PepsiCo Buys Healthy Soda Brand Poppi
March 17, 2025 – In a bold move to bolster its portfolio in the rapidly growing “better-for-you” beverage market, PepsiCo announced today the acquisition of Poppi, a prebiotic soda brand, for $1.95 billion. The deal, which includes $300 million in anticipated cash tax benefits, brings the net purchase price to $1.65 billion and underscores PepsiCo’s strategic shift toward healthier drink options amid declining demand for traditional sugary sodas.
Poppi, founded in 2018 by husband-and-wife duo Allison and Stephen Ellsworth in Austin, Texas, has quickly risen to prominence with its low-calorie, gut-health-focused sodas. Combining prebiotics, fruit juice, and apple cider vinegar, Poppi offers a refreshing alternative to conventional carbonated drinks, boasting no more than five grams of sugar per serving. The brand gained national attention after securing an investment from Rohan Oza on ABC’s “Shark Tank” and has since expanded to major retailers like Whole Foods, fueled by a 122% year-over-year sales surge in early 2025.
PepsiCo Chairman and CEO Ramon Laguarta hailed the acquisition as a key step in the company’s evolution. “Consumers are increasingly seeking convenient, great-tasting options that align with their focus on health and wellness,” Laguarta said in a statement. “Poppi’s unique position in the functional beverage category complements our efforts to meet these demands and expand our offerings.” The deal positions PepsiCo to capitalize on the prebiotic soda trend, a segment that has seen explosive growth as health-conscious younger consumers drive demand for gut-friendly alternatives.
The acquisition comes at a critical time for PepsiCo, which has faced challenges from softening sales of its legacy sodas and snacks like Lay’s due to price hikes and shifting preferences. Rival Coca-Cola recently entered the prebiotic space with its Simply Pop launch, while competitors like Keurig Dr Pepper and Celsius Holdings have also pursued wellness-focused acquisitions. Poppi’s 1% share of the U.S. carbonated soft drink market, though small, reflects its outsized influence in the modern soda segment, according to industry analysts.
For Poppi, the partnership with PepsiCo promises expanded reach and resources. “We’re thrilled to join forces with PepsiCo to bring our soda to more people while staying true to what makes Poppi special,” said Allison Ellsworth, Poppi’s Chief Brand Officer. The brand’s 16-flavor lineup, including fan favorites like Strawberry Lemon and Classic Cola, is expected to benefit from PepsiCo’s vast distribution network and marketing prowess.
The transaction, subject to regulatory approval, follows PepsiCo’s recent moves to diversify its portfolio, including the $1.2 billion purchase of Siete Foods in January and the acquisition of the remaining stake in Sabra hummus late last year. While Poppi’s rise has not been without controversy— including a pending $8.9 million settlement over disputed health claims—its sale to PepsiCo signals confidence in the enduring appeal of functional beverages. As the deal awaits closure, industry watchers are eager to see how this acquisition will reshape the competitive landscape of the soda aisle.