PepsiCo Acquires Prebiotic Soda Brand Poppi: A Game-Changer in the Beverage Industry
As of March 17, 2025, the food and beverage world is abuzz with the news that PepsiCo has acquired Poppi, a rising star in the prebiotic soda market, for a whopping $1.95 billion. This blockbuster deal, trending on Google under the Food and Drink category in the United States, signals a major shift in the beverage industry as health-conscious consumers drive demand for better-for-you options. Here’s everything you need to know about PepsiCo’s bold move, Poppi’s meteoric rise, and what this acquisition means for the future of soda.
Poppi: The Prebiotic Soda Sensation
Founded in 2015 by Allison and Stephen Ellsworth in Dallas, Texas, Poppi started as a humble kitchen experiment called Mother Beverage. Combining fruit juices, apple cider vinegar, prebiotics, and a touch of stevia, the couple crafted a low-calorie soda with no more than five grams of sugar per serving. What began at local farmers’ markets quickly caught fire, landing a spot on Shark Tank in 2018. Investor Rohan Oza’s $400,000 infusion propelled Poppi into the spotlight, and the brand later rebranded and relocated to Austin.
Poppi’s appeal lies in its promise of gut health benefits, thanks to prebiotics like inulin fiber that support beneficial gut bacteria. With bold flavors like Strawberry Lemon and Watermelon, packaged in eye-catching cans, Poppi has become a favorite among millennials and Gen Z. By 2025, its retail sales reportedly soared past $500 million annually, cementing its status as a leader in the functional soda category.
Why PepsiCo Made the Move
PepsiCo, the Purchase, New York-based giant behind Pepsi, Mountain Dew, and Lay’s, has been diversifying its portfolio to keep pace with evolving consumer tastes. Traditional sugary sodas are losing ground as Americans prioritize wellness, with prebiotic sodas emerging as a top-growing segment in the U.S. carbonated drinks market. PepsiCo’s $1.95 billion acquisition of Poppi—netting $1.65 billion after $300 million in cash tax benefits—underscores its commitment to capturing this trend.
This isn’t PepsiCo’s first foray into healthier options. In January 2025, it snapped up Siete Foods for $1.2 billion, adding grain-free tortillas to its snack lineup. The Poppi deal, however, marks a strategic pivot into the functional beverage space, where rivals like Coca-Cola have already staked a claim with Simply Pop. Initially, PepsiCo planned to launch its own prebiotic soda, Soulboost, but opted to buy Poppi instead—a move analysts see as a faster track to dominating the category.
“We’ve been evolving our portfolio to offer more positive choices,” said PepsiCo Chairman and CEO Ramon Laguarta. “Poppi’s unique blend of wellness and culture perfectly complements our transformation efforts.”
What This Means for Soda Lovers
For consumers, PepsiCo’s acquisition of Poppi could mean wider availability of the trendy soda. With PepsiCo’s global distribution muscle, Poppi might soon pop up in more stores, vending machines, and even international markets. However, some fans worry that a corporate takeover could alter Poppi’s small-batch charm or ingredient list—a concern echoed in posts on X, where users lament the potential “corporatization” of their favorite indie brand.
On the flip side, PepsiCo’s resources could fuel Poppi’s innovation, introducing new flavors or formulations. The deal also includes performance-based incentives, hinting at ambitious growth plans tied to milestones over the next few years.
The Bigger Picture: Health Meets Soda
The Poppi acquisition reflects a broader industry shift. Prebiotic sodas, alongside competitors like Olipop, are redefining soda as a beverage that can taste good and do good. While a 2024 class-action lawsuit questioned Poppi’s gut health claims—alleging its 2 grams of prebiotic fiber per can fall short of meaningful benefits—the brand has pivoted its marketing to emphasize taste and low sugar over specific health promises. PepsiCo’s backing could help Poppi refine its messaging and product to stay ahead of scrutiny.
Meanwhile, Coca-Cola’s Simply Pop, launched in February 2025 with added Vitamin C and zinc, shows that beverage giants are all-in on functional drinks. As PepsiCo and Coca-Cola duke it out, consumers win with more options that blur the line between indulgence and wellness.
What’s Next for PepsiCo and Poppi?
The transaction, subject to regulatory approval, is expected to close soon, with Poppi poised to join PepsiCo’s roster of better-for-you brands. Analysts predict this move could bolster PepsiCo’s sluggish soda sales, which have faced headwinds from price hikes and shifting preferences. Posts on X suggest investor optimism, with PepsiCo shares climbing over 1.5% on March 17, 2025, following the announcement.
For Poppi founders Allison and Stephen Ellsworth, the deal is a dream come true. “We never imagined reaching so many people with a soda that stands the test of time,” Allison said. “PepsiCo will help us bring Poppi to the next level.”
Final Sip: A Toast to the Future
PepsiCo’s acquisition of Poppi is more than a business deal—it’s a signpost for where the beverage industry is headed. As health and taste converge, expect more brands to follow suit, blending function with flavor. Whether you’re a Poppi fan or a Pepsi loyalist, one thing’s clear: the soda aisle is getting a whole lot healthier in 2025.
Stay tuned for updates as this story unfolds, and grab a can of Poppi to toast the future of soda!
