PepsiCo buys viral 'healthier' soda brand Poppi in nearly $2 billion deal

NEW YORK, NEW YORK - JULY 26: A view of Poppi drinks at #BFE (Big Flavor Energy) "poppi hour" at Azul On the Rooftop at Hotel Hugo on July 26, 2022 in New York City. (Photo by Astrid Stawiarz/Getty Images for poppi)

DALLAS - PepsiCo has announced a deal to acquire Poppi, a Dallas-founded prebiotic soda brand known for its viral social media presence and gut-health benefits.

The acquisition strengthens PepsiCo’s position in the growing health and wellness beverage market.

PepsiCo buys Poppi: Billion-dollar deal

What we know:

PepsiCo announced Monday that it will acquire Poppi for $1.95 billion, according to a company statement. The deal includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion.

What is Poppi?

The backstory:

Poppi is a prebiotic soda marketed as a healthier alternative to traditional soft drinks. The beverage contains no more than five grams of sugar per serving and features ingredients like prebiotic fiber, fruit juice, and apple cider vinegar to support gut health.

The brand, which began in a Dallas kitchen, is now available at major retailers including Target, Kroger, Whole Foods, Costco, and Amazon.

Poppi currently offers 14 flavors, ranging from classic soda varieties like cherry cola and root beer to fruity options like raspberry rose and wild berry.

Poppi's Gen Z branding

Poppi has gained significant traction on social media, thanks to its influencer marketing strategy, giveaways, collaborations, and high-profile commercials.

Unlike most beverage brands, Poppi has more than 1 million followers across social media platforms.

The company’s recent Super Bowl commercial featured some of social media’s most-followed TikTok influencers.

Poppi also generated buzz by sending full-sized vending machines stocked with its sodas to 32 influencers.

Who founded Poppi? A Dallas success story

Local perspective:

Watch on TikTok

Poppi was co-founded by Allison Ellsworth and her husband Stephen Ellsworth, who developed the drink in their Dallas kitchen. The Dallas couple began selling their creation at a local farmers market when a Whole Foods buyer discovered it there, leading to its first major retail distribution.

"Allison and the Poppi team have built a magnetic brand that's ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth," said Ram Krishnan, CEO of PepsiCo Beverages North America. "We believe this incredible brand, paired with our commercial capabilities, will drive continued growth and innovation for years to come."

Poppi turned five years old on March 18.

What's the difference between probiotics and probiotics?

Dig deeper:

Probiotics are beneficial bacteria that support gut health, while prebiotics are nutrients that feed these good bacteria and help them thrive.

Which Shark invested in Poppi?

Ellsworth and her husband appeared on Shark Tank, securing an investment from entrepreneur Rohan Oza.

What they're saying:

"More than ever, consumers are looking for convenient, great-tasting options that fit their lifestyles and growing interest in health and wellness," said PepsiCo Chairman and CEO Ramon Laguarta. "Poppi is a great complement to our portfolio transformation efforts.""More than ever, consumers are looking for convenient, great-tasting options that fit their lifestyles and growing interest in health and wellness," said PepsiCo Chairman and CEO Ramon Laguarta. "Poppi is a great complement to our portfolio transformation efforts."