PepsiCo has boldly moved in the beverage industry by acquiring Poppi, a fast-growing prebiotic soda brand, for a whopping $1.95 billion. This strategic acquisition reinforces PepsiCo’s commitment to expanding its portfolio with health-conscious beverages, aligning with the increasing consumer demand for functional drinks that offer added health benefits.
From Shark Tank to Billion-Dollar Success
Founded in 2018 by Allison and Stephen Ellsworth, Poppi started as a simple idea and quickly turned into a consumer-favorite brand. The company gained significant traction after a successful pitch on Shark Tank, securing an investment that helped propel its growth. Known for its innovative blend of prebiotics, apple cider vinegar, and fruit juice, Poppi positioned itself as a refreshing and healthier alternative to traditional sodas.
PepsiCo’s Growing Interest in Functional Beverages
PepsiCo Buys Brand Poppi is part of a larger strategy to tap into the booming functional beverage market. This move follows its recent purchase of Siete Foods, further demonstrating its focus on diversifying its offerings with health-oriented brands. By integrating Poppi into its vast distribution network, PepsiCo aims to expand the brand’s reach and make prebiotic sodas more accessible to a wider audience.
Legal Hurdles and Market Expansion
Despite Poppi’s impressive success, the brand has faced challenges. In early 2024, it settled an $8.9 million lawsuit regarding its health claims, leading to the removal of the term “gut health” from its packaging. However, with PepsiCo’s financial backing and legal expertise, Poppi is well-positioned to navigate these challenges while continuing to grow.
What This Means for the Beverage Industry
This acquisition underscores a broader industry trend where major beverage companies are investing in products that prioritize health benefits. With PepsiCo’s extensive resources, Poppi is set to become a mainstream player, bringing functional sodas to an even larger audience. As consumers increasingly seek healthier beverage options, this deal marks another step toward the future of the soda industry.
With this acquisition, PepsiCo is not just buying a brand—it’s investing in the future of functional beverages. The question now is: What’s next in the evolution of the soda industry?
PepsiCo Official Announcement: https://www.pepsico.com/our-stories/press-release/pepsico-to-acquire-poppi03172025