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Retail Brew // Morning Brew // Update
Pepsi’s new prebiotic cola.

Let’s start the week by acknowledging that not everyone hates the houseflies that prevail this time of year. Take Nike, which will soon be introducing a new limited version of its Air Force 1 sneakers with a bunch of very realistic-looking houseflies printed on them. Sounds odd, perhaps, but there’s no denying that they look fly.

In today’s edition:

—Erin Cabrey, Jennimai Nguyen, Alex Vuocolo

STORES

Pepsi Prebiotic Cola

PepsiCo

With the buzz around healthy sodas far from fizzling, Pepsi is doubling down on the emerging segment just months after acquiring one of its pioneers, Poppi, by launching a new innovation: Pepsi Prebiotic Cola.

The product is “one of the largest new innovations in the cola category,” Mark Kirkham, CMO of PepsiCo Beverages US, told Retail Brew. Containing 5 grams of cane sugar, 30 calories, and 3 grams of prebiotic fiber, the new soda is aimed at giving consumers more soda choices, he said, as Pepsi tries to meet demand for more healthy options. It’ll be sold first online in Original Cola and Cherry Vanilla flavors for Black Friday and Cyber Monday, followed by a retail debut in February, priced at a premium to traditional Pepsi, Kirkham said.

Poppi, whose acquisition was completed in May, also offers Classic Cola and Cherry Cola flavors with a nearly identical nutritional profile, but Kirkham sees the two as complementary, selling in two separate soda segments that reach different consumer sets.

Kirkham broke down the new product, and how it fits into its portfolio alongside Poppi and aligns with Pepsi’s larger beverage innovation strategy.

Keep reading here.—EC

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MARKETING

Collage of Bratz figures, a Hot Wheels t-shirt, and a Labubu doll.

Morning Brew, Photos: Courtesy of vendors

When Labubu made it big in America this summer, it wasn’t just because it caught on with kids.

The fuzzy little demon toys, made by Chinese company Pop Mart, also became the hottest accessory for adults, prominently displayed on designer handbags, showed off on TikTok, and spotted on many a favorite celeb. That cultural pizzazz has helped more than double the company’s revenue, according to the Wall Street Journal.

Pop Mart isn’t the first to tap into the American “kidult” audience, and it’s not likely to be the last. Brands like Barbie and Hot Wheels from toy giant Mattel have long catered to an adult audience of toy appreciators and nostalgia-seekers, and other brands are jumping in.

Keep reading here on Marketing Brew.—JN

RETAIL

Stack of Amazon Prime delivery boxes

Nurphoto/Getty Images

The week is starting off with a big policy change from a major retailer. Target is ending its “Price Match Guarantee” on Monday, meaning customers can no longer request price matching with products from rivals such as Walmart and Amazon. The change comes as many retailers strive, with varying degrees of success, to keep prices down in the face of President Donald Trump’s tariff policy.

Here’s what else is going on in retail:

In earnings: Q2 earnings season is heating up with results from both Apple and Amazon on Thursday. Analysts are expecting Amazon to turn in a strong quarter, with retail, advertising, and cloud services all growing. They are also anticipating the company to emphasise efficiency gain in its logistics. The e-commerce platform notably got some negative press from a Wall Street Journal report showing that the company hiked prices on 1,200 essential items despite its previously stated commitment to keeping prices low.

Keep reading here.—AV

Together With Yottaa

SWAPPING SKUS

Today’s top retail reads.

EU and me both: The US reached a tariff deal with the European Union that will impose a 15% tariff on most imports from the EU. (Bloomberg)

The lapse of luxury: Some luxury brands are grappling with why sales are down. (the Wall Street Journal)

Die by the code: With “quishing” scams, consumers are being warned about fraudulent QR codes. (CNBC)

Feed their cravings: The key to keeping your customers happy is knowing what they want. Toast can help. They created a data hub full of insights on what’s hot (and what’s not) in the food industry. Dig in.*

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