PepsiCo acquires healthy prebiotic soda startup Poppi for $1.95 billion

PepsiCo has acquired Poppi, the prebiotic soda startup known for its healthier beverage options, in a deal valued at $1.95 billion. The net purchase price is $1.65 billion after factoring in $300 million in expected cash tax benefits. This move is part of PepsiCo’s strategy to strengthen its presence in the health and wellness market.

The acquisition comes as more young Americans are shifting toward healthier sodas and energy drinks, reflecting a broader focus on fitness and lifestyle products. Rival Coca-Cola is also tapping into this trend by expanding its Simply brand with the launch of a prebiotic soda called “Simply Pop.”

“PepsiCo said on Monday it would buy prebiotic soda brand Poppi for $1.95 billion, expanding in the “healthier soda” category at a time when the company is battling falling demand for its traditional beverages and snacks, Reuters reported.

Poppi started as a small startup in 2015, founded by Allison and Stephen Ellsworth. Originally known as Mother ACV Beverage, the brand gained attention after securing an investment from Rohan Oza on Shark Tank in 2018. The company later rebranded to Poppi, focusing on prebiotic sodas made with apple cider vinegar. Poppi found its niche with health-conscious consumers and gained momentum through creative marketing on platforms like TikTok.

PepsiCo’s interest in Poppi mirrors its approach to acquiring brands that tap into growing consumer trends, like its previous purchase of Siete Foods. This deal underscores PepsiCo’s push to diversify its offerings with products that appeal to evolving tastes.

By adding Poppi to its portfolio, PepsiCo gains a fast-growing brand and strengthens its position in the functional beverage market. It’s a strategic bet that aligns with shifting consumer preferences toward health-focused and wellness-oriented products.