PepsiCo has made a significant move into the growing health-conscious soda market by acquiring prebiotic soda brand Poppi for $1.95 billion. The acquisition comes as the functional drink market continues to experience year-on-year growth, with competitors Coca-Cola and Olipop also launching healthier soda alternatives.
Poppi, founded just over 10 years ago, has become one of the fastest-growing beverage brands in the US, achieving over $100 million in revenue and selling in over 120 retailers nationwide. The brand’s success can be attributed to its approach to branding and marketing, which has made it a cultural phenomenon among Gen Z and millennials.
Poppi’s unique blend of fruit juices, apple cider vinegar, prebiotics, and sparkling water has resonated with consumers seeking healthier soda alternatives without sacrificing taste. The brand’s colorful cans, exclusive merchandise, and collaborations with influencers and celebrities have created a loyal community around the product.
The acquisition marks a significant shift in the soft drinks industry, as legacy brands like PepsiCo are being forced to adapt to growing demand for less sugary drinks. With the functional beverages market projected to reach $231 billion by 2033, Poppi’s success is a indication that healthier soda alternatives are here to stay.
“PepsiCo has been evolving our food and beverage portfolio over many years,” said Ramon Laguarta, Chairman and CEO of PepsiCo. “We’re committed to offering more positive choices to our consumers, and Poppi is a great complement to our portfolio transformation efforts.”
Source: https://www.forbes.com/sites/claraludmir/2025/03/17/pepsi-co-buys-poppi-