PepsiCo Nears $1.5 Billion Deal to Buy Poppi
PepsiCo Inc. is reportedly in advanced negotiations to acquire Poppi, a rapidly growing functional soda brand, in a deal valued at over $1.5 billion. According to sources familiar with the matter, the announcement could come as early as next week, although talks are still ongoing and could face delays.
The potential acquisition reflects PepsiCo’s broader strategy to pivot toward health-conscious consumers amid declining interest in traditional sugary sodas. Poppi, an Austin-based company co-founded by Allison and Stephen Ellsworth, has gained traction in the booming "functional soda" category with drinks that tout benefits like gut health, featuring prebiotics, probiotics, and added fiber.
PepsiCo had previously planned to launch its own functional beverage line under the name Soulboost, but scrapped the effort due to weak early signals. Now, rather than building from scratch, the beverage giant appears to be leaning into acquiring existing brands with proven market fit.
Poppi first rose to prominence in 2018 after securing investment from Rohan Oza of Cavu Venture Partners on Shark Tank. Since then, the brand has attracted celebrity backing from figures like Nicole Scherzinger and Ellie Goulding, and has become a staple on grocery shelves for health-minded consumers.
The functional soda space is outpacing traditional soda growth, with retailers like FreshDirect reporting over 60% year-over-year increases in sales driven by brands like Olipop and Poppi. In contrast, sales of legacy soft drinks have shown only marginal gains.
If finalized, this acquisition would mark another major step in PepsiCo’s health-focused acquisition streak. In late 2023, the company announced a $1.2 billion deal to acquire Siete Foods and moved to fully acquire Sabra Dipping Co., signaling a long-term commitment to better-for-you offerings.
“There’s a higher level of awareness in general of American consumers towards health and wellness,” PepsiCo CEO Ramon Laguarta said in a February earnings call — and this latest move seems to confirm it.
Neither PepsiCo nor Poppi have officially commented on the pending deal.
