PepsiCo Acquires Poppi to Strengthen Better-For-You Beverage Portfolio
PepsiCo has acquired a majority stake in prebiotic soda brand Poppi, reinforcing its commitment to the better-for-you beverage category. The deal, reportedly valued at over $1 billion, signals the growing demand for functional beverages among health-conscious consumers.
Strengthening Functional Beverage Offerings
Poppi, a Texas-based brand known for its apple cider vinegar-infused sodas, has gained significant popularity since launching in 2020. The brand’s focus on gut health and natural ingredients aligns with shifting consumer preferences toward functional wellness drinks.
PepsiCo had previously invested in Poppi through its venture arm, PepsiCo Ventures Group. This full acquisition allows PepsiCo to expand its offerings in the fast-growing functional soda market, where demand for products with digestive and immunity-boosting benefits has surged.
Shifting Consumer Preferences Drive Growth
The acquisition underscores the growing appeal of functional beverages within the FMCG sector. Consumers are increasingly looking for options that go beyond refreshment, seeking drinks that offer added health benefits. According to industry reports, the functional beverage market is projected to grow at a compound annual growth rate (CAGR) of over 8% in the coming years.
PepsiCo’s investment in Poppi mirrors a broader trend of major beverage companies diversifying their portfolios. Coca-Cola, for instance, has expanded its presence in the functional beverage space with brands like BodyArmor and Vitaminwater.
Retail Expansion and Future Implications
Poppi has experienced rapid retail growth, now available in major grocery stores and online platforms nationwide. With PepsiCo’s extensive distribution network, the brand could see an even greater presence in mainstream retail and foodservice channels.
For FMCG professionals, this acquisition highlights the importance of tracking emerging trends in consumer health preferences. As demand for functional products grows, brands that align with wellness trends stand to gain traction in an increasingly competitive beverage landscape.
With PepsiCo doubling down on better-for-you innovations, the competition in the functional beverage segment is expected to intensify, shaping the future of the soft drink industry.