PepsiCo to buy prebiotic soda brand Poppi, expanding into the healthier soda category

Thomson Reuters

· Posted: Mar 17, 2025 1:27 PM EDT | Last Updated: 3 minutes ago

PepsiCo said Monday it volition bargain prebiotic soda marque Poppi for $1.95 cardinal US, expanding into the "healthier soda" class astatine a clip erstwhile the institution is battling falling request for its accepted beverages and snacks.

Young Americans are progressively turning to healthier sodas and vigor drinks arsenic portion of a broader displacement to fittingness and manner products, with rival Coca-Cola expanding its Simply marque to motorboat a prebiotic soda called "Simply Pop."

Competitors specified arsenic Celsius Holdings and Keurig Dr Pepper person besides targeted the marketplace by snapping up smaller vigor and wellness drink-makers.

The Poppi woody boosts PepsiCo's beingness successful the steadfast drinks class astatine a clip erstwhile aggregate terms hikes measurement connected request for its sodas and Lay's snacks, pushing the institution to forecast anemic yearly profit.

Prebiotic sodas person go a top-growing class successful the U.S. wrong the carbonated drinks conception (CSD), powered by a displacement successful penchant to much gut health-focused drinks.

The woody helps successful "establishing a foothold successful the fast-growing 'modern' soda conception and shoring up a CSD portfolio that has been losing stock for years to Coca-Cola and Keurig Dr Pepper," J.P. Morgan expert Andrea Teixeira said.

Poppi combines prebiotics, effect juice and pome cider vinegar to make a low-calorie soda with nary much than 5 grams of sweetener per serving, PepsiCo said.

The Texas-based company's retail income jumped 122 per cent, year-over-year, successful the 12 weeks done Feb. 22 and present holds astir a 1 per cent share of the full carbonated brushed drinks category, according to BNP Paribas.

Poppi, founded by Stephen and Allison Ellsworth, was initially known arsenic Mother and rebranded successful 2020. The founders appeared connected Shark Tank successful 2018, and had gained the backing of capitalist and co-founder of CAVU Consumer Partners Rohan Oza.

The woody with Poppi includes $300 cardinal US of anticipated currency taxation benefits for a nett acquisition terms of $1.65 cardinal US, PepsiCo said, without disclosing further presumption of the deal.