PepsiCo Acquires Prebiotic Soda Brand Poppi for $2 Billion to Expand Health-Conscious Beverage Portfolio

PepsiCo, a major player in the global beverage industry, has announced its acquisition of the prebiotic soda brand Poppi for nearly $2 billion. The Purchase, New York-based company revealed this strategic move on Monday, marking a significant step in its efforts to expand its portfolio in the health-conscious beverage market. This acquisition comes as part of PepsiCo’s broader strategy to adapt to changing consumer preferences, particularly as traditional soda consumption has seen a decline in the United States over the past two decades.

Poppi, founded in 2016, has gained considerable traction among consumers seeking healthier alternatives to traditional sodas. The brand combines prebiotics, fruit juice, and apple cider to create a low-calorie beverage option. Its rise in popularity was notably boosted by an investment from the reality television show “Shark Tank,” which provides entrepreneurs with a platform to pitch their innovative ideas. Poppi’s success in capturing the attention of health-conscious consumers aligns with a growing trend in the beverage industry towards functional and wellness-oriented products.

The acquisition of Poppi highlights the increasing interest from major beverage companies like PepsiCo and its rival Coca-Cola in the burgeoning prebiotic soda category. This segment has experienced significant growth over the past five years, driven by newcomers such as Poppi and Olipop. In response to this trend, Coca-Cola recently launched its own prebiotic soda brand, Simply Pop, underscoring the competitive landscape in this niche market.

PepsiCo’s decision to purchase Poppi instead of launching its own functional soda under the Soulboost brand reflects a strategic choice to capitalize on an already successful brand with a loyal customer base. By integrating Poppi into its portfolio, PepsiCo aims to enhance its offerings in the health and wellness sector, continuing its evolution in response to shifting consumer demands. This acquisition is part of PepsiCo’s ongoing efforts to innovate and diversify its product lineup through strategic acquisitions and brand development.