Yesterday, PepsiCo announced that it would be acquiring the popular prebiotic soda brand Poppi. The soda giant is purchasing one of two main competitors in the healthy soda sphere for a whopping $1.95 billion. It seems like the healthy soda world is about to change.
Poppi got its start under the name Mother Beverage in 2018 and received a $400,000 investment on Shark Tank to grow operations. In 2020, the company rebranded as Poppi to attract more millennials and Gen Z customers. Since then, Poppi has dominated the healthy soda game, forming partnerships with numerous celebrities and planting its product in stores across the country.
PepsiCo, on the other hand, is one of the biggest names in soda out there. With countless sugary sodas under its belt like Pepsi, Mountain Dew, Crush, and more — PepsiCo specializes in name-brand sodas and their diet twins.
This acquisition is making big news in the food and beverage industry. Here’s all you need to know as PepsiCo buys Poppi.
Has PepsiCo formerly acquired any other healthy soda brands?
Prebiotic sodas are on the rise, with many smaller brands popping up. This is PepsiCo’s first step into the healthy soda industry, if you don’t count diet soda.
“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,” said Chairman and CEO of PepsiCo, Ramon Laguarta in a press release. “Poppi is a great complement to our portfolio transformation efforts to meet these needs.”
In fact, this is the first time that a major soda conglomerate is acquiring a larger prebiotic soda brand. PepsiCo’s main competitor, The Coca-Cola Company, released its own healthy soda in February, Simply Pop Prebiotic Soda, under its Simply Beverages brand — yet, the popularity of this soda is not even close to that of Poppi.
PepsiCo does have experience acquiring other healthy drinks, though. In 2001, PepsiCo bought Gatorade, which competes with The Coca-Cola Company’s Powerade and Vitamin Water, but is the highest selling of all three sports drinks.
Once PepsiCo buys Poppi, will the Poppi formula change?
Although it’s unclear whether or not Poppi’s formula will change, the most likely answer is that it probably won’t.
“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,” said Allison Ellsworth, Co-Founder of Poppi.
Ellsworth’s words imply that the base formula of Poppi sodas will stay the same, but there will be new inventions and releases made possible by PepsiCo’s financial backing.
Additionally, when PepsiCo acquired Gatorade, there was no significant change in taste or consistency. Gatorade did release new products, such as the Gatorade Energy Bar and Gatorade Ice.
How are people online reacting to this acquisition?
As expected, most people online are unhappy.
One Reddit user commented in regards to Ellsworth’s statement about increasing Poppi’s reach: “Oh it will expand its reach alright, but sooner rather than later, its ingredients will need to change to meet the “demands” of the larger market as in more sugar and less vinegar.”
Another said, “Guess I’ll stop drinking that now, thanks.”
Time will only tell to see whether or not this acquisition is good for Poppi.