PepsiCo announced their acquisition of Poppi for $1.95 billion on March 17. The acquisition includes $300 million of anticipated cash tax benefits, resulting in a net purchase price of $1.65 billion.
The purchase signals the growing position of prebiotic sodas in the beverage market. There is a rising demand for alternatives as consumers make purchases with a more health-conscious mindset.
The acquisition comes after PepsiCo’s rival company Coca-Cola launched a soft drink brand called “Simply Pop” in February. Simply Pop directly rivaled Poppi and their shared rival, Olipop. Ben Goodwin, Olipop’s CEO and co-founder, told CNBC in 2023 that Coke and PepsiCo approached Olipop about a potential sale.
“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,” Ramon Laguarta, Chairman and CEO of PepsiCo, said in a press release. “Poppi is a great complement to our portfolio transformation efforts to meet these needs.”
Poppi was launched in 2018 by Allison and Stephen Ellsworth and was originally named “Mother Beverage.” The prebiotic soda was created to mimic the taste of soda without the excessive sugar levels while also promoting gut health.
The drinks are a mixture of fruit juices with apple cider vinegar, prebiotics and sparkling water.
The couple pitched the beverage on “Shark Tank” and received $400,000 from businessman Rohan Oza. They have since raised millions in funding. Through rebranding and strategic marketing, the company rebranded itself as Poppi with a more modern design philosophy, including vibrant colors on their soda cans to appeal to younger consumers.
“Diet cola culture and artificial ingredients just don’t appeal to Millennial or Gen Z consumers,” Allison Ellsworth said in an interview with Forbes in 2024. “I think we connect with Gen Z because we’re so social forward and spend a lot of time and energy connecting with our online community.”
In addition, the company was focused on retail distribution through supermarkets like Whole Foods, Target, and Costco, while also hosting social media events at beach parties and pop-ups.
Through numerous celebrity collaborations, including a brand partnership with Post Malone and a sponsorship of the Los Angeles Lakers, the company’s annual sales exceeded $100 million in 2023.
In 2024 and 2025, Poppi reached millions of households during their Super Bowl commercial. However, Poppi faced a lawsuit in 2024, which alleged that the drink is not as healthy as advertised. The lawsuit stated that the two grams of fiber in the drink are too low to create a meaningful impact on gut health.
Poppi agreed to pay an $8.9 million settlement to resolve the class action lawsuit in early March.
