PepsiCo Acquires Prebiotic Soda Brand Poppi in $1.6 Billion Deal
PepsiCo has finalized a deal to acquire prebiotic soda brand Poppi for over $1.6 billion, further expanding its portfolio in the growing functional beverage market. The acquisition underscores the rising consumer demand for gut-health-focused drinks and PepsiCo’s continued push into better-for-you beverage offerings.
Strategic Expansion in Functional Beverages
Poppi has rapidly gained traction in the prebiotic beverage category, capitalizing on consumer interest in digestive health and functional ingredients. The brand, which infuses beverages with apple cider vinegar for its purported gut health benefits, has seen significant growth, particularly among younger consumers looking for healthier soda alternatives.
PepsiCo, which had previously invested in Poppi through its venture arm, saw an opportunity to fully integrate the brand as functional drinks continue to outpace traditional soda sales. Over the past year, Poppi has expanded its retail presence, securing shelf space in major retailers and driving strong sales growth.
Rising Consumer Interest in Gut Health
The deal reflects the broader industry shift toward functional beverages, with prebiotic and probiotic drinks witnessing surging sales. Consumers increasingly prioritize health-oriented products, and PepsiCo’s acquisition aligns with its strategy to diversify beyond sugary sodas and into wellness-driven categories.
This move follows similar investments by major beverage players eyeing the better-for-you segment. Functional ingredients like prebiotics, adaptogens, and immune-boosting compounds have gained mainstream popularity among consumers seeking healthier alternatives to traditional soft drinks.
Competitive Landscape and Future Growth
PepsiCo’s acquisition places it in direct competition with other beverage giants investing in functional drinks, including Coca-Cola, which has expanded into gut-health and wellness-focused products in recent years. With Poppi now under its umbrella, PepsiCo is better positioned to cater to shifting consumer preferences and drive innovation in the segment.
As functional beverages continue to reshape the non-alcoholic drink market, PepsiCo’s latest acquisition signals a commitment to evolving alongside these trends. Industry experts anticipate further investments in similar brands as major players compete for leadership in the rapidly expanding health-focused beverage space.