PepsiCo is reportedly in advanced discussions to acquire Poppi, the prebiotic soda brand, in a deal worth over $1.5 billion. According to Bloomberg News, the acquisition could be finalized as soon as next week, marking a significant expansion of PepsiCo’s functional beverage portfolio.
Poppi, an Austin, Texas-based company, was co-founded by Allison and Stephen Ellsworth after Allison discovered the benefits of apple cider vinegar-based beverages for gut health. Since its launch, the brand has gained massive traction, marketing itself as a healthier alternative to traditional sodas. Poppi’s prebiotic sodas contain apple cider vinegar and natural fruit flavors, appealing to health-conscious consumers seeking digestive benefits without artificial sweeteners or excessive sugar.
The company gained national attention in 2018 when Allison and Stephen pitched Poppi (then called Mother Beverage) on ABC’s Shark Tank and secured an investment from Rohan Oza, a beverage industry veteran. Since then, Poppi has expanded into major U.S. retailers, including Target, Walmart, and Whole Foods, solidifying its presence in the booming functional beverage market.
Why PepsiCo Wants Poppi
This acquisition aligns with PepsiCo’s strategy of diversifying beyond traditional carbonated soft drinks and capitalizing on the growing consumer demand for health-conscious and gut-friendly beverages. PepsiCo has previously explored this space with Soulboost, a functional soda line that was discontinued due to low demand. Acquiring Poppi would allow PepsiCo to gain an established foothold in the category rather than building a competing brand from scratch.
Functional beverages, including prebiotic sodas, kombucha, and electrolyte-infused drinks, have surged in popularity as consumers seek health benefits alongside taste and refreshment. Poppi competes with brands like Olipop and Health-Ade, both of which have also experienced rapid growth in the wellness beverage market. By bringing Poppi under its umbrella, PepsiCo could leverage its global distribution network to push Poppi into new markets and expand its reach.
Although neither PepsiCo nor Poppi have publicly confirmed the deal, industry insiders suggest an official announcement is imminent. If finalized, this would be one of PepsiCo’s largest functional beverage acquisitions and could reshape the landscape of the gut-health beverage sector.