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In a game-changing move for the beverage industry, PepsiCo Inc. announced Monday that it will acquire Poppi, the prebiotic soda brand that skyrocketed to fame after securing investment on ABC’s Shark Tank. The $1.65 billion deal reflects the growing consumer shift toward health-conscious alternatives and PepsiCo’s aggressive strategy to stay ahead of evolving market trends.

The acquisition, which includes an estimated $300 million in anticipated tax benefits for a total price tag of $1.95 billion, also comes with a potential post-closing earnout, hinting at even bigger aspirations for the brand’s future.

The Rise of Poppi: From Kitchen Experiment to Industry Disruptor

Poppi wasn’t born in a corporate boardroom—it started in a kitchen. Created by Allison and Stephen Ellsworth under the original name Mother Beverage, the brand was fueled by a simple mission: to craft a soda that tasted great without the usual artificial ingredients and excessive sugar.

Poppi’s formula—low in calories, low in sugar, and infused with prebiotics, fruit juice, and apple cider vinegar—hit a nerve with health-conscious consumers. With 14 bold flavors like Classic Cola, Root Beer, Strawberry Lemon, and Ginger Lime, the brand quickly gained a devoted following.

The real breakthrough came in 2018 when Poppi made its Shark Tank debut. Investor Rohan Oza, known for his ability to spot disruptive brands, saw the potential and, alongside CAVU Consumer Partners, helped propel the company into the national spotlight.

“Poppi is a true testament to the American Dream,” Oza said in a statement. “We’re beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy Poppi—a truly modern soda for the next generation.”

PepsiCo’s Strategic Play for the Future

For PepsiCo, this acquisition isn’t just about adding another beverage to its lineup—it’s about staying ahead in an industry where consumers are increasingly prioritizing wellness over tradition.

"We've been evolving our food and beverage portfolio over many years, innovating with our brands in new spaces and making disciplined, strategic acquisitions," said PepsiCo CEO Ramon Laguarta. "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."

The move aligns with PepsiCo’s broader strategy of “reorienting” its portfolio toward products that meet changing consumer preferences. The company noted that Poppi has not only tapped into the wellness trend but also built a strong cultural movement, solidifying its capacity for continued growth.

"When I created Poppi in our kitchen, it was fueled by a desire to create a better-for-you soda," said Allison Ellsworth. "We never imagined how many people we could reach through hard work, determination, and a clear mission to create a functional soda that stands the test of time. We can't wait to begin this next chapter with PepsiCo to bring our soda to more people."

The Dealmakers Behind the Billion-Dollar Acquisition

The acquisition brings together some of the biggest legal and financial players in the industry.

• PepsiCo’s advisors: Cravath, Swaine & Moore LLP is representing PepsiCo, with Davis Polk & Wardwell LLP serving as tax counsel. Centerview Partners is acting as lead financial adviser, with J.P. Morgan Securities also providing financial guidance.
• Poppi’s advisors: Cooley LLP is advising Poppi on the deal, with Goldman Sachs & Co. serving as the brand’s financial adviser.

The Changing Landscape of the Soda Industry

PepsiCo’s latest move is a clear signal that the soda industry is no longer just about carbonated soft drinks laden with high fructose corn syrup. The rise of functional beverages, from prebiotic sodas to electrolyte-infused waters, is reshaping what consumers expect from their drinks.

With this acquisition, PepsiCo is not only acknowledging that shift—it’s betting billions that Poppi is the future of soda.