PepsiCo Acquires Prebiotic Soda Brand Poppi to Strengthen Functional Beverage Portfolio
PepsiCo is expanding its presence in the functional beverage category with the acquisition of Poppi, a fast-growing prebiotic soda brand. The deal, announced on June 17, underscores the company’s strategic push into health-focused beverages as consumer demand for gut-health products continues to rise.
Fast Growth and Increasing Consumer Demand
Poppi, initially launched in 2020, has rapidly gained traction in the functional beverage market. The brand, known for its apple cider vinegar-infused sodas, has seen strong retail growth, with sales exceeding $100 million in 2023. Positioned as a healthier alternative to traditional soft drinks, Poppi appeals to consumers seeking digestive and immune system benefits without compromising on taste.
Prebiotic and gut-health products have surged in popularity, with the global functional beverage market projected to grow at a compound annual growth rate (CAGR) of 8.1% through 2030, according to industry reports. PepsiCo’s acquisition signals its commitment to tapping into this trend, complementing its existing portfolio that includes functional beverages like Bubly and Gatorade.
Strategic Fit for PepsiCo
PepsiCo has been an early investor in Poppi through its venture arm, PepsiCo Ventures Group. The acquisition allows the multinational giant to leverage its distribution network and marketing capabilities to accelerate Poppi’s growth. The brand currently enjoys strong digital and retail presence, including placements in major retailers like Target, Whole Foods, and Walmart.
For PepsiCo, the move aligns with its broader efforts to diversify its beverage offerings beyond traditional sodas. As consumer preferences shift towards more health-conscious alternatives, brands like Poppi provide an opportunity to capture younger demographics and health-conscious shoppers looking for functional benefits in their daily beverage choices.
Industry Implications
The acquisition reflects the growing influence of functional beverages in mainstream retail. With major players like PepsiCo actively investing in gut-health innovations, smaller brands in the space could see increased competition and consolidation within the category.
For retailers and FMCG professionals, the shift signals a stronger push toward wellness-oriented product assortments. As consumer interest in digestive health grows, brands that emphasize functionality and