources:

1 Ren, Jingqiu (2022, Oct 6). Hispanic consumers drive US population and spending growth. Insider Intelligence. 

2 Statista. (2020, November 26). Hispanics: market size of foods and beverages in the U.S. 2015-2020. 

3 Editorial Staff @portada_online. (2022, December 13). Minute Maid Marketing: The Big Bet on the Aguas Frescas Category. 

4 Krogstad, J. M., Passel, J. S., & Noe-Bustamante, L. (2022, September 23). Key facts about U.S. Latinos for National Hispanic Heritage Month. Pew Research Center. 

5 Gamboa, S. (2021, August 13). New census data expected to show America is becoming more diverse. NBC News. 

6 Patten, E. (2020, May 30). The Nation’s Latino Population Is Defined by Its Youth. Pew Research Center’s Hispanic Trends Project. 

7 Boehm, R., Stowers, K. C., Schneider, G., & Chriqui, J. F. (2021a). Race, Ethnicity, and Neighborhood Food Environment Are Associated with Adolescent Sugary Drink Consumption During a 5-Year Community Campaign. Journal of Racial and Ethnic Health Disparities, 9(4), 1335–1346.

8 HHS – The Office of Minority Health. (n.d.). Diabetes and Hispanic Americans.