PepsiCo Acquires Poppi in Shift Towards Healthier Beverages
PepsiCo, known for its sugary carbonated drinks, has made a significant move in the soda category by acquiring Poppi, a brand that focuses on functional ingredients and lower sugar content. This purchase reflects the changing consumer preferences towards healthier options in the beverage industry.
Ramon LaGuarta, PepsiCo’s chairman and CEO, stated that the acquisition of Poppi aligns with the company’s strategy to expand its portfolio with brands that cater to the evolving health and wellness trends among consumers. LaGuarta emphasized the importance of offering convenient and great-tasting options that meet the needs of modern lifestyles.
Poppi gained recognition after appearing on Shark Tank in 2018 and has grown its presence over the years, especially during the pandemic. PepsiCo’s decision to acquire Poppi comes after the shelving of its own better-for-you soda brand, Soulboost, indicating a shift towards acquiring established competitors rather than developing new products.
Unlike Coca-Cola, which opted to launch a prebiotic soda under its Simply juice brand, PepsiCo has been actively acquiring trendy brands with healthier ingredients to diversify its portfolio. The purchase of Poppi follows PepsiCo’s acquisition of Siete Foods, a popular tortilla chip maker known for its clean-label ingredients.
Poppi’s formula includes sparkling water, apple cider vinegar, and prebiotics like agave inulin, with a low sugar content of 5 grams per can. The brand offers a variety of flavors, such as Orange Cream, Root Beer, and Cherry Limeade, catering to consumer preferences for unique and healthier beverage options.
Despite its health claims, Poppi has faced scrutiny, including a class action lawsuit questioning its nutritional value. The brand’s marketing campaigns, including a controversial Super Bowl ad and influencer giveaways, have sparked discussions about the authenticity of its health claims.
Christopher Doering contributed to this report.