Prebiotic Soda Power: PepsiCo Acquires Poppi for $1.95B
Is the fizz fading for traditional soda? Functional beverages, especially prebiotic soda, are certainly having a moment
PepsiCo has popped the tab on prebiotic soda, acquiring Poppi for $1.95 billion as it broadens its portfolio to include healthier options.
Last month, the better-for-you soda alternative starred in a Super Bowl commercial, depicting young consumers opting for a Poppi over a sugar-laden soda.
PepsiCo’s move follows a similar one by competitor Coca-Cola, which is launching Simply Pop, a fruit-forward functional beverage line that reimagines the Simply Orange Juice brand. The new functional drinks contain 25-30% real fruit juice, along with vitamin C and zinc.
For its part, Poppi combines prebiotics, fruit juice and apple cider vinegar, creating a beverage that is low-calorie and has no more than five grams of sugar per serving.
“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,” PepsiCo chairman and CEO Ramon Laguarta said. “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. Poppi is a great complement to our portfolio transformation efforts to meet these needs.”
Founded by Allison and Stephen Ellsworth, Poppi — then known as Mother Beverage — first burst onto the scene on a 2018 episode of ABC’s “Shark Tank,” scoring an investment from Rohan Oza.
“We believe Poppi is the soda that will be embraced for generations to come, and we’re beyond grateful to the amazing Poppi team, our partners who believed in us from the very beginning and most importantly, our incredible community,” Allison Ellsworth said. “We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation. I hope our story inspires others to explore their passions, take the risk and believe that anything is possible.
Last fall, PepsiCo acquired family-owned Siete Foods, known for its certified non-GMO products, many of which are Whole30-approved, vegan, and grain and dairy-free.
Bloom Nutrition has also entered the prebiotic soda space, announcing the upcoming Labor Day launch of Bloom Pop. The functional beverage will debut in five flavors, including Shirley Temple, Raspberry Lemon and Orange, at Walmart and other major retailers. Meanwhile, Olipop, another low-sugar functional soda brand with prebiotics, plant fiber and botanical extracts, secured a $50 million investment from J.P. Morgan Private Capital’s Growth Equity Partners, bringing its valuation to $1.85 billion.