| Key Points: – PepsiCo has acquired prebiotic soda brand Poppi for $1.95 billion, strengthening its presence in the functional beverage market. – The deal aligns with growing consumer demand for drinks that support gut health and overall well-being. – The brand, which gained traction after a successful pitch on Shark Tank, will leverage PepsiCo’s resources to expand distribution and innovation. |
PepsiCo has announced its acquisition of prebiotic soda brand Poppi for $1.95 billion, marking a significant move into the growing functional beverage category. The transaction includes $300 million in anticipated cash benefits, effectively bringing the net purchase price to $1.65 billion. This deal reinforces PepsiCo’s commitment to diversifying its beverage portfolio to align with shifting consumer preferences toward health-conscious options.
“More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,” said PepsiCo Chairman and CEO Ramon Laguarta. The acquisition reflects PepsiCo’s strategy of investing in emerging brands that tap into wellness trends while complementing its existing product lineup.
Poppi, based in Austin, Texas, was founded by Allison Ellsworth, who originally developed the beverage in her kitchen in 2015. Seeking a healthier alternative to traditional sodas, Ellsworth combined fruit juices with apple cider vinegar, sparkling water, and prebiotics to create a gut-friendly drink. After selling Poppi at farmers’ markets, Ellsworth and her husband gained national attention in 2018 by pitching the brand—then called Mother Beverage—on Shark Tank. Investor Rohan Oza saw potential in the product, took a stake in the company, and led its rebranding into Poppi, with its now-iconic bright, fruit-themed packaging.
Ellsworth expressed excitement about the partnership, stating, “We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation.” With PepsiCo’s extensive distribution network and marketing resources, Poppi is expected to expand its reach beyond its current stronghold in health-focused consumer markets.
Oza, co-founder of CAVU Consumer Partners—which has invested in beverage brands like Oatly and Bai—echoed this enthusiasm. “We’re beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy Poppi.”
The functional beverage market has seen rapid growth as consumers prioritize health benefits in their drink choices. Poppi, with its focus on gut health through prebiotics, has positioned itself at the forefront of this trend. However, the brand has not been without challenges. In 2023, Poppi faced a class-action lawsuit from a consumer alleging that its products do not deliver on their advertised gut health benefits. While the lawsuit remains unresolved, the acquisition by PepsiCo signals confidence in the brand’s long-term potential.
For PepsiCo, this move follows a pattern of acquiring fast-growing health-oriented beverage brands, including Kevita and SodaStream. As competition in the functional drink space intensifies, integrating Poppi into its portfolio will allow PepsiCo to capture a larger share of the evolving market while reinforcing its commitment to innovation in health-conscious beverages.