PepsiCo, Inc. announced today its acquisition of the prebiotic soda brand Poppi for approximately $1.95 billion, marking a strategic move to expand its portfolio of health-focused products. This significant transaction, finalized on March 17, 2025, positions PepsiCo to cater to the increasing consumer demand for healthier beverage options.
Established by Allison and Stephen Ellsworth, Poppi has quickly gained traction since its debut on the reality TV show "Shark Tank," backed by guest investor Rohan Oza of CAVU Consumer Partners. Poppi's lineup of sodas, which creatively combines prebiotics such as agave inulin and cassava root fiber, fruit juice, and apple cider vinegar, aims to offer low-calorie alternatives to traditional sodas, ensuring each serving contains no more than five grams of sugars.
“We've been evolutionizing our food and beverage portfolio over many years, including by innovatively integrating new brands and engaging strategically with acquisitions to present more positive choices to our consumers,” said Ramon Laguarta, the Chairman and CEO of PepsiCo. “More than ever, customers are seeking convenient and tasty options aligning with their health-conscious lifestyles.”
The acquisition price includes $300 million anticipated cash tax benefits for PepsiCo, effectively lowering the net price to approximately $1.65 billion—a notable financial strategy amid increasing competition from rival brands. Poppi has seen nearly 122% growth year-over-year, with the demand reflecting trends seen across the functional beverage market, which reached $134 billion globally and is projected to double by 2033.
Poppi’s sales strategy has effectively leveraged its grassroots beginnings where the brand was initially launched as home-brewed sodas, showcasing local values with vibrant, colorful packaging intended to resonate with younger audiences searching for nostalgic yet health-centric beverage options. “When I created Poppi, it was fueled by the aspiration to curate what we believed was a superior soda,” expressed Allison Ellsworth. “I never imagined how many people we could reach through hard work to craft functional soda.”
The recent boom of prebiotic sodas aligns perfectly with the consumer shift toward wellness—especially with competitors such as The Coca-Cola Company announcing the launch of its own prebiotic option, Simply Pop, alongside brands like Olipop reeling in significant investments. The beverage market has witnessed brands increasingly courting younger demographics enticed by the gut-health benefits offered by these alternatives.
The branding and marketing strategy behind Poppi has yielded remarkable public engagement. The company embraces modern marketing techniques, including influencer partnerships and vibrant public engagements, which significantly help the brand maintain presence and relevance. It has even secured two consecutive spots during the Super Bowl commercial—signifying Poppi's leap from a small kitchen-born endeavor to mainstream recognition.
The acquisition of Poppi stands as both affirmation and signal: gut-friendly sodas are likely here to stay, reshaping the traditional soft drink market. With increasing numbers of consumers opting for drinks with lower sugar levels and functional benefits, legacy brands cannot dismiss this trend any longer.
Despite being positioned as competitors for decades, major players like PepsiCo and Coca-Cola are now embracing this transformation to stay viable within the rapidly-evolving consumer beverage culture, making investments necessary to retain market share. “We believe Poppi is the soda for generations,” concluded Ellsworth. “We’re grateful for the chance to grow and innovate within this new chapter with PepsiCo by our side.”
This monumental acquisition doesn't just boost PepsiCo's market confrontation; it signifies the emergence of new beverage dynamics, where health-centric products will increasingly rival traditional options—ultimately urging legacy brands to dramatically innovate or risk being left behind. Poppi's success demonstrates how consumer preferences have shifted and how the beverage industry must continue to adapt to these changes.
