PepsiCo Snaps Up Poppi in $1.95B Deal

PepsiCo said Monday it's acquiring the prebiotic soda brand Poppi for $1.95 billion. The acquisition gives PepsiCo a fast-growing brand in the popular functional beverage category, the AP reports. Allison Ellsworth, the co-founder of Austin, Texas-based Poppi, said the combination with PepsiCo will expand Poppi's reach. Ellsworth developed Poppi—then known as Mother Beverage—in her kitchen in 2015 because she loved soda but was tired of the way it made her feel. She mixed fruit juices with apple cider vinegar, sparkling water, and prebiotics and sold the drink at farmer's markets. The brand took off in 2018 when Ellsworth and her husband pitched it on Shark Tank.

"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," Ellsworth said in a statement. Sales of prebiotic sodas from companies like Poppi and Olipop have surged in recent years as consumption of other sodas has fallen, CNBC reports. But it hasn't all been smooth sailing for Poppi. Last summer, a class-action lawsuit was filed against the brand by a consumer who said its products don't improve gut health as much as their marketing suggests. According to court filings, the suit was settled Friday for $8.9 million.

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