In a significant move that underscores the growing demand for healthier beverage alternatives, PepsiCo has announced its acquisition of Poppi, a leading prebiotic soda brand, for $1.95 billion. This deal marks a major milestone for Poppi, which started as a small kitchen experiment and rapidly grew into the No. 1 healthy soda on Amazon.
Poppi’s Rise to Success
Founded by husband and wife duo Stephen and Allison Ellsworth, Poppi began as a homemade beverage sold at farmers’ markets. By blending fruit juices, apple cider vinegar, prebiotics, and sparkling water, the brand offered a healthier alternative to traditional soda. The company’s appearance on Shark Tank helped secure funding and distribution, leading to a rebranding from Mother Beverage to Poppi. With a range of flavors including cherry soda, root beer, and cream cola, the brand quickly became a favorite among consumers seeking gut-friendly, low-sugar options.
In just a few years, Poppi grew into one of the fastest-expanding beverage brands in the U.S., generating over $100 million in revenue and landing on the shelves of over 120 retailers. Its success highlights the increasing consumer preference for functional and health-conscious beverages.
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PepsiCo’s Strategic Acquisition
PepsiCo’s decision to acquire Poppi is part of a broader strategy to adapt to evolving consumer trends. With the functional beverages market reaching $134 billion in 2024 and projected to hit $231 billion by 2033, PepsiCo aims to stay ahead of the curve. The acquisition reflects the company’s commitment to expanding its portfolio with healthier, better-for-you products.
“We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers,” said Ramon Laguarta, Chairman and CEO of PepsiCo.
The Battle for Healthier Soda Dominance
PepsiCo’s move comes at a time when its rival, Coca-Cola, is also making aggressive strides into the healthier soda market. Coca-Cola recently launched Simply Pop, a direct competitor to Poppi, while prebiotic soda brand Olipop raised $50 million in Series C funding, valuing it at nearly $2 billion. These industry moves reflect a significant shift, with major players recognizing the need to offer healthier alternatives to sugary sodas.
A New Era for the Soda Industry
The Poppi acquisition is more than just a business deal—it signifies a broader industry transformation. As consumers become increasingly health-conscious, beverage giants like PepsiCo and Coca-Cola are being forced to innovate. The rising popularity of functional sodas, kombuchas, and other wellness beverages suggests that health-focused drinks are no longer a niche trend but a permanent fixture in the market.
PepsiCo’s acquisition of Poppi positions the company to capitalize on this shift, providing consumers with more gut-friendly, low-sugar options while strengthening its foothold in the functional beverage segment.
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