Poppi is a well-known prebiotic soda brand that PepsiCo is purchasing for $1.65 billion.
The move is part of PepsiCo’s continued transition into the “better for you” sector as consumers avoid unhealthy snacks and sugar-filled beverages.
PepsiCo purchased the other half of the Sabra hummus brand it did not own late last year, while the corporation paid $1.2 billion in January to acquire Siete Foods, a manufacturer of gluten-free chips.
The CEO of PepsiCo, Ramon Laguarta, stated in a statement on Monday, March 17, 2025, that the company has been expanding its food and beverage portfolio for many years. This includes diversifying our brands into new markets and making strategic, disciplined acquisitions that allow us to provide our customers with more positive options.
“Consumers are more interested than ever in affordable, delicious options that suit their lifestyles and satisfy their growing interest in fitness and health. To meet these needs, Poppi is a great complement to our portfolio transformation efforts,” he added.
Poppi may be able to outperform rival Olipop by utilising PepsiCo’s significant distribution contracts and marketing expenditure, but both companies are still relatively new and have space to improve in terms of sales and recognition.
Despite their increasing popularity, only roughly 5% of people routinely consume prebiotic sodas, according to market research firm Zappi.
“The disconnect between brand awareness and functional understanding is the challenge for these brands,” Zappi’s chief marketing officer, Nataly Kelly, told CNN. “Although the majority of consumers are aware of prebiotic sodas, only roughly one-third fully comprehend their nature and mechanism of action.”
PepsiCo did not specify when the sale would conclude, and regulatory approval is a prerequisite for the transaction.
Poppi’s development
Since its 2018 appearance on “Shark Tank,” when it was still known as Mother Beverage, Poppi has gained a devoted following. Although the health benefits of Poppi’s claims are questionable, the company markets their sodas as being full of prebiotics and apple cider vinegar, which it says can help with gut health.
Coca-Cola, Pepsi’s rival, followed suit this month with the introduction of its brand of prebiotic sodas, Simply Pop. In recent weeks, several comparable drinks, such as Bloom Nutrition and Spindrift Soda, have also hit the market.
“For big soda companies like PepsiCo and Coke, the gut soda wait-and-see phase is over. Beverage Digest president and editor Duane Stanford told CNN, “They’ve seen enough to jump in.”
PepsiCo has cancelled its intentions to introduce a prebiotic soda brand based on its Soulboost drinks.
However, there has been some turmoil associated with Poppi’s ascent to fame. Social media users criticised the soda firm for giving influencers full-sized Poppi vending machines over last month’s Super Bowl weekend, calling it out of touch.
The market for healthy soda doesn’t appear to be slowing down despite the uproar.
The market for non-alcoholic drinks that promote extra health advantages is known as “functional beverages,” and it is expanding more quickly than the market for traditional sodas. According to Coca-Cola’s research, the category is expected to earn $2 billion in sales by 2029.
After a $50 million funding round, rival Olipop was valued at $1.85 billion last month. The company also reported that it made a profit for the first time since its 2018 launch, doubling its sales to $400 million. Poppi has not revealed its valuation to the public.
Stanford stated, “We’ll see whose strategy works best—buy like PepsiCo or build with an existing brand like Coke. A lot of that depends on whether this gut soda segment is a mirage or something that will last for a long time.”
