PepsiCo Acquires Poppi in $2 Billion Deal, Expanding Functional Beverage Portfolio
PepsiCo has acquired prebiotic soda brand Poppi in a deal reportedly valued at $2 billion, marking a significant move in the functional beverage market. This acquisition underscores the growing consumer demand for gut-health-focused drinks and PepsiCo’s commitment to diversifying its portfolio beyond traditional sodas.
Poppi’s Rapid Rise in the Functional Beverage Space
Founded by Allison and Stephen Ellsworth, Poppi gained traction with its apple cider vinegar-based sodas, designed to support gut health while offering a flavor-forward drinking experience. The brand leveraged influencer marketing, strategic retail expansion, and eye-catching branding to capture market share in the competitive better-for-you beverage category.
Poppi’s journey included a successful appearance on Shark Tank in 2018, where it secured early investment. Further growth was fueled by celebrity backers such as NBA star Russell Westbrook and musician 24kGoldn, helping amplify brand visibility among younger consumers. Before PepsiCo’s acquisition, Poppi had already gained a strong presence in national retailers, including Whole Foods, Target, and Walmart.
PepsiCo Strengthens Its Position in Functional Beverages
The acquisition aligns with PepsiCo’s strategy to expand in health-conscious beverage categories, following previous investments in brands like Bubly and Lifewtr. Functional drinks have seen increased consumer interest, with prebiotic and probiotic beverages growing as consumers seek alternatives to traditional sodas.
PepsiCo’s move also comes as rivals, including Coca-Cola, explore the functional and wellness space. By integrating Poppi into its portfolio, PepsiCo can leverage its extensive distribution network to accelerate the brand’s growth and capture market opportunities in the health-focused beverage segment.
Investor Payoff and Market Implications
For Poppi’s early investors, including Westbrook and 24kGoldn, the acquisition represents a lucrative exit. The deal highlights the ability of celebrity-backed brands to scale quickly and attract major buyouts, a trend increasingly evident in the FMCG space.
As functional beverages continue to gain traction, major players like PepsiCo are likely to seek further acquisitions in the space. With consumer preferences shifting toward health-oriented products, Poppi’s