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PepsiCo Acquires Poppi for $1.65 Billion to Expand in Functional Beverage Market

The acquisition positions PepsiCo to compete in the growing prebiotic soda category as health-conscious consumers shift away from traditional sugary drinks.

FILE - Pepsi soft drinks in plastic bottles are on sale at a grocery store in New York on Weds., Nov. 15, 2023. (AP Photo/Ted Shaffrey, File)
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PepsiCo is buying Poppi.
Bottles of Pepsi are displayed on a shelf in a supermarket in Sarajevo, Bosnia and Herzegovina October 29, 2024. REUTERS/Dado Ruvic/File Photo

Overview

  • PepsiCo announced it will acquire prebiotic soda brand Poppi for a net price of $1.65 billion, including $300 million in anticipated tax benefits.
  • Poppi, known for its low-sugar, prebiotic-infused sodas, has gained popularity among health-conscious Gen Z consumers and was founded in 2018 after a successful pitch on 'Shark Tank.'
  • The acquisition strengthens PepsiCo's portfolio of 'better-for-you' products following recent purchases of brands like Siete Foods and Sabra Hummus.
  • The functional beverage market, which includes prebiotic sodas like Poppi and rival Olipop, has seen significant growth, with U.S. sales increasing by 54% between 2020 and 2024.
  • The deal signals PepsiCo's intent to compete with Coca-Cola, which recently launched its own prebiotic soda brand, Simply Pop, to address rising consumer interest in gut-health-focused drinks.