PepsiCo Acquires Poppi to Expand Functional Beverage Portfolio
PepsiCo is set to acquire a majority stake in Poppi, a prebiotic soda brand that has gained significant traction in the functional beverage segment. The deal, which values Poppi at over $1 billion, marks a strategic move by PepsiCo to strengthen its presence in the rapidly growing health-forward soft drink market.
Poppi’s Meteoric Rise in Functional Beverages
Since its debut in 2020, Poppi has capitalized on consumer demand for gut-friendly beverages, leveraging apple cider vinegar as a core ingredient. Positioned as a better-for-you soda alternative, the brand has resonated with health-conscious consumers seeking reduced sugar content alongside digestive benefits.
Poppi’s retail footprint and direct-to-consumer channels have expanded significantly, with strong sales momentum seen across major retailers like Whole Foods and Target. According to industry reports, the brand was generating approximately $100 million in revenue by 2023, reflecting robust growth within the competitive soft drink landscape.
PepsiCo’s Strategy in the Growing Functional Beverage Sector
PepsiCo has been actively investing in health-centric soda alternatives to diversify its beverage portfolio. The company’s previous stake in Poppi, acquired through its venture arm, PepsiCo Ventures Group, signaled early confidence in the brand’s potential. With this full acquisition, PepsiCo strengthens its ability to compete in the functional beverage industry, following similar moves with brands like KeVita and SodaStream.
The prebiotic soda market has become a key area of interest for major beverage companies as consumers increasingly prioritize gut health and natural ingredients. Poppi’s success underscores the growing shift away from traditional carbonated soft drinks toward wellness-driven options.
Market Implications and Future Outlook
PepsiCo’s acquisition of Poppi reflects a broader industry trend where legacy beverage companies are acquiring or investing in emerging brands rather than developing new products internally. This strategy allows them to tap into existing consumer interest and accelerate market penetration.
As PepsiCo integrates Poppi into its portfolio, industry analysts will be watching how the brand scales under new ownership while maintaining its authenticity and appeal. Given the increasing demand for functional beverages, the acquisition positions PepsiCo to capitalize on long-term category