Because the choice between a healthy water and a not-so-healthy soda can influence consumer decisions, this ruling has the power to “hurt the brand badly” if the company doesn’t reframe its product correctly, brand strategist Reilly Newman tells Fortune.
If the customer is “feeling healthy and aspirational, they may opt for mineral water,” he says. “However, now the brand is out in the same category as the sugary sodas. This eliminates a lot of the benefits that Perrier had as a brand as well as their uniqueness in the market.”
“Luckily for [Perrier], we have had a massive rise of healthy sodas in the last three years, so that should help ease the blow,” Newman says. However, “this will definitely impact the purchase decisions because when it comes to beverages it’s not a matter of Coke versus Pepsi, but a battle for thirst. This means a consumer is much more willing to hop categories to satisfy their need.”
