PepsiCo acquires Poppi in a strategic move that reflects the growing consumer demand for functional, low-sugar beverages. The $1.95 billion acquisition, including $300 million in anticipated tax benefits (net cost around $1.65 billion), positions PepsiCo to expand into the fast-growing “better-for-you” soda category. This deal, finalized in May 2025, marks a notable shift in PepsiCo’s product strategy.
This acquisition reinforces PepsiCo’s ongoing transformation toward healthier offerings. Poppi aligns seamlessly with its broader growth strategy and follows previous wellness-oriented acquisitions like Siete and Sabra. By acquiring Poppi rather than building a new product from scratch, PepsiCo gains a ready-made brand with strong consumer appeal and market traction.
Poppi carved its niche in the functional beverage space with prebiotic soda made from fruit juice, apple cider vinegar, and no more than five grams of sugar per can. The brand has capitalized on viral marketing and influencer-driven appeal, particularly among Gen Z and millennials. PepsiCo’s acquisition allows it to directly participate in a segment experiencing rapid growth and strong consumer interest.
Poppi grew from kitchen origins to a thriving brand featured nationwide. As of 2024, annual sales exceeded $100 million, and retail sales surged by over 120 percent year-over-year. With this acquisition, PepsiCo aims to scale Poppi’s reach dramatically, leveraging its expansive distribution to introduce it to millions more consumers.
Poppi began as a homemade creation by Allison and Stephen Ellsworth in 2015. Initially sold as “Mother Beverage” at local farmers markets, it combined apple cider vinegar, fruit juice, sparkling water, and prebiotics. The brand took off after a 2018 appearance on “Shark Tank,” where investor Rohan Oza backed the company and guided its rebranding and expansion.
Poppi’s vibrant packaging, influencer collaborations, TikTok campaigns, and limited-edition flavors helped the brand amass a loyal following. As of 2024, it was stocked in over 120 stores and became a symbol of modern, health-conscious soda culture.
PepsiCo acquires Poppi for a total of $1.95 billion. The net cost is around $1.65 billion after $300 million in tax benefits. The agreement also includes performance-based earnouts that reward Poppi’s future growth success.
As per PepsiCo’s official statements, this deal is more than a transaction—it complements the company’s broader portfolio evolution to align with modern consumption habits and health preferences.
Poppi faced legal challenges around its “gut health” messaging. A 2024 class-action lawsuit claimed the prebiotic content was insufficient for meaningful wellness benefits. The brand reached an $8.9 million settlement, which is pending approval. Disclosure modifications had already been made by late 2023. PepsiCo will need to manage this legacy issue carefully to ensure brand integrity and consumer trust moving forward.
Integrating Poppi’s artisanal, influencer-driven culture into a global corporate system poses risks. Preserving authenticity while scaling is critical. PepsiCo will need to maintain the brand’s core identity even as it leverages its marketing and distribution power.
PepsiCo acquires Poppi in a well-timed, strategic move. With a purchase price of $1.95 billion (net $1.65 billion), the acquisition underscores PepsiCo’s commitment to evolving with consumer tastes. By snapping up Poppi—a brand built on authenticity, health positioning, and digital engagement—PepsiCo gains more than a product: it acquires cultural relevance and a foothold in a high-growth segment.
The challenge now is to nurture the Poppi identity while offering it to a broader audience, turning a once niche, kitchen-born soda into a global wellness icon.
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