PepsiCo Acquires Prebiotic Soda Brand Poppi in $1.95 Billion Deal
PepsiCo has announced the acquisition of Poppi, a leading brand in the rapidly growing prebiotic soda segment, in a deal valued at $1.95 billion. The move underscores PepsiCo’s commitment to expanding its portfolio beyond traditional soft drinks and strengthening its presence in the functional beverage market.
Strengthening PepsiCo’s Functional Beverage Portfolio
Poppi has gained significant traction among health-conscious consumers, offering sodas infused with apple cider vinegar, which is known for its digestive benefits. The brand has experienced remarkable growth, driven by demand for beverages that deliver both taste and functional health benefits. With the prebiotic soda category witnessing double-digit growth, PepsiCo sees significant potential in integrating Poppi into its broader product lineup.
PepsiCo, which previously invested in Poppi through its venture arm, has closely watched the brand’s progress. This acquisition aligns with the company’s strategy of investing in functional beverages and catering to shifting consumer preferences. Over the past few years, the beverage giant has expanded its offerings in health-conscious categories, including plant-based drinks, hydration solutions, and low-sugar alternatives.
Market Trends and Competitive Landscape
Prebiotic and functional beverages are becoming key growth drivers in the soft drink market. Consumers are increasingly looking for beverages with added health benefits, leading to the rise of brands like Poppi, Olipop, and Health-Ade. According to industry reports, the global functional beverage market is expected to reach $208 billion by 2030, fueled by consumer demand for digestive health and immunity-boosting ingredients.
PepsiCo’s move into the prebiotic soda space follows competitor Coca-Cola’s investments in similar health-focused beverage brands. With growing concerns over sugar consumption and artificial ingredients, major players in the soft drink industry are diversifying their portfolios to stay relevant in an evolving marketplace.
Future Prospects for Poppi Under PepsiCo
Under PepsiCo’s ownership, Poppi will benefit from expanded distribution, marketing muscle, and supply chain efficiencies. Currently available through select retail and e-commerce channels, the brand is poised for broader mainstream adoption. The acquisition is expected to accelerate Poppi’s growth, allowing it to compete on a larger scale in an increasingly competitive sector.