PepsiCo has announced the acquisition of prebiotic soda brand Poppiin a deal valued at USD 1.95 billion. The agreement includes an anticipated USD 300 million in tax benefits, bringing the net purchase price to USD 1.65 billion.
Poppi, founded by Allison Ellsworth and her husband in 2015, first gained recognition when it was pitched on Shark Tank, a popular reality TV show where entrepreneurs pitch their business ideas to a panel of wealthy investors, in 2018. Investor Rohan Oza,who began his career at The Coca-Cola Company, helped rebrand the product, transitioning it from its original identity as "Mother Beverage" to its current vibrant and fruit-forward branding. The company rapidly gained traction in the functional beverage market, offering a soda with prebiotics, apple cider vinegar, and natural fruit flavors, aimed at health-conscious consumers.
The acquisition aligns with PepsiCo's strategy of expanding its portfolio with health-oriented products. “We’ve been evolving our food and beverage portfolio over many years through innovation and strategic acquisitions,” said Ramon Laguarta, Chairman and CEO of PepsiCo. “Poppi is a great complement to our transformation efforts to meet growing consumer interest in wellness-focused beverages.”
Co-founder Allison Ellsworth emphasized that joining forces with PepsiCo will allow Poppi to reach a broader audience while maintaining its core identity. “We can’t wait to begin this next chapter and bring our soda to more people while staying true to what makes Poppi special,” she stated.
Despite its rapid success, Poppi faced legal challenges in 2023 when multiple class-action lawsuits were filed against the brand over marketing claims regarding gut health benefits. The company denied misleading consumers and subsequently removed references to “gut health” from its packaging. A settlement agreement, which includes an USD 8.9 million fund for consumer claims, is currently awaiting court approval.
The acquisition remains subject to regulatory approval and customary closing conditions. Market confidence in the deal was reflected in PepsiCo's stock price, which rose nearly two percent following the announcement.
