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PepsiCo Bets Big on Functional Sodas with $2 Billion Poppi Acquisition
In a bold move that underscores the growing momentum behind functional sodas and beverages, PepsiCo has acquired Poppi, a leading U.S. prebiotic soda brand, for just under $2 billion. The acquisition, finalised on March 17, marked a significant shift in the carbonated drinks landscape and highlighted consumer interest in healthier, low-sugar alternatives.
Poppi has rapidly risen to prominence. Founded in 2015 as Mother Beverage, it was rebranded in 2020 after a successful Shark Tank appearance. With over $500 million in sales in 2024, the brand now stands shoulder-to-shoulder with fellow health-conscious soda player Olipop. PepsiCo’s latest purchase represents its second billion-dollar acquisition in six months, signalling a clear strategic pivot toward wellness-driven consumer trends.
PepsiCo Chairman and CEO Ramon Laguarta emphasised the move’s relevance: “Poppi is a great complement to our portfolio transformation efforts. More than ever, consumers are looking for convenient and great-tasting options that align with their health and wellness goals.”
Poppi’s appeal lies in its blend of low-calorie refreshment and gut-health functionality. It offers functional sodas infused with apple cider vinegar and prebiotics in over 15 flavours. Despite some consumer scepticism—and a recently settled lawsuit over alleged misleading marketing claims—Poppi has cemented its position as a category leader. Industry experts see PepsiCo’s acquisition as a strategic decision to buy into a proven concept rather than risk building a new brand from scratch.
PepsiCo had previously tested the waters with its Soulboost line, featuring “functional” ingredients like L-theanine and ginseng, but reportedly dropped the effort due to poor market traction. With its loyal customer base and growing retail presence, Poppi presented a safer bet with high growth potential. Analysts estimate PepsiCo paid roughly four times Poppi’s trailing sales—a premium, but one considered justified by Poppi’s scale and consumer credibility.
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PepsiCo now gains access to a booming health-conscious market and the chance to push Poppi globally using its vast distribution network. However, experts caution that any expansion should be carefully paced. “If it ain’t broke, don’t fix it,” said Food Strategy Associates partner Richard Wyborn. “Growth should be gradual to maintain strong sales velocity.”
Meanwhile, attention is turning to Poppi’s closest rival, Olipop, which recently raised $50 million at a $1.85 billion valuation. Many industry watchers expect Coca-Cola—or another beverage giant—to make a move soon. “Olipop could be the next big acquisition,” Wyborn added.
Still, some remain sceptical. “At $2.50–$3 per can, functional sodas lack the instant benefits of energy or hydration drinks,” said Ivan Torossian, a director at GlobalData. “For health-conscious consumers, water remains a cheaper, simpler choice.”
Nonetheless, PepsiCo’s move affirms that functional soda is no longer a niche experiment. With this acquisition, the company is wagering that soda’s future lies not just in fizz, but in function.
