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PepsiCo is Buying Prebiotic Soda Poppi For Nearly $2 Billion

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Posted 19 hours ago by inuno.ai

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PepsiCo announced on Monday that it is acquiring Austin-based prebiotic soda brand Poppi for over $1.6 billion.

The buying price is $1.95 billion, but the net purchase totals $1.65 billion after factoring in $300 million in anticipated cash tax benefits, per CNBC.

PepsiCo Charman and CEO Ramon Laguarta said in a statement that Poppi’s focus on health aligns with consumer preferences and allows PepsiCo to give its customers more choices. PepsiCo has other beverage brands in its portfolio, like Mountain Dew, Gatorade, and Pepsi-Cola.

“More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,” he stated.

Poppi soda. Photo by Eugene Gologursky/Getty Images for Poppi

Poppi sodas are a mixture of fruit juices, apple cider vinegar, prebiotics, and sparkling water, and the brand claims their product supports the growth of beneficial bacteria in the gut. Poppi has less sugar than traditional soda with a maximum of five grams and up to 35 calories per can. (In comparison, a standard 12-ounce can of Pepsi typically contains 41 grams of sugar and 155 calories.)

Husband-wife duo Stephen and Allison Ellsworth founded the brand as Mother Beverage in 2015 after experimenting with different flavors in their Dallas kitchen. They sold the product at a local farmers’ market and raised $125,000 from family and friends to grow their beverage business.

Related: The Co-Founder of OLIPOP Dropped Out of College and Built a $200 Million Business. Here’s His Smartest Advice for Entrepreneurs.

In 2018, the couple appeared on Shark Tank and attracted the notice of Rohan Oza, the investor behind Vitamin Water, Vita Coco, and Bai. Oza offered them $400,000 in exchange for a 25% stake in the company. The Ellsworths accepted, and Oza helped rebrand the company from Mother Beverage to Poppi, replacing Mother Beverage’s glass bottles with Poppi’s bold and brightly colored cans.

Poppi soda can now be found in 120 major retailers across the U.S., including Target, Costco, and Whole Foods, in over 36,000 locations. The brand offers 14 flavors like Ginger Lime, Cream Soda, and Classic Cola.

However, it hasn’t always been smooth sailing for Poppi. A class action lawsuit filed in June 2024 in California accused Poppi of falsely advertising the health benefits of its sodas. The lawsuit alleged that consumers would have to drink at least four cans of Poppi for 21 days to see any prebiotic benefit, and at that point, the total amount of sugar in the beverages would negate any positive health effects. The lawsuit has not been resolved at the time of writing.

Earlier this year, Poppi also spent $16 million on a one-minute Super Bowl commercial and gave 32 select influencers full-size vending machines. The marketing stunt didn’t go over well on social media, where customers asked why Poppi couldn’t have donated those machines to schools or hospitals.

One of Poppi’s main competitors, OLIPOP, also offers a lower sugar and prebiotic fiber. OLIPOP hit a $1.85 billion valuation in February.

Related: When This Energy Drink Changed Its Packaging, Sales Skyrocketed to $40 Million. Here’s Why It Worked.



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