PepsiCo Acquires Prebiotic Soda Brand Poppi in $1.6 Billion Deal
PepsiCo has announced the acquisition of prebiotic soda brand Poppi in a deal worth more than $1.6 billion, marking a significant move into the functional beverage space. The Texas-based startup, known for its apple cider vinegar-infused sodas, has seen rapid growth in recent years as demand for gut-health-focused products continues to surge.
Strengthening PepsiCo’s Functional Beverage Portfolio
Poppi has gained widespread popularity among health-conscious consumers, offering soda alternatives that promote digestive health without artificial sweeteners or high sugar content. The brand experienced substantial retail growth and online traction, particularly through platforms like TikTok, where influencers and consumers have embraced its benefits.
For PepsiCo, the acquisition aligns with its ongoing strategy to diversify its beverage portfolio beyond traditional carbonated soft drinks. The purchase follows its previous investments in health-focused brands, including KeVita and SodaStream, as consumer preferences continue shifting toward functional and wellness-oriented drinks.
Riding the Functional Beverage Trend
The functional drinks market has experienced notable growth, with consumers increasingly seeking products that offer added health benefits. According to market research, the global functional beverage sector is expected to grow at a steady pace, driven by demand for probiotics, prebiotics, and other gut-friendly ingredients.
Poppi’s ability to carve out a strong niche within this space has made it an attractive acquisition target. The brand’s success highlights the effectiveness of direct consumer engagement through digital channels, reinforcing the power of social media in shaping modern beverage trends.
Implications for the FMCG Industry
PepsiCo’s move underlines a growing shift among major FMCG companies toward brands that cater to evolving health and wellness preferences. The acquisition may prompt competitors to accelerate their own investments in functional beverages, particularly in the prebiotic and digestive health categories.
As PepsiCo integrates Poppi into its portfolio, industry professionals can expect increased competition in this segment, with innovation and consumer engagement playing a crucial role in shaping the future of functional beverages.