Pepsi Acquired Poppi

In March 2025, PepsiCo bought a smaller beverage company called Poppi in a deal worth about $1.95 billion.^[1] Poppi isn’t a traditional soda like Pepsi or Coke. Its drinks are made with apple cider vinegar and fruit juice and are promoted as “prebiotic,” and beneficial to “gut health.”^[2] Poppi is especially popular with younger consumers who want healthier options.^[3]

Companies like PepsiCo often buy other companies to grow and stay competitive. Here are four big reasons why Pepsi bought Poppi:

1. To Offer Healthier Drinks
   More people—especially young adults—are choosing drinks with less sugar and more health benefits. Buying Poppi helps PepsiCo meet that demand.

2. To Stay Ahead of the Competition
   Pepsi wants to be a leader in the new “functional beverage” market, which includes drinks that do more than taste good (like helping with digestion or energy). Buying Poppi helps PepsiCo grow in that area faster than building a brand from scratch.

3. To Reach New Customers
   Poppi is already popular with Gen Z consumers. Pepsi hopes it can use Poppi’s appeal to connect with new customers that traditional sodas might not attract.

4. To Grow Faster
   Poppi was already growing fast, and PepsiCo has the money, marketing, and shelf space to help it grow even faster around the world.^[4]