PepsiCo Acquires Prebiotic Soda Brand Poppi for Nearly $2 Billion

In a significant move within the beverage industry, PepsiCo has announced its acquisition of Poppi, a brand specializing in prebiotic sodas, for almost $2 billion. This announcement was made public on Monday by the Purchase, New York-based beverage giant.

Strategic Shift to Enhance Beverage Portfolio

PepsiCo initially contemplated launching its functional soda line under the Soulboost brand; however, it opted to acquire Poppi instead. Poppi stands out in the market by blending prebiotics, fruit juice, and apple cider to create a low-calorie soda option.

Brand Background and Growth

Established in 2016, Poppi emerged as a healthier alternative to conventional soft drinks. Its popularity surged following a successful investment opportunity on “Shark Tank,” a reality show that showcases innovative business concepts. This exposure significantly boosted the brand’s recognition and consumer base.

PepsiCo’s Commitment to Consumer Choices

Ramon Laguarta, Chairman and CEO of PepsiCo, commented on the acquisition, stating, “We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers.” He emphasized the growing demand from consumers for convenient and flavorful options that cater to their health and wellness aspirations.

The Rise of Functional Beverages

The functional soda segment has garnered increasing interest from health-focused consumers. These beverages often include beneficial ingredients like prebiotics and reduced sugar levels, aiming to meet the demands of an evolving marketplace. Similarly, Coca-Cola has made its entry into this niche with the launch of its own prebiotic brand, Simply Pop.

Recent Acquisitions by PepsiCo

This acquisition follows PepsiCo’s recent purchase of Siete Foods for $1.2 billion, which was finalized in January. Additionally, in November, PepsiCo announced its intention to acquire full ownership of Sabra and Obela dip and spread brands from the Strauss Group, marking a period of aggressive expansion and diversification in its portfolio.

Conclusion

PepsiCo’s acquisition of Poppi reflects broader trends in consumer preferences toward health-oriented beverages. As the company continues to expand and innovate, it aims to solidify its position in the functional beverage market and respond to the evolving needs of its customers.