Things are really popping off in the healthy soda space.
On March 17, PepsiCo, Inc. announced that it had reached a deal to acquire prebiotic soda brand Poppi for a net purchase price of $1.65 billion. The move marks the soda giant’s move into healthy sodas, following headlines from another soda giant entering the space: Coca-Cola.
PepsiCo CEO and chairman Ramon Laguarta said in the announcement that the corporation has been evolving its food and beverage portfolio through “disciplined, strategic acquisitions” that will ultimately result in more choices for its customers.
“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,” Laguarta said. “Poppi is a great complement to our portfolio transformation efforts to meet these needs.”
This year, Poppi is hot off the heels of its second Super Bowl commercial — and a vending machine controversy related to that ad — starring influencers like Jake Shane, Kaeli Mae and others.
The healthier-for-you beverage was created by Allison Ellsworth and Stephen Ellsworth in 2015 and sold at Whole Foods before businessman Rohan Oza became an investor through “Shark Tank.”
“When I created Poppi in our kitchen, it was fueled by a desire to create a better-for-you soda,” Allison Ellsworth, Poppi’s co-founder and chief brand officer, tells TODAY.com in an email. “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.”
Ellsworth also says that she hopes the company’s story inspires others to “explore their passions, take the risk, and believe that anything is possible.”
Poppi has faced some backlash to its gut health claims. In June 2024, a California woman filed a class-action complaint against the brand over what she said was false advertising of its prebiotic functionality.
For its part, Poppi says it believes it’s a soda that will last “for generations to come” and that it’s grateful to its team and partners who supported the company from the start.
PepsiCo is not the only soda giant to enter the world of gut health-oriented sodas. Just last month, the Coca-Cola Company announced that it would be launching a new product called Simply Pop, joining the bubbly prebiotic soda wars in direct competition with brands like Poppi and Olipop.
Coca-Cola said that Simply Pop will come in 12-ounce cans in four flavors: Strawberry, Pineapple Mango, Fruit Punch, Lime and Citrus Punch.
Competitor Olipop said on Feb. 12 that it raised $50 million at a valuation of $1.85 billion according to CNBC. The brand says it will be using the extra cash flow to expand its product lineup.
