PepsiCo to Acquire Trendy Prebiotic Soda Brand Poppi for $1.95 Billion
PepsiCo has announced plans to acquire Poppi, a fast-growing prebiotic soda brand, in a deal valued at $1.95 billion. The move strengthens PepsiCo’s position in the functional beverage space, as consumers increasingly seek healthier alternatives to traditional carbonated drinks.
Expanding PepsiCo’s Wellness Portfolio
Poppi, known for its apple cider vinegar-infused sodas, has rapidly gained traction among health-conscious consumers. Founded in 2020, the brand has capitalized on the growing demand for gut-friendly beverages, boasting flavors like raspberry rose, strawberry lemon, and ginger lime.
PepsiCo initially invested in Poppi through its venture arm, PepsiCo Ventures Group, and has supported the brand’s expansion in the competitive functional beverage market. With this acquisition, PepsiCo aims to accelerate Poppi’s distribution and leverage its marketing power to scale the brand globally.
Growing Demand for Functional Beverages
The deal reflects the surging popularity of functional beverages that offer health benefits beyond hydration. According to industry reports, the global functional drink market is projected to grow significantly as consumers shift toward beverages with added nutritional value.
Competitors like Coca-Cola have also ventured into the health-conscious space, acquiring and launching better-for-you beverage options, making PepsiCo’s acquisition of Poppi a strategic move to stay competitive.
Implications for the FMCG Industry
The acquisition highlights a broader trend of major FMCG companies investing in emerging wellness brands. Rather than developing new products from scratch, companies like PepsiCo are increasingly acquiring startups with strong consumer followings. This approach allows big brands to stay agile and meet evolving consumer preferences.
For retailers and distributors, Poppi’s integration into PepsiCo’s ecosystem may translate to wider availability and enhanced marketing support, potentially driving category growth in functional soft drinks.
What’s Next?
Upon finalization of the deal, Poppi will have access to PepsiCo’s vast distribution network, significantly boosting its reach in supermarkets, convenience stores, and online platforms. With health-driven beverage trends on the rise, PepsiCo’s investment in Poppi positions it well for long-term growth in the functional soda market