PepsiCo Invests in Functional Beverages with Minority Stake in Poppi
PepsiCo has acquired a minority stake in better-for-you beverage brand Poppi, underscoring its strategic pivot toward health-conscious consumers and the growing functional soda category. The investment came through PepsiCo’s venture capital arm, PepsiCo Ventures Group. While financial details remain undisclosed, the move signals continued momentum for functional and low-sugar beverage innovation in the carbonated soft drink space.
Poppi, a prebiotic soda brand launched in 2020, has quickly scaled, reaching over $100 million in sales last year, according to industry estimates. Marketed as a gut-friendly alternative to traditional sodas, Poppi uses apple cider vinegar and contains approximately 5 grams of sugar per can, targeting wellness-minded millennials and Gen Z consumers. Its rapid ascent includes a growing retail footprint across national grocery and club retailers, as well as solid online sales performance.
This latest deal deepens the collaboration between PepsiCo and Poppi, following the brand’s earlier participation in the PepsiCo Greenhouse Accelerator program in 2021. According to Poppi co-founder Allison Ellsworth, the alliance will enable the company to expand distribution, manufacturing capabilities, and marketing reach, while allowing Poppi to maintain control of its brand strategy and growth direction.
For PepsiCo, the investment aligns with broader portfolio diversification efforts, as carbonated soft drink sales face increasing scrutiny from health-conscious shoppers. Functional and low-sugar drinks continue to gain share within the $400 billion global beverage market. With Poppi’s strong resonance among Gen Z consumers—many of whom prioritize gut health and clean label ingredients—the brand offers a timely growth channel amid shifting consumption preferences.
The move also reflects a pattern of strategic investments by major beverage players in emerging health-driven categories. PepsiCo’s continued expansion into functional drinks follows its prior acquisitions of brands like SodaStream and Rockstar Energy, signaling a clear intent to lead in the evolving better-for-you beverage space.
As competitive pressure mounts in the chilled beverage aisle, PepsiCo’s bet on Poppi may not only enhance its functional portfolio but also help the company reclaim share among younger audiences and wellness-seeking households.