PepsiCo Buys Poppi in $1.6 Billion Deal

• Poppi was taken over by PepsiCo through a deal paying about $1.6 billion to enhance its position in the healthful drink market.
• The Poppi bid results in the brand having distribution at a global yet intense speed within PepsiCo’s collection within the next few days of the deal being settled.

PepsiCo acquired Poppi, the trending prebiotic soda brand, for an amount of over $1.6 billion. The announcement was made on 17 March 2025, with this move indicating the global company’s will to expand even more and cater to health-conscious households while dumping sugary drinks from the gut-friendly sphere.

Shark Tank: Blizzard Sensation to Billion Dollar Brand

Poppi’s unfolding was nothing short of that of ”at the speed of light”. Started in Texas by Allison Ellsworth and Si Ellsworth, the brand began as a home remedy for Allison’s gut issues, using apple cider vinegar as the main ingredient. After an appearance on Shark Tank in 2018, where they received a $400,000 offer from brand guru Rohan Oza, Poppi quickly attracted attention from the alternative-thinking, health-conscious crowd.

Flash forward to 2025, and Poppi has moved from a small start-up to a significant player in the functional beverage; the company’s revenue surged 3 times during the last year, finally reaching the 100 million-dollar mark. Its colourful cans and audacious marketing claims amid gut-health benefits now place it at the top of the Gen Z and Millennial drinking sceptics list.

Why PepsiCo Went for a Page Out of Poppi

Creating room for Poppi in their portfolio was a move by PepsiCo that effectively stated where the soft drink’s future lies. The demand for low-sugar and gut-friendly beverages is increasing. Poppi has responded favourably to this trend. The health-conscious public has shown a positive interest in this line of prebiotic sodas that are made with apple cider vinegar and natural fruit flavours. Poppi is a perfect addition to an evolving portfolio belonging to PepsiCo.

Further implicit in the transaction’s gains is PepsiCo’s new access to Poppi with its younger, wellness-orientated consumer base. Given a consumer emphasis on clean labels, the beverage giant pins high hopes on Poppi to be its key driver for functional-beverage market growth, shown to garner additional revenue of over $200 billion by 2030.

Implications for Poppi and PepsiCo

From Poppi’s standpoint, the contract means the chance of gigantic growth. Additionally, the beverages are well-penetrated in the markets with PepsiCo’s network of evocation and consumer appetite! It seems the fans will be able to purchase Poppi in numerous new retail, café, and restaurant locations, side by side with the mainstream beverages of PepsiCo.

For PepsiCo, too, this is regarded as a very smart pick for any of the wellness drinks that could run through future sinkholes. PepsiCo has been slowly but surely adding onto the healthier beverages shelf with Bubly sparkling water and KeVita kombucha already in its armoury. The addition of Poppi certainly helps PepsiCo strengthen its foothold in prebiotic and probiotic drink markets, which are very much in a state of vibrant inflation.

Healthier Soda: Here to Stay

As consumers show greater interest in functional health benefits, the establishment of any large soda company now witnesses major adjustments from its pre-existing norms. Low-sugar, probiotic, and prebiotic drinks are no more in the early stages of becoming trendy—they are fast gaining traction as mainstream staples.

PepsiCo’s CEO, Ramon Laguarta, has accepted the transaction with fellasniffle to, as he put it, “naturally fit in” with the company’s future programs. “Poppi has created a fantastic brand with a loyal following,” he said. “We’re excited to help take it to the next level and offer more people access to gut-healthy, better-for-your beverages.”

What’s Coming Next for Poppi?

After the acquisition, Poppi is planning to stay in business independently under a different marketing theme, with a touch of playfulness. The deal with PepsiCo has provided a guarantee for the introduction of new flavours, super-size production arrangements, and mass availability.
PepsiCo’s willingness to invest $1.6 billion in Poppi is a reflection of the enduringness of this class of functional wellness beverages. Such generosity ensures that the prebiotic soda brand will be popping up in your local shop for the nth time as Poppi continues to shake up the conscious drinks market.