PepsiCo is acquiring popular prebiotic soda brand Poppi for $1.95 billion. PepsiCo Chairman and CEO Ramon Laguarta said in a statement, that consumers were looking for “convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,” according to the Associated Press on Monday.
Poppi, which is known for its gut-healthy and low sugar approaches to carbonated beverages, was founded in 2018 by husband and wife team Stephen and Allison Ellsworth. Originally called “Mother Beverage,” it was sold at farmers’ markets before making an appearance on Shark Tank, getting funded, following distribution and a whole new rebranding from Mother Beverage to Poppi.
By mixing fruit juices with apple cider vinegar, prebiotics, and sparkling water, Allison Ellsworth aimed to reinvent soda formulas to get rid of the excessive sugar levels while keeping the taste of soda. In a matter of few years, he brand became one of the fastest-growing beverage brands in the U.S., achieving more than $100 million in revenue and selling in over 120 retailers in the country.
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“We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation,” Ellsworth said in a statement, adding that this would help Poppi get more customers.
Pepsi’s acquisition of Poppi signals a growing interest among beverage companies and in drinks that promote health and wellness. This acquisition comes following competitor Coca Cola launching Simply Pop just a few weeks ago and Olipop raising a $50 million Series C, valuing the rival prebiotic soda brand at nearly $2 billion.
Poppi’s brand and marketing, with a focus on wellness, fun, nostalgia, and lifestyle aspirations, have enabled its growing popularity. However, not all is going smoothly for the beverage company. In 2024, it faced a lawsuit claiming the drinks do not contain enough prebiotic fiber to “cause meaningful gut health benefits for the consumer from just one can, and with 2 grams of prebiotic fiber, a person would need to drink more than four Poppi sodas in a day to see any potential health benefits.”