Pepsi won’t be upstaged.
What’s happening: The CPG conglomerate acquired prebiotic soda maker poppi for $1.95B.
Poppin’ off. Marketed for gut health, better-for-you soft drink maker poppi had a massive year, surpassing $500M in sales and securing a Super Bowl commercial.
More importantly, business keeps rising, with retail sales through February up 122%.
Better together. Per PepsiCo CEO Ramon Laguarta, better-for-you soda reflects evolving tastes.
“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. poppi is a great complement to our portfolio transformation efforts to meet these needs.”
Already feeling the effects of “higher levels of awareness”—and preempting new regulation on junk food—PepsiCo has made other major investments to diversify.
- PepsiCo bought a $550M stake in better-for-you energy drink Celsius in 2022.
- It acquired grain-free Mexican-American snack brand Siete Foods for $1.2B.
- It paid $244M to acquire full ownership of hummus and dips company Sabra.
Soda wars. Despite claims its benefits are overstated, low-sugar, functional soda is a gold rush, with Coca-Cola launching its own, OLIPOP reaching a $1.85B valuation, and countless copycats vying for shelf space.
Punchline: While poppi is still an indulgence, it is better for you than a Pepsi. Uncertain what the future will bring, PepsiCo now owns that narrative.
