PepsiCo Acquires Poppi, Expanding Its Functional Beverage Portfolio
PepsiCo has acquired a majority stake in Poppi, a fast-growing prebiotic soda brand, as part of its strategy to expand into health-focused beverage categories. The move strengthens PepsiCo’s presence in the functional drinks segment, a fast-emerging market that caters to consumers seeking beverages with added health benefits.
Building on an Early Investment
PepsiCo first invested in Poppi through its venture arm, PepsiCo Ventures Group, back in 2021. The acquisition signals the company’s confidence in Poppi’s continued growth and underscores its commitment to diversifying its portfolio beyond traditional carbonated soft drinks. With demand increasing for gut-health-focused products, PepsiCo is positioning itself at the forefront of this trend.
Rising Consumer Interest in Functional Beverages
Functional beverages—those offering specific health benefits beyond basic hydration—have been gaining significant traction. According to industry reports, the global functional beverage market is expected to reach $200 billion by 2030, driven by consumer interest in products that support immunity, digestion, and overall well-being.
Poppi has capitalized on this shift, positioning itself as a better-for-you alternative to traditional sodas. The brand’s prebiotic formulations include apple cider vinegar, known for its gut health benefits, and appeal to a demographic looking for both taste and wellness. Poppi’s rapid rise, fueled in part by social media marketing and strong direct-to-consumer sales, has made it one of the standout brands in the functional beverage space.
Strategic Portfolio Expansion for PepsiCo
PepsiCo has been steadily increasing its investments in health-conscious brands. The company previously acquired SodaStream and has introduced reformulated versions of core products with reduced sugar and added functional ingredients.
With Poppi in its portfolio, PepsiCo gains a foothold in the thriving gut-health beverage category, allowing it to compete with rivals such as Olipop and Health-Ade. The investment also aligns with PepsiCo’s broader sustainability and health initiatives, as consumers continue to seek out more natural, beneficial ingredients.
What This Means for the Industry
The acquisition highlights a growing industry trend: major beverage companies are no longer just focusing on traditional soft drinks but