PepsiCo Acquires Poppi to Expand Into the Health Conscious Market

To strengthen its position in the growing “healthier soda” market, PepsiCo (PEP.O) announced that it had paid $1.95 billion to acquire the prebiotic drink brand Poppi. The agreement was made as PepsiCo faced declining consumer demand for its traditional beverages and snack products.

Completed on March 17, 2025, this significant deal puts PepsiCo in a position to meet the growing demand from consumers for healthier beverage options.

Poppi

Founded by Allison and Stephen Ellsworth, Poppi has rapidly acquired popularity since making its debut on the reality TV programme “Shark Tank,” with the support of CAVU Consumer Partners guest investor Rohan Oza. In order to provide low-calorie substitutes for conventional sodas, Poppi’s range of sodas inventively blends prebiotics like agave inulin and cassava root fibre with fruit juice and apple cider vinegar, making sure that each serving has no more than five grams of sugar.

The Rise of Healthier Beverages 

In the recent years, beverage companies are being forced to adapt as consumers, especially youngsters, are switching to healthier sodas and energy drinks. For instance, Coca-Cola’s ‘Simply Pop’ is a prebiotic soda that the brand has added to its Simply brand category. Other companies have also invested in the wellness drink sector, such as Celsius Holdings (CELH.O) and Keurig Dr Pepper (KDP.O).

Simply Pop
Simply Pop

The goal of PepsiCo’s acquisition of Poppi is to increase its market share in the rapidly expanding heathier soda segment.

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In addition to strengthening PepsiCo’s position in the market, this historic acquisition marks the beginning of new beverage dynamics in which traditional options will be increasingly challenged by health-conscious goods. This will ultimately force established brands to innovate or risk falling behind.

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