PepsiCo buys Poppi for $1.6B amid health and wellness boom

Hold up, soda fans! There’s a new twist in the beverage world. PepsiCo is buying Poppi, the prebiotic soda brand that’s been buzzing around. The price tag? A cool $1. 6 billion.

Yep, you read that right. Billion, with a “b. ”

Why Poppi? Why Now?

Why is PepsiCo dropping so much cash on this Austin-based brand? Simple: People are thirsty for healthier options. Think less sugar, more… gut-friendly stuff.

PepsiCo’s CEO, Ramon Laguarta, says Poppi fits right into what folks want these days. More choices, especially when it comes to health and wellness.

PepsiCo already has the classics like Mountain Dew and Gatorade. They’re adding a soda that’s trying to be good for you. Smart move?

Poppi’s Story: From Kitchen to Big Leagues

Here’s a fun fact. Poppi started in a Dallas kitchen. Husband and wife team, Stephen and Allison Ellsworth, were experimenting with flavors. They sold their concoctions at a farmer’s market.

Next thing you know, they’re on Shark Tank! Investor Rohan Oza (the guy behind Vitamin Water) jumped in with $400,000 for a piece of the pie. He even helped them rebrand from “Mother Beverage” to the catchy “Poppi. ”

You can find Poppi in Target, Costco, Whole Foods… everywhere!

Not Always Smooth Sailing

It hasn’t all been fizzy and fun. Poppi faced a lawsuit claiming their health benefits were overblown. The lawsuit said you’d need to drink a ton of Poppi for any real prebiotic effect, and all that sugar would cancel it out.

Remember that Super Bowl commercial and those vending machines for influencers? Some folks thought that money could’ve been used better, like donating to schools.

The Battle for the Gut

Poppi isn’t the only player in this game. OLIPOP is another popular prebiotic soda. They were valued at a whopping $1. 85 billion earlier this year.

It’s a whole new soda war. But this time, it’s about what’s good for your gut.