PepsiCo to Acquire Prebiotic Soda Brand Poppi in Strategic Functional Beverage Push
PepsiCo is set to acquire a majority stake in Poppi, the fast-growing prebiotic soda brand, in a move that underscores the beverage giant’s continued investment in the functional drinks space. The acquisition follows PepsiCo’s initial minority investment in Poppi through its incubator arm, PepsiCo Ventures, in 2022.
Poppi, known for its apple cider vinegar-based sodas that promote gut health, has seen rapid growth in the U.S. functional beverage market. Since its 2020 rebrand, the Texas-based startup has surged to become the top-selling U.S. functional soda, now available in more than 20,000 retail locations including Walmart, Target, and Whole Foods. According to sources familiar with the deal, Poppi achieved approximately $100 million in retail sales over the past year.
The acquisition enables PepsiCo to further strengthen its positioning in the health-conscious beverage segment, an area experiencing heightened consumer demand. Functional drinks—those offering benefits beyond basic nutrition—have seen double-digit growth, with gut health being a leading driver. This aligns with broader industry trends as more consumers seek beverages with added wellness benefits and recognizable, clean-label ingredients.
Incorporating Poppi into its portfolio also gives PepsiCo a stake in a brand with strong Gen Z appeal. Known for its bold branding and social media presence, Poppi has cultivated a loyal customer base that values functionality and flavor over traditional soda offerings. The acquisition could help PepsiCo tap into this demographic to reinvigorate its broader carbonated soft drink category.
The deal reflects a broader strategy by PepsiCo to diversify beyond traditional sodas. In recent years, the company has expanded into hydration, energy, and health-oriented beverages through acquisitions and innovation. This includes previous investments in SodaStream, Rockstar Energy, and the launch of functional water and health-forward juice products under existing brands.
While financial details of the Poppi acquisition have not been publicly disclosed, sources indicate the brand’s valuation could exceed $500 million. PepsiCo will continue to operate Poppi as a separate entity under its current leadership, signaling a likely commitment to maintaining the brand’s identity and growth trajectory.
The move positions PepsiCo to capture greater share in the functional beverage category, a space that is redefining consumer expectations—and competition