PepsiCo Acquires Poppi, Strengthening Its Functional Beverage Portfolio
PepsiCo has acquired a majority stake in Poppi, an Austin-based prebiotic soda brand, as the beverage giant expands its portfolio to meet rising consumer demand for functional and health-conscious drinks.
Strategic Investment in the Functional Beverage Market
PepsiCo’s investment in Poppi represents a strategic move into the rapidly growing functional beverage segment. Poppi, known for its apple cider vinegar-infused sodas that promote gut health, has gained significant traction among health-conscious consumers. The acquisition follows PepsiCo’s initial investment in Poppi via the company’s venture arm, PepsiCo Ventures Group.
Poppi has seen impressive retail growth since launching in 2020, fueled by a rise in consumer interest in digestive health and clean-label beverages. The brand has successfully positioned itself as a low-sugar, better-for-you alternative in the carbonated soft drink space, a category increasingly disrupted by wellness-driven innovation.
Implications for the FMCG Industry
The acquisition signals a broader industry trend in which legacy beverage companies are diversifying their offerings to appeal to evolving consumer preferences. Functional beverages—products offering health benefits beyond basic nutrition—have surged in popularity, with gut health, immunity support, and natural ingredients driving purchasing decisions.
For PepsiCo, bringing Poppi into its portfolio strengthens its presence in the health-oriented beverage space, complementing other investments in brands like KeVita and Sodastream. This move also gives Poppi access to PepsiCo’s extensive distribution network, which could accelerate its expansion both in retail and direct-to-consumer channels.
What’s Next for Poppi?
With PepsiCo’s backing, Poppi is poised for further growth, potentially expanding beyond its current product lineup and reaching broader global markets. The brand’s success reflects a significant shift in consumer demand toward functional sodas, an area that has seen increased competition from both emerging startups and established players adapting to the trend.
For FMCG professionals, this acquisition underscores the importance of agility in responding to shifting consumer habits. As functional beverages continue to gain momentum, brands that can successfully blend taste, health benefits, and accessibility stand to gain a competitive edge.