PepsiCo is entering its prebiotic era.
The company announced March 17 that it has acquired the prebiotic soda Poppi—which gained popularity after Shark Tank’s Rohan Oza invested in the brand—for $1.65 billion. Yes, you read that number correctly.
“We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers,” PepsiCo’s Chairman and CEO Ramon Laguarta said in a press release. “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 founder Allison Ellsworth said that she and cofounder Stephen Ellsworth created the “better-for-you-soda” in 2015 in their kitchen. As she explained in the press release, they had “a clear mission to create a functional soda that stands the test of time.”
“We believe Poppi is the soda that will be embraced for generations to come,” Allison continued. “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.”
She added, “I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible.”
Olivia Munn—an investor in the brand—is certainly glad she took the risk. “After my very first @drinkpoppi I called the founders and asked to be an early investor,” she captioned a March 17 Instagram post. “What a ride.”
Though, the ride hasn’t been without it’s speed bumps. In June 2024, the brand was served a class-action complaint by a California woman claiming Poppi was falsely advertising its health benefits and prebiotic functions. The soda brand reached a $8.9 million settlement and is waiting on the court’s approval.
Then, last month, its Super Bowl campaign of delivering influencers personal vending machines received criticism in response to its $25,000 price tag. Plus, critics fired back at the machines only being delivered to influencer homes and not hospitals or schools.
Shortly after, cofounder Allison apologized in a Feb. 10 TikTok.
“This vending machine campaign was put into place to bring awareness to the biggest soda moment of the year—the Super Bowl,” she said at the time. “We wanted to share Poppi with creators across the U.S. who were hosting Super Bowl parties for their friends and their family.”
She continued, “Creator marketing has always been a staple of Poppi’s brand since we launched in 2020. But I know that it’s you, our community, that has been the biggest part of our success.”
