The soft drink maker says the move targets consumers' interest in health wellness

With a Health and Human Services secretary pushing for healthier food and beverages, soft-drink giant Pepsico is adding a healthier beverage to its portfolio. It has announced a definitive agreement to acquire poppi, a prebiotic soda brand, for $1.95 billion.
The acquisition may signal PepsiCo's push into the health and wellness beverage market, aligning with evolving consumer preferences not to mention regulatory concerns. The purchase of poppi gives Pepsico a line of beverages known for their low-calorie, low-sugar content, infused with prebiotics, fruit juice, and apple cider vinegar.
"We've been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers," Ramon Laguarta, CEO of PepsiCo said in a statement.
"More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. poppi is a great complement to our portfolio transformation efforts to meet these needs."
Got its break on Shark Tank
poppi was founded by Allison and Stephen Ellsworth and gained national attention after appearing on ABC's "Shark Tank," where it secured funding from Rohan Oza and CAVU Consumer Partners. It promoted a "better-for-you" approach to soda, offering an alternative with no more than five grams of sugar per serving.
The beverages are popular with Gen Z consumers because poppi generally contains significantly less sugar and fewer calories than typical sodas. This is considered a positive factor for those trying to reduce their sugar intake. The sodas also include prebiotics, which can support gut health by feeding beneficial bacteria.
According to the Detroit News, poppi was hit with a class-action lawsuit in 2024 that accused the soda maker of overstating claims about gut health.
Defendants success is largely owed to its ability to preserve the flavor and sweetness of traditional sodas while claiming to be gut healthy due to its inclusion of prebioticsa specific type of dietary fiber commonly found in food like bananas and whole grains, the complaint said.
However, Defendants Poppi soda only contains two grams of prebiotic fiber, an amount too low to cause meaningful gut health benefits for the consumer from just one can. Accordingly,a consumer would need to drink more than four Poppi sodas in a day to realize any potentialhealth benefits from its prebiotic fiber.
Lawsuit aside, Allison Ellsworth expressed excitement about the acquisition, stating, "We believe poppi is the soda that will be embraced for generations to come.
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Posted: 2025-03-17 17:17:06