PepsiCo Acquires Prebiotic Soda Brand Poppi in $1.6 Billion Deal
PepsiCo has acquired prebiotic soda brand Poppi in a deal valued at over $1.6 billion, marking a significant move in the fast-growing functional beverage category. The acquisition strengthens PepsiCo’s presence in the health-focused soft drink market, where demand for gut-friendly beverages has surged.
Expanding Functional Beverage Portfolio
Poppi, known for its apple cider vinegar-infused sodas, has gained a strong foothold in the competitive wellness drink segment. Since its debut, the brand has attracted health-conscious consumers seeking alternatives to traditional sugary sodas. PepsiCo had previously invested in Poppi through its venture arm, PepsiCo Ventures Group, and now brings the brand fully into its portfolio.
Rising Demand for Healthier Soda Options
The acquisition highlights the increasing consumer preference for beverages that offer functional benefits. Market research indicates significant growth in the prebiotic and probiotic drink segments as consumers prioritize digestive health. Poppi’s rapid retail expansion and strong online presence have made it one of the fastest-growing soda brands in the U.S.
By integrating Poppi into its lineup, PepsiCo aims to capture a larger share of the health-conscious consumer base. This move follows similar acquisitions in the functional drinks space, reinforcing the company’s strategy to diversify beyond traditional carbonated soft drinks.
Competition in the Better-for-You Beverage Market
With this acquisition, PepsiCo strengthens its position against competitors investing in functional and wellness beverages. Coca-Cola, for instance, has explored probiotic and botanical-infused drinks to align with consumer trends favoring gut health and natural ingredients.
Poppi’s emphasis on clean ingredients and reduced sugar content resonates with younger consumers who seek both flavor and health benefits. Its momentum in both retail and direct-to-consumer sales positions it as a valuable asset within PepsiCo’s extensive distribution network.
Future Implications
The deal signals continued investment in wellness-driven innovations within the beverage sector. As PepsiCo integrates Poppi, further product development and expanded distribution may follow, reinforcing the trend of major beverage companies adopting functional drinks into their core offerings.
For FMCG professionals, this acquisition underscores the growing importance of aligning with evolving