PepsiCo to Acquire Prebiotic Soda Brand Poppi, Expanding Functional Beverage Portfolio
PepsiCo is taking a major step into the functional beverage market with its acquisition of Poppi, the rapidly growing prebiotic soda brand. The deal, announced this week, strengthens PepsiCo’s position in the better-for-you beverage segment as consumer demand for health-conscious alternatives continues to rise.
Strengthening PepsiCo’s Health-Focused Portfolio
Poppi, known for its apple cider vinegar-infused soft drinks, has gained traction among health-conscious consumers seeking digestive benefits without compromising on taste. The brand’s meteoric rise—fueled by strong digital marketing, influencer endorsements, and retail expansion—has positioned it as a challenger to traditional carbonated soft drinks.
By acquiring Poppi, PepsiCo is not only adding a functional soda to its growing roster but also reinforcing its investment in beverages that cater to shifting consumer preferences. The deal aligns with the company’s broader strategy of diversifying beyond traditional sodas and capitalizing on growth opportunities within the health and wellness category.
Meeting Demand for Functional Beverages
Functional beverages—drinks infused with health-boosting ingredients—are driving significant category growth. According to industry reports, the global functional beverage market is expected to expand at a compound annual growth rate (CAGR) of over 8% in the coming years. Poppi’s prebiotic formula taps into this trend, resonating particularly with Gen Z and millennial consumers prioritizing gut health and natural ingredients.
PepsiCo’s acquisition also provides Poppi with deeper distribution capabilities and marketing resources, accelerating brand expansion both in the U.S. and potentially international markets. With PepsiCo’s track record of scaling health-conscious brands, Poppi is well-positioned for continued growth.
Implications for the Broader Beverage Market
As demand for low-sugar, functional, and gut-friendly beverages rises, PepsiCo’s latest move signals increased competition in this space. Major beverage players are doubling down on innovation, acquiring emerging brands, and reformulating their existing offerings to align with changing consumer expectations.
This acquisition underscores how leading FMCG companies are shifting focus toward wellness-driven products, which could spur further consolidation in the functional beverage sector. With consumers increasingly looking for drinks that offer both