PepsiCo Acquires Poppi, Expanding Its Functional Beverage Portfolio
PepsiCo has acquired a majority stake in prebiotic soda brand Poppi, further solidifying the company’s investment in the fast-growing functional beverage category. The acquisition, reportedly valuing Poppi at more than $1 billion, marks a significant milestone for the Austin-based brand, which has gained traction among health-conscious consumers for its gut-friendly sodas.
PepsiCo Strengthens Functional Beverage Lineup
The deal underscores PepsiCo’s strategic push into the health-forward beverage space, a segment experiencing rapid growth as consumers seek alternatives to traditional soft drinks. Poppi’s low-sugar, apple cider vinegar-infused sodas have resonated with younger audiences, positioning the brand as a leader in the functional soda movement.
PepsiCo previously invested in Poppi through its venture arm, PepsiCo Ventures Group, and partnered with the brand to expand its distribution. With this acquisition, Poppi gains access to PepsiCo’s vast resources, including supply chain expertise and a global retail network, accelerating its growth in an increasingly competitive market.
Poppi’s Meteoric Rise and Market Impact
Founded in 2020, Poppi has rapidly expanded its footprint in the U.S., leveraging strong digital marketing and influencer partnerships to capture a loyal consumer base. The brand’s emphasis on gut health, minimal sugar, and natural ingredients has appealed to millennials and Gen Z consumers looking for functional benefits in their beverages.
The functional beverage market, particularly the gut-health category, has experienced a surge in demand. According to industry reports, the global prebiotic drinks market is projected to reach billions in revenue over the next few years, prompting major beverage corporations to invest in innovative, health-focused brands.
What This Means for the Beverage Industry
PepsiCo’s acquisition signals a broader trend of major FMCG players investing in health-centric brands to meet evolving consumer preferences. As more consumers shift toward beverages that offer health benefits beyond hydration, functional sodas are becoming a high-growth category within the non-alcoholic beverage space.
With this move, PepsiCo strengthens its position in the better-for-you beverage market, where competition is increasing from both established brands and emerging startups. The acquisition of