PepsiCo Acquires Prebiotic Soda Brand Poppi in $1.6 Billion Deal
PepsiCo has agreed to acquire prebiotic soda brand Poppi in a deal valued at more than $1.6 billion, strengthening its position in the fast-growing functional beverage category. The acquisition reflects the company’s continued investment in health-focused drinks as consumer demand for gut-friendly and lower-sugar alternatives rises.
Expanding PepsiCo’s Functional Beverage Portfolio
Poppi, known for its apple cider vinegar-infused sodas, has seen rapid growth in recent years. Since securing early funding from venture capital firms and gaining traction through influencer marketing, the brand has emerged as one of the leading players in the better-for-you beverage market. The acquisition follows PepsiCo’s previous minority investment in Poppi through its venture capital arm, PepsiCo Ventures.
With this deal, PepsiCo adds another functional beverage to its portfolio, complementing brands such as Gatorade and SodaStream. Industry analysts suggest that the move aligns with broader efforts by major beverage companies to capture a growing segment of health-conscious consumers seeking alternatives to traditional soft drinks.
Health-Driven Consumers Fuel Market Growth
Functional beverages have gained significant momentum over the past few years, driven by increasing awareness of gut health and demand for products with added wellness benefits. Poppi’s prebiotic sodas cater to this demographic by offering digestive health advantages while maintaining a refreshing taste. According to market research, the global functional beverage market is expected to continue expanding, positioning PepsiCo to benefit from sustained consumer interest.
Competitive Landscape and Future Integration
PepsiCo’s acquisition of Poppi places the company in direct competition with other emerging functional soda brands, as well as established players making moves into the space. Coca-Cola, for instance, has tested similar products, indicating a broader industry shift toward health-conscious offerings.
While PepsiCo has not disclosed immediate integration plans for Poppi, it is expected that the brand will maintain its independent identity while leveraging PepsiCo’s vast distribution and marketing capabilities. This could accelerate Poppi’s growth and expand its presence in mainstream retail channels.
The deal reinforces a trend of large beverage corporations investing in emerging health-focused brands, signaling continued evolution in consumer preferences and industry competition