PepsiCo announced Monday its acquisition of prebiotic soda brand Poppi for $1.95 billion, strengthening its position in the rapidly growing functional beverage market. The deal includes $300 million in anticipated cash benefits, bringing the net purchase price to $1.65 billion.
“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,” said PepsiCo Chairman and CEO Ramon Laguarta.
Poppi co-founder Allison Ellsworth expressed enthusiasm about the partnership’s potential to expand the brand’s reach. “We can’t wait to begin this next chapter with PepsiCo… I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation.”
Ellsworth developed Poppi—originally called Mother Beverage—in her kitchen in 2015, combining fruit juices with apple cider vinegar, sparkling water, and prebiotics. The brand gained momentum after a 2018 appearance on Shark Tank, where investor Rohan Oza took a stake and led a major rebranding effort.
“We’re beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy Poppi,” said Oza, co-founder of CAVU Consumer Partners.
Despite its success, Poppi faced a class-action lawsuit last summer from a consumer claiming its gut health marketing claims were exaggerated.
