The Rise of Functional Beverages: Hip Pop Leads the Charge

A Niche No More: The Growth of Health-Conscious Consumerism

In recent years, the health products industry has evolved from a niche market to a mainstream phenomenon, with consumers increasingly seeking out products that align with their health and wellness goals. In the UK, this shift has been exemplified by the remarkable rise of Hip Pop, a brand that has become the fastest-growing carbonated soft drinks brand in the country. Hip Pop specializes in gut-friendly, low-sugar sodas and kombuchas, and it is at the forefront of the burgeoning market for “functional drinks,” a category that has grown ten times faster than the soft drinks market as a whole over the past year. With ambitions to sell up to 10 million cans this year, Hip Pop is redefining what it means to offer a healthy, tasty, and refreshing beverage.

From Kitchen Table to Market Leader: The Origins of Hip Pop

Hip Pop’s journey began humbly in 2018 as a kitchen-table business founded by Emma Thackray and Kenny Goodman, two friends with a shared vision of creating health-conscious drinks. Initially selling their original kombucha product at farmers’ markets across the North-West of England, the duo admits they were unsure of how to scale their business or build a compelling brand. Goodman reflects on the early days, saying, “The first chapter of our book would be entitled ‘How Not to Start a Business.’” Despite the challenges, their commitment to creating natural, high-quality products laid the foundation for what would become a market leader.

Turning Points: Mentorship and Rebranding

A pivotal moment for Hip Pop came when the founders met Juliet Barratt, co-founder of the successful sports nutrition company Grenade, which was sold to Mondelez for approximately $275 million. Barratt’s advice to find a stand-out name led to the rebranding of the company from “Booch & Brew” to Hip Pop in 2021. This change marked a turning point, helping the brand gain recognition and establish a stronger connection with its target audience. Additionally, Hip Pop recruited Graham Beale, Grenade’s former head of operations, to serve as CEO, allowing Thackray and Goodman to focus on product development, company culture, and strategic partnerships.

Strategic Partnerships: Expanding Reach and Expertise

Hip Pop’s success has been further bolstered by key partnerships, including its inclusion in Sainsbury’s Future Brands incubator programme. This initiative provided the company with invaluable support and advice on working with large retailers, as well as the opportunity to sell its products in Sainsbury’s stores nationwide. Today, Hip Pop’s products are stocked in a wide range of retailers, such as M&S, Ocado, Co-op, Waitrose, Fortnum & Mason, and Booths. The brand has also expanded into the food service sector, collaborating with partners like Total Fitness and Zizzi, and has begun exporting to Belgium and the Netherlands. A thriving direct-to-consumer business further complements its revenue streams.

The Product Proposition: Natural Ingredients and Great Taste

At the heart of Hip Pop’s success is its commitment to creating products that cater to consumers’ growing demand for healthy, natural, and great-tasting beverages. Thackray explains, “Millions of people are looking for support with digestive health issues, but they also want a product that tastes good—they want something refreshing and light.” Hip Pop’s range of sodas and kombuchas is made with 100% natural ingredients, is vegan-friendly, and low in calories. The recent rebrand, featuring an updated design for its cans and a new strapline, “Get Real,” aims to highlight the brand’s focus on authenticity and transparency in its ingredients. Goodman adds, “People in the Western world have become addicted to sweetness, and that has seen artificial products become ever sweeter. Our drinks still taste fantastic but they’re genuinely low-sugar and we haven’t replaced that with artificial sweeteners.”

The Future of Functional Drinks: Hip Pop’s Vision and Ambition

As Hip Pop continues to grow, it is well-positioned to become a market-leading brand in the functional drinks category. The company is encouraged by the growing interest in gut health and wellness, even from larger consumer goods companies like Coca-Cola, which recently launched Simply Pop, its first product in the gut-health sector. Goodman comments, “We’re trying to build a category here. We’re genuinely delighted to see Coca-Cola’s launch because it underlines the potential for this category.” With the support of investors such as Edward Ferris, Paul Brown, and Phil Trowler, Hip Pop is poised to expand its reach and solidify its position as a pioneer in the functional drinks market. As the brand looks to the future, its focus remains on creating innovative, health-conscious products that resonate with consumers and set a new standard in the beverage industry.