PepsiCo Acquires Prebiotic Soda Brand Poppi in Strategic Move
PepsiCo has acquired Austin-based prebiotic soda brand Poppi, marking a significant investment in the growing functional beverage market. The deal follows PepsiCo’s earlier minority investment in the brand through its venture arm, PepsiCo Ventures Group.
Expanding PepsiCo’s Functional Beverage Portfolio
Founded in 2020, Poppi has rapidly gained popularity for its gut-health-focused sodas, which contain apple cider vinegar and prebiotics. Positioned as a better-for-you alternative to traditional soft drinks, Poppi’s growth aligns with shifting consumer preferences toward health-conscious and functional beverages.
According to Poppi, the brand has achieved substantial retail penetration, securing shelf space in major retailers nationwide and expanding its presence in both traditional and online markets. PepsiCo’s full acquisition positions the soda giant to strengthen its presence in this segment while leveraging Poppi’s brand loyalty and innovation.
Health-Conscious Beverages on the Rise
The functional beverage category, which includes drinks infused with probiotics, vitamins, and adaptogens, has witnessed strong demand in recent years. Consumers are increasingly seeking beverages with added health benefits, prompting large manufacturers to expand their portfolios beyond conventional soft drinks.
PepsiCo has been actively investing in this space, with Poppi now joining its portfolio alongside other better-for-you brands. The acquisition underscores the company’s strategy to diversify beyond traditional carbonated soft drinks and meet evolving consumer preferences.
Implications for the Industry
With PepsiCo’s distribution strength and marketing power, Poppi’s reach is expected to grow further, potentially accelerating category growth within the functional soda segment. The acquisition also signals increased competition among major beverage manufacturers to capture market share in the health-focused soda space.
The deal reflects a broader trend of established beverage companies investing in emerging brands with strong consumer followings. As functional beverages continue gaining traction, more acquisitions and product innovations are likely to shape the industry’s future.