19 Mar 2025 Say hello to PoppsiCo!
PepsiCo has confirmed it’s acquiring the prebiotic soda brand Poppi for $1.95-billion…..
Poppi has achieved the new American Dream: concocting an elixir and getting a multinational food and drink conglomerate to write a check with nine zeros to buy it.
News that PepsiCo is buying the trendy prebiotic soda brand Poppi comes shortly after arch-rival Coca-Cola Co announced it was entering the sector with the launch of Simply Pop.
Both are expanding into the “healthier soda” category at a time of falling demand for their traditional beverages. Young Americans are increasingly turning to healthier sodas and energy drinks as part of a broader shift to fitness and lifestyle products. Poppi contains only five grams of sugar per serving.
“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,” PepsiCo Chairman and CEO Ramon Laguarta said.
PepsiCo said the transaction includes $300-million of anticipated cash benefits, bringing the net purchase price to $1.65-billion.
Allison Ellsworth, the co-founder of Austin, Texas-based Poppi, said the combination with PepsiCo will expand Poppi’s reach.
“We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honour what makes Poppi so special while supporting our next phase of growth and innovation,” Ellsworth said.
Ellsworth developed Poppi – then known as Mother Beverage – in her kitchen in 2015 because she loved soda but was tired of the way it made her feel. She mixed fruit juices with apple cider vinegar, sparkling water and prebiotics and sold the drink at farmer’s markets.
The brand took off in 2018 when Ellsworth and her husband pitched it on “Shark Tank.” An investor on the show, Rohan Oza, took a stake in Mother Beverage and undertook a major rebrand. Poppi, with its brightly-coloured, fruit-forward cans, was born.
Gut health is a popular selling point: rival brand Olipop announced a funding round last month that valued the company at $1.85-billion. Together, the two prebiotic soda brands commanded about $817-million in US sales in the 52 weeks ending on January 25, or 2.7% of the US carbonated beverage industry.
But it hasn’t all been smooth sailing for Poppi. Last summer, multiple class-action lawsuits were filed against the brand by consumers who said its products don’t improve gut health as much as their marketing suggests.
Poppi denied those claims and noted that it removed references to “gut health” from its packaging in late 2023. But according to a court filing last week, Poppi has agreed to a settlement that includes an $8.9-million fund for payments to consumers. A hearing on the settlement is scheduled for May 8.
Sources: AP, Reuters, MorningBrew