On March 17, PepsiCo announced its acquisition of the prebiotic soda brand Poppi, a rapidly growing name in the beverage industry. The deal, valued at $1.95 billion, includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion.

This acquisition aligns with PepsiCo’s ongoing strategy to diversify its beverage portfolio with health-conscious options.

The transaction is subject to customary closing conditions, including regulatory approval, and undisclosed additional terms.

The Rise of Poppi: From Kitchen Creation to Shark Tank Success

Poppi was founded in 2015 by Allison Ellsworth and her husband, Stephen Ellsworth, who originally developed the soda in their kitchen. The brand gained widespread recognition after appearing on Shark Tank in 2018, where it secured investment and set the stage for rapid expansion.

“We had a clear mission to create a functional soda that stands the test of time,” Allison Ellsworth stated in the press release.

Poppi’s formula features a combination of prebiotics, fruit juice, and apple cider vinegar, offering a low-calorie alternative with no more than five grams of sugar per serving. Its consumer-first approach, cultural appeal, and nutritional benefits have driven its loyal fan base and rapid growth in the market.

PepsiCo’s Strategic Vision for Healthier Beverages

PepsiCo’s Chairman and CEO, Ramon Laguarta, emphasized the company’s commitment to expanding its product lineup with healthier alternatives.

“We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers,” Laguarta said in a March 17 press release. 

He added, “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.”

Investor Confidence

Among Poppi’s notable investors is actress Olivia Munn, who celebrated the brand’s success on social media.

“After my very first @drinkpoppi I called the founders and asked to be an early investor,” she shared in a March 17 Instagram post. “What a ride.”

Allison Ellsworth also expressed her excitement about the acquisition and the brand’s future.

“We believe Poppi is the soda that will be embraced for generations to come,” she said. “We can't wait to begin this next chapter with PepsiCo to bring our soda to more people—and I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation.”

She continued, “I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible.”

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Poppi Had Challenges 

Despite its success, Poppi has faced obstacles.

 In June 2024, the brand was hit with a class-action lawsuit from a California woman who alleged that Poppi falsely advertised its health benefits and prebiotic properties. The case resulted in an $8.9 million settlement, which is currently awaiting court approval.

Additionally, Poppi’s recent Super Bowl marketing campaign sparked controversy. The brand gifted personal vending machines stocked with Poppi to select influencers, a move that drew backlash due to the machines’ $25,000 price tag and their exclusive placement in influencers’ homes rather than hospitals or schools.

Following the criticism, Allison Ellsworth addressed the concerns in a Feb. 10 TikTok.

“This vending machine campaign was put into place to bring awareness to the biggest soda moment of the year—the Super Bowl,” she explained. “We wanted to share Poppi with creators across the U.S. who were hosting Super Bowl parties for their friends and their family.”

She further emphasized the brand’s commitment to its consumers, stating, “Creator marketing has always been a staple of Poppi’s brand since we launched in 2020. But I know that it’s you, our community, that has been the biggest part of our success.”

Future Outlook

With PepsiCo’s backing, Poppi is poised for significant expansion. The acquisition positions the brand to reach a broader audience while maintaining its identity as a health-conscious soda alternative.

Time will tell how PepsiCo integrates Poppi into its portfolio, but for now, it’s clear that the prebiotic soda brand has carved out a strong presence in the industry.