PepsiCo Buys Prebiotic Soda Brand Poppi for $1.65 Billion

PepsiCo purchased Poppi for $1.65 billion on March 17, 2025. The deal includes $300 million in tax benefits, bringing the total value to $1.95 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. Poppi is a great complement to our portfolio transformation efforts to meet these needs," said Ramon Laguarta to PepsiCo.com.

The deal marks an incredible journey for Allison and Stephen Ellsworth, who began experimenting with recipes in their kitchen. "When I created Poppi, it was fueled by a desire to create a better-for-you soda," said Allison Ellsworth. "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."

Each can combines fruit juice, prebiotics, and apple cider vinegar in 14 different flavors. Sugar levels remain under five grams per drink.

Since 2020, U.S. functional beverages have experienced rapid growth. The market grew 54%, reaching $9.2 billion by March 2024. These drinks now represent a tenth of non-alcoholic beverage sales.

With its 34% share of functional sodas, Poppi leads a market expected to reach $173 billion next year.

The company took off after attracting Rohan Oza's attention on Shark Tank. What began as Mother Beverage in 200 stores has expanded to over 20,000 locations nationwide.

On social media, Poppi continues to build its presence - with 204,000 Instagram followers and 322,000 TikTok followers.

The acquisition reflects broader changes in soft drinks. While Coca-Cola introduced Simply Pop, rival Olipop raised $50 million at a $1.85 billion valuation to grow their product line.