How Poppi Went from Shark Tank to a $1.95 Billion Pepsi Acquisition

PepsiCo has announced its acquisition of Poppi, a rapidly growing prebiotic soda brand, for $1.95 billion. This strategic move aims to enhance PepsiCo's portfolio by tapping into the burgeoning functional beverage market, reflecting a shift towards healthier consumer preferences.​

Poppi's Origins and Growth

Founded in 2015 by Allison and Stephen Ellsworth in Austin, Texas, Poppi began as Mother Beverage, offering apple cider vinegar-based drinks at local farmers markets. The brand gained significant attention after the founders appeared on the television show "Shark Tank" in 2018, securing a $400,000 investment from Rohan Oza. This investment facilitated a rebranding to Poppi in 2020, aligning with a more youthful and modern audience. ​

Poppi's product line features low-calorie sodas that combine prebiotics, fruit juice, and apple cider vinegar, each containing no more than five grams of sugar per serving. The brand's innovative approach and health-centric messaging have cultivated a loyal consumer base, leading to rapid growth and annual sales surpassing $100 million by 2023. ​

PepsiCo's Strategic Acquisition

PepsiCo's decision to acquire Poppi aligns with its ongoing efforts to diversify its beverage offerings and meet the increasing consumer demand for healthier options. Ramon Laguarta, Chairman and CEO of PepsiCo, stated, "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."  This acquisition is part of PepsiCo's broader strategy to expand its presence in the functional beverage sector, following its $1.2 billion purchase of Siete Foods, another Austin-based healthy snack company, in January 2025. 

Market Implications and Future Outlook

The functional beverage market, particularly gut-health-focused products, has seen substantial growth in recent years. Poppi leads the U.S. gut-health drinks market, closely followed by competitors like Olipop. PepsiCo's entry into this segment is expected to intensify competition, especially as rival Coca-Cola recently launched its own prebiotic soda, "Simply Pop." ​

Despite facing challenges, including class-action lawsuits over health benefit claims leading to an $8.9 million settlement, Poppi's popularity continues to rise.  With PepsiCo's extensive distribution network and resources, Poppi is poised to expand its market reach further, solidifying its position in the functional beverage industry.​

This acquisition underscores PepsiCo's commitment to adapting to evolving consumer preferences and strengthening its portfolio with health-oriented brands, positioning itself to meet the growing demand for functional and better-for-you beverage options.​