People are increasingly swapping sugary sodas for healthier alternatives, and big name soda brands like Coke and Pepsi are feeling it.
Enter Olipop.
It's the soda with a healthy twist. It has less calories and sugar than traditional brands with fresh, eye-popping packaging.
And, unlike established soda brands, the company experienced explosive growth in 2024, and was just valued at $1.85 billion!
Olipop isn't just competing with industry giants—they're rewriting the rules of the game.
And that right there, is a challenger brand.
You can likely name many more challengers that are keeping established brands on their toes. Think brands like Liquid Death, Oatly, Warby Parker, Dollar Shave Club, Casper Mattress, etc.
So, what is a challenger brand?
Challenger brands disrupt their industries by offering something fresh, innovative and customer-focused.
They stand out by offering innovative solutions to problems that established brands are not adequately addressing. Their goal is to gain market share by providing a better, more relevant alternative for consumers who feel underserved by the current options.
They target unmet customer needs, remove frustrations or fill gaps in the market.
Maybe they produce a delicious and sustainable milk alternative (Oatly), or create quality mattresses that cost less and streamline the mattress shopping experience (Casper).
Challenger brands do these things by focusing on:
Innovation: Unique products, services or business models that challenge the status quo.
Authenticity: Strong storytelling and transparent consumer relationships.
Agility: Quick pivots to meet market demands.
Targeted Marketing: Connecting deeply with their audiences.
CPG challenger brands
The consumer packaged goods (CPG) industry is packed with legacy brands that dominate store shelves. But challenger brands shake things up by:
Redefining Categories: Using new ingredients, sustainable packaging or fresh approaches.
Owning Their Story: Building loyal audiences through authenticity and transparency.
Mastering Digital Marketing: Engaging with consumers and meeting customers where they are, rather than relying solely on traditional advertising.
Focusing on Niche Markets: Winning over health-conscious, eco-friendly or value-driven shoppers.
A CPG challenger brand in action
Back to Olipop.
This CPG challenger brand is shaking up the soda game by ditching excess sugar and artificial ingredients in favor of prebiotics, fiber and gut-friendly goodness.
Instead of competing head-on with Coke and Pepsi, Olipop stands out with:
Better-for-You Ingredients: A healthier take on soda without sacrificing taste.
Distinct Branding: Eye-catching cans and a story that resonates with modern consumers.
Smart Marketing: Digital-first strategies, influencer partnerships and direct-to-consumer sales.
Community Building: Active engagement with fans through social media.
In fact, Olipop's success, along with other challenger brands like Poppi, prompted Coke to launch Simply Pop–their take on a prebiotic, better for you soda.
Why challenger brands matter
They keep industries fresh. Challenger brands push the big players to innovate and give consumers better, more sustainable options. Their bold ideas and agile marketing create exciting opportunities for brands and marketers alike.
Olipop and brands like it prove that challenger brands aren’t just competitors—they’re game-changers. They redefine entire categories and capture market share in unexpected ways.
As the market evolves, expect more challenger brands to keep shaking things up, creating new opportunities for marketers, retailers and consumers alike.
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