PepsiCo Acquires Poppi for Nearly $2 Billion to Expand Functional Beverage Portfolio
PepsiCo has announced the acquisition of prebiotic soda brand Poppi in a deal valued at nearly $2 billion, signaling the company’s continued commitment to the functional beverage category. The move strengthens PepsiCo’s position in the growing market for healthier soda alternatives, as consumer demand shifts towards drinks with added health benefits.
Strengthening PepsiCo’s Functional Beverage Portfolio
Founded in 2016, Poppi has experienced rapid growth in the functional beverage space, offering sodas infused with apple cider vinegar to promote gut health. The brand has gained popularity with younger consumers who seek flavorful, lower-sugar alternatives to traditional sodas.
By acquiring Poppi, PepsiCo aims to deepen its footprint in the evolving better-for-you segment, which already includes brands like Bubly and Kevita. This acquisition aligns with the company’s larger strategy to diversify its beverage offerings beyond traditional carbonated soft drinks and capitalize on health-conscious consumption trends.
Market Trends Drive Strategic Expansion
The deal reflects shifting consumer preferences in the carbonated beverage industry, where demand for functional drinks has surged. According to industry reports, the global functional beverage market is expected to reach $279 billion by 2030, with gut health and immunity-boosting ingredients being key growth drivers.
PepsiCo has been actively expanding its presence in this space, previously investing in health-focused brands and reformulating existing products to appeal to wellness-conscious consumers. The Poppi acquisition not only provides an established foothold in the prebiotic soda segment but also enhances PepsiCo’s ability to compete with rival Coca-Cola, which has been making similar moves in the better-for-you beverage sector.
What This Means for PepsiCo and the Industry
For PepsiCo, the addition of Poppi represents more than just a portfolio expansion—it’s a strategic bet on the future of soda. As demand for functional beverages rises, major players are expected to intensify their investments in this category, either through innovation or acquisitions.
Industry analysts suggest that soft drink brands that fail to adapt to changing consumption habits risk losing market share to challenger brands that combine flavor with functional benefits. With PepsiCo bringing Poppi under its umbrella, competition in the functional beverage segment is likely to heat