PepsiCo Acquires Poppi: A $1.95 Billion Deal
On March 17, 2025, PepsiCo made headlines with its acquisition of the rapidly expanding prebiotic soda brand, Poppi. As reported by PR Newswire, the global food and beverage leader has entered into an agreement to purchase Poppi for an impressive total of $1.95 billion, which comprises $300 million in anticipated cash tax benefits. Ultimately, this amounts to a net acquisition cost of $1.65 billion.
The Evolution of Poppi
Poppi originated as a small-batch beverage known as ‘Mother Beverage’ before gaining fame on the reality television show Shark Tank in 2018. This pivotal moment led to its rebranding as Poppi, and the brand has since experienced a meteoric rise in popularity, establishing a dedicated following among health-conscious consumers.
Founded by Allison and Stephen Ellsworth, Poppi prides itself on offering a functional, low-calorie soda made with prebiotic fibers, natural fruit juices, and apple cider vinegar, all while keeping sugar content to a minimum—under five grams per serving. This recipe has set Poppi apart in an industry often saturated with sugary drinks.
Consumer Reactions to the Acquisition
The announcement of PepsiCo’s acquisition has sparked concern among Poppi enthusiasts on social media. On the same day, the X account @Dexerto shared:
“PepsiCo is acquiring Poppi for nearly $2 billion”
In response, numerous fans took to the platform to express their apprehensions:
“damn now its ruined.”
“Now it’ll go from 5 ingredients to 37 ingredients.. acquisitions always ruin a product,” a fan complained.
“And just like that, it became unhealthy,” an X user commented.
“They better not use harmful ingredients now that they acquired it. Leave it as is!” another fan exclaimed.
“Aw man! That was one of the better and more healthy soda brands. Now, there’ll be nothing left,” a disappointed fan added.
Insights from PepsiCo Leadership
In light of the acquisition, Ramon Laguarta, Chairman and CEO of PepsiCo, shared insights into the strategic importance of this purchase:
“We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers.”
Laguarta emphasized the growing consumer demand for healthier options, stating:
“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.”
Future Prospects for Poppi
Allison Ellsworth, Co-Founder of Poppi, expressed her enthusiasm regarding the acquisition, marking it as a significant milestone for the brand:
“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. I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible.”
Conclusion
As Poppi approaches this new phase under PepsiCo’s ownership, significant changes could arise. While the brand was conceived to challenge conventional soda formulas by reducing sugar without sacrificing flavor, the impact of PepsiCo’s involvement remains to be seen. Staying true to its roots while navigating a larger corporate structure will be key for Poppi’s future success.