Driven primarily by social media marketing, Poppi has exceeded $500 million in annual revenue, according to Beverage Digest. Sales in tracked channels were $405 million in the last 52 weeks, according to a research note from Connor Rattigan, senior equity research analyst for Consumer Edge.

The prebiotic beverage market will be worth $2 billion by 2029, Beverage Digest stated.

For PepsiCo, the deal could also help improve sluggish overall soda sales trends; the company’s U.S. soft drink volume declined by 2.9% last year, Beverage Digest figures show. “We view the interest in Poppi as both an acknowledgment of [Pepsi’s] underperformance and a desire to participate in what is likely viewed as a meaningful growth opportunity,” Rattigan stated.

Coca-Cola last month launched Simply Pop, a prebiotic soda brand using its Simply juice brand. PepsiCo was believed to have been developing its own prebiotic soda under the Soulboost label before it began pursuing Poppi. The framework of the deal was reported first by Bloomberg on Friday.

Poppi was founded in 2018 by husband and wife Stephen and Allison Ellsworth as a home-brewed apple cider vinegar tonic called Mother Beverage. They attracted the attention of beverage investor Rohan Oza and his CAVU Investment Partners during a “Shark Tank” episode that same year. Rebranded as Poppi in 2020, Poppi gained traction on TikTok through Allison Ellsworth’s own videos, as well as robust influencer marketing.

Also read: Behind Poppi’s influencer vending machine backlash

“The growth Poppi has experienced in just five years is unprecedented. It has been an honor to work alongside the Ellsworths, the Poppi team, and our partners as we created a leading brand, a movement, and a community like no other,” Poppi CEO Chris Hall said in a statement. “I am thrilled to enter this next chapter with PepsiCo as they support our continued growth, innovation, and broaden our availability.”

Although it helped spark interest in the prebiotic soda movement, Poppi’s marketing in recent years emphasized taste and a better-for-you formulation that was low in sugar and calories vs. regular sodas, backing away from “gut-healthy” claims. The brand’s Super Bowl commercials in 2024 and 2025 carried a message of permissibility. Virtue Worldwide was the agency involved in both Big Game ads (shown below).