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.

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.