Poppi Just Sold for $1.6 Billion

PepsiCo has announced its acquisition of Poppi, the rapidly growing prebiotic soda brand, in a $1.65 billion deal, further solidifying its push into the health-conscious beverage market.

The move aligns with PepsiCo’s ongoing strategy to diversify beyond traditional sugary sodas and snack foods. Earlier this year, the company acquired Siete Foods – a brand known for its gluten-free chips – for $1.2 billion, and in late 2024, it took full ownership of the Sabra hummus brand.

PepsiCo’s Expansion Into Functional Beverages

PepsiCo CEO Ramon Laguarta emphasized the company’s commitment to meeting consumer demand for healthier options.

“We’ve been evolving our food and beverage portfolio over many years by innovating within our existing brands and through strategic acquisitions,” Laguarta said in a statement Monday. “More than ever, consumers are looking for great-tasting, convenient options that align with their health and wellness goals. Poppi is a great complement to our portfolio transformation.”

With the backing of PepsiCo’s global distribution network and marketing power, Poppi is expected to gain a competitive edge over rival Olipop, another prebiotic soda brand that recently hit a $1.85 billion valuation after a strong funding round. However, prebiotic sodas remain a niche category, with only 5% of consumers regularly drinking them, according to consumer research firm Zappi.

Poppi’s Rise From “Shark Tank” to Billion-Dollar Brand

Poppi first gained public attention in 2018 when it appeared on Shark Tank under its original name, Mother Beverage. The brand rebranded and positioned itself as a gut-health-friendly soda, incorporating prebiotics and apple cider vinegar. While Poppi’s health claims have been met with some skepticism, its popularity has continued to soar.

PepsiCo’s major competitor, Coca-Cola, recently entered the prebiotic soda market with the launch of Simply Pop. Other brands, including Spindrift Soda and Bloom Nutrition, have also introduced similar products in response to the growing demand for functional beverages.

The Future of Prebiotic Sodas

Despite its success, Poppi has faced some public criticism. Most recently, the brand sparked backlash after gifting full-sized Poppi vending machines to influencers during Super Bowl weekend, which some social media users called excessive and out of touch.

However, industry experts believe the functional beverage sector is only getting stronger. The category is projected to reach $2 billion in sales by 2029, according to research from Coca-Cola.

With PepsiCo scrapping plans to develop its own prebiotic soda under its Soulboost brand, its investment in Poppi signals a commitment to buying into the trend rather than building from scratch.

“We’ll see whose strategy plays out better—PepsiCo’s acquisition model or Coca-Cola’s in-house development approach,” said Duane Stanford, editor and publisher of Beverage Digest. “Much depends on whether prebiotic sodas have long-term potential or are just a passing trend.”

The acquisition is subject to regulatory approval, and PepsiCo has not disclosed when the deal is expected to close.