PepsiCo Acquires Prebiotic Soda Brand Poppi in Strategic Health-Focused Expansion
PepsiCo has acquired prebiotic soda brand Poppi, strengthening its portfolio as consumer demand for functional beverages continues to rise. The Austin-based startup, which gained national attention after securing investment on Shark Tank in 2018, had previously received backing from PepsiCo’s venture arm, PepsiCo Ventures Group.
Poppi specializes in prebiotic-infused sodas, tapping into the growing trend of gut health-focused products. The brand touts its beverages as not only flavorful but beneficial for digestive health, thanks to their inclusion of apple cider vinegar. As health-conscious consumers increasingly prioritize products with functional benefits, PepsiCo’s investment underscores the industry’s shift toward wellness-oriented offerings.
Poppi’s Growth and Market Influence
Founded by husband-and-wife duo Allison and Stephen Ellsworth, Poppi has rapidly expanded its retail presence across major grocery chains and online platforms. The brand has gained a loyal following among Gen Z and millennial shoppers, who are driving demand for healthier soda alternatives with clean-label ingredients.
The strategic acquisition follows a period of rapid growth for Poppi, with the company reporting triple-digit year-over-year sales increases in recent years. Its success aligns with a broader consumer shift away from traditional sodas and toward functional beverages that offer added health benefits.
PepsiCo’s Functional Beverage Strategy
PepsiCo’s acquisition of Poppi aligns with its broader strategy to diversify beyond traditional carbonated soft drinks and expand its footprint in the functional beverage sector. The company has made similar moves in recent years, acquiring health-focused brands such as SodaStream and KeVita, reinforcing its commitment to innovation in the wellness space.
By integrating Poppi into its portfolio, PepsiCo gains a foothold in the growing prebiotic soda segment—a category that has seen increasing retailer shelf space and strong consumer adoption. The move also reflects growing industry competition, with rivals like Coca-Cola investing in similar functional beverage categories.
Implications for the FMCG Industry
The acquisition signals continued momentum in the better-for-you beverage market, where health-driven innovation is reshaping the competitive landscape. As major FMCG players invest in brands that cater to changing consumer preferences, smaller functional beverage