PepsiCo has officially entered the prebiotic soda market with the completion of its $1.95 billion acquisition of Poppi, a brand that has contributed to the growth of the functional beverage category. The functional beverage market is projected to reach $62 billion in sales by 2027, up from $50 billion in 2022.
CEO of PepsiCo Beverages U.S., Ram Krishnan, expressed excitement about the acquisition, highlighting Poppi’s rapid growth, strong consumer engagement, and unique functional positioning. He emphasized the potential for further growth through PepsiCo’s capabilities.
Poppi’s marketing approach, focusing on community and culture, has resonated with Gen Z and millennial audiences through social media, TikTok campaigns, and influencer partnerships. The recent launch of Poppi’s new flavor, Alpine Blast, with its citrus taste and 55mg of caffeine, positions the brand to compete with PepsiCo’s Mountain Dew.
Exploring the Gaming World
Poppi made its foray into gaming with the introduction of Alpine Blast, tapping into a space traditionally associated with soda brands like Mountain Dew. The brand collaborated with Fortnite studio Creator Corp to launch an exclusive mini-game and engaged Twitch streamer Cody “Clix” Conrod to amplify the campaign.
Additionally, Poppi created Alpine Blasters, a retro arcade-style game that garnered significant plays and engagement. These gaming activations allowed the brand to connect with different audiences and spark intergenerational conversations.
Cultural Collaborations and Events
Alongside gaming initiatives, Poppi released a limited-edition merchandise collection and hosted events, including a Coachella-adjacent gathering featuring Post Malone. The brand’s BBQ-style kickback event attracted influencers, creators, and lucky fans who won a trip to attend.
Following a controversial Super Bowl ad and stunt campaign, Poppi listened to feedback and focused on building authentic relationships with its community. The brand aims to leverage traditional media and social storytelling to engage with consumers on a meaningful level.