PepsiCo has acquired prebiotic soda brand Poppi for $1.95 billion (£1.54 billion), aiming to strengthen its presence in the growing functional beverage market. The deal includes $300 million (£237 million) in anticipated cash benefits, bringing the net purchase price to $1.65 billion (£1.3 billion).
Austin-based Poppi, co-founded by Allison Ellsworth, gained traction after a 2018 appearance on Shark Tank led to investment and rebranding. The brand, known for its fruit-flavoured prebiotic sodas, will leverage PepsiCo’s distribution network to expand further.
Despite its success, Poppi has faced legal challenges. In 2023, multiple class-action lawsuits alleged misleading health claims. The company denied wrongdoing but removed “gut health” references from its packaging and recently agreed to an $8.9 million (£7 million) settlement. A court hearing is scheduled for May.
PepsiCo’s stock rose nearly 2% following the announcement.