PepsiCo Acquires Prebiotic Soda Brand Poppi in $1.6 Billion Deal
PepsiCo has announced the acquisition of Poppi, a rapidly growing prebiotic soda brand, for more than $1.6 billion. The move marks the company’s latest effort to expand its portfolio of functional beverages, catering to the increasing consumer demand for gut health-focused options.
Strategic Expansion in Functional Beverages
With health-conscious consumers driving the demand for better-for-you beverages, PepsiCo is positioning itself to capitalize on this shift. Poppi, known for its apple cider vinegar-infused sodas that promote digestive health, aligns with PepsiCo’s broader strategy of diversifying beyond traditional carbonated soft drinks.
The transaction underscores the growing appeal of functional drinks in the FMCG sector, particularly among younger demographics seeking alternatives to sugary sodas. PepsiCo’s investment in Poppi follows a series of moves aimed at strengthening its presence in this segment, including collaborations with other emerging wellness brands.
Poppi’s Rapid Growth and Market Influence
Founded in 2020, Poppi has experienced meteoric growth, gaining traction through strong social media engagement and influencer marketing. The brand’s unique positioning—offering a gut-friendly soda with reduced sugar content—has resonated with Gen Z and millennial consumers.
Poppi’s annual retail sales reportedly surpassed $200 million as of 2024, making it one of the fastest-growing functional beverage brands in the U.S. Analysts suggest PepsiCo’s backing will significantly enhance Poppi’s distribution and production capabilities, accelerating its growth trajectory.
Industry Implications
The acquisition signals a broader trend in the FMCG sector, with major beverage players investing in health-focused brands to diversify their portfolios. As consumers place greater emphasis on wellness, functional beverages are becoming a pivotal category for market expansion.
For PepsiCo, integrating Poppi into its portfolio provides an opportunity to compete more aggressively in the expanding health-conscious market. With established distribution networks and marketing expertise, PepsiCo is expected to amplify Poppi’s reach both in the U.S. and internationally.
This acquisition follows similar strategic purchases by leading beverage companies aiming to tap into the fast-growing functional and gut health-focused drink category. As