For decades, Coca-Cola and Pepsico dominated the beverage market because they had the top-selling sodas. Consumers wanted soda because that was pretty much all that was sold in ready-to-drink (RTD) form in convenience stores.
That began to change a little in the 1990s, when brands like Snapple Iced Tea expanded the RTD market. That paved the way for energy drinks, seltzers, coffee, and more recently, healthier takes on sodas, to explode in recent years.
Coca-Cola and PepsiCo still dominate the market, but they have a lot more competitors that have gained meaningful market shares.
U.S. soda market share (2025)
- Coca-Cola: Maintains its position as the leading soda brand with a market share of 19.2%.
- Dr Pepper: Has surpassed Pepsi to become the second-most-popular soda in the U.S., holding a market share of 8.7%.
- Sprite: Coca-Cola’s citrus-flavored soda, Sprite, holds a market share of 8.03%, surpassing Pepsi.
- Pepsi: Once the second-largest soda brand, Pepsi now holds a market share of 7.97%, placing it fourth behind Dr Pepper and Sprite.
- Diet Coke: Continues to be a significant player, with a market share of 8.6%, slightly ahead of Pepsi.
Source: Golden Eagle Distributors
Image source: Pixabay
New beverage, soda categories have emerged
Energy drinks and sports drinks fall under the “functional drinks” category. This is a broad category that also includes various “better-for-you” soda brands like Olli Pop and Ben Stiller’s new line of Stiller sodas, as well as kombucha, coconut water, and more.
The functional drinks market is huge:
- Energy Drinks: Approximately $16.0 billion, accounting for about one-third of the functional beverage market.
- Sports Drinks: Around $12.2 billion, following closely behind energy drinks in the functional beverage category.
Source: Glanbia Nutritionals
Kombucha Town has been an emerging player in the functional beverage space. The company is one of a handful of national players trying to make kombucha a more mainstream drink.
To do that, the company has to explain what kombucha is and how it’s made. It does that on its website.
Kombucha is a refreshing, invigorating fermented tea beverage. It’s created by millions of microorganisms coming together to form a symbiotic colony of bacteria and yeast (the SCOBY!).
Kombucha is made by adding this SCOBY to sweetened tea. The culture feeds on the sugars during fermentation, producing alcohol and amino acids. This fascinating process is the reason kombucha has many health benefits.
The company claims that kombucha is good for you.
“These good bacteria help your digestion. The amino acids help to detoxify your liver and other organs. Antioxidants protect your body and support your immune system. All this adds up to a much healthier gut, boosted metabolism, and a happier, more balanced mood,” it shared.
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Those claims are at least somewhat supported by medical research.
“Kombucha may provide similar benefits to green tea and protect against conditions like diabetes and cancer. It also contains probiotics, which can benefit your gut microbiome,” Healthline reported.
Kombucha Town files Chapter 11 bankruptcy
“Chris McCoy, whose drink brand Kombucha Town achieved national distribution before the pandemic, has filed for Chapter 11 bankruptcy in an effort to ‘create new opportunities’ for the company,” Cascadia Daily reported.
“Debts were strangling the company,” McCoy said.
He resisted filing for bankruptcy, but eventually gave in.
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“I knew about bankruptcy, but ethically I felt so responsible to everyone who helped build the business,” McCoy said.
He ultimately filed in an attempt to save the company and reorganize its $2.6 million in debt.
“I deserve the opportunity for the forgiveness bankruptcy offers,” he said. “I’m doing my best to make sure it’s a great comeback story.”
Real McCoy Tea Company (Kombucha Town) Chapter 11 bankruptcy overview
- Case Number: 2:25-bk-12110
- Court: U.S. Bankruptcy Court, Western District of Washington
- Chapter: 11 (Subchapter V)
- Filed: July 30, 2025
- Judge: Hon. Christopher M. Alston
- Assets: $100K–$500K
- Liabilities: $1M–$10M
Source: PacerMonitor
Kombucha Town: company timeline
- 2011: Founded by Chris McCoy in Bellingham, Washington, inspired by his mother’s early-onset Alzheimer’s diagnosis.
- 2014: Pioneered the use of environmentally friendly aluminum cans for live kombucha.
- 2016: Expanded operations and began distribution beyond Bellingham.
- 2020: Launched a community-owned business model through equity crowdfunding.
- 2022: Introduced “Biome Aid,” a proprietary tea formula and fermentation process for improved gut health.
- 2025: Filed for Chapter 11 bankruptcy
Source: KombuchaTown
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