A month ago exactly, I shared a post on how Coca-Cola announced the launch of a new product called Simply Pop, a new prebiotic soda that is set to compete with Poppi and Olipop. Yesterday, PepsiCo Inc. announced it would acquire the soda brand Poppi for $1.95 billion.
Consumers are demanding healthier products, and PepsiCo is working to diversify away from its standard soda and snacks by making acquisitions of healthier brands.
The "healthy" soda category has been growing rapidly compared to standard sodas. Poppi aims to improve digestive health by using prebiotic fiber inulin, fruit juice, and apple cider vinegar, while its drinks have 5 grams of sugar or less per serving.
However, the health-promoting gut claims have been challenged in courts, which has made Poppi pivot its marketing strategy. Recognizing the risks associated with health claims, the brand has been shifting towards lifestyle marketing.
Interesting facts about Poppi:
- Started initially as an apple cider vinegar-based beverage company
- Have trademarks registered or pending on "Poppi", "Be Gut Happy, Be Gut Healthy", "Soda's Back", and "Soda's Back, But Better"
- In 2021, the soda startup closed a $13.5 million funding round backed by stars including the singers Ellie Goulding and Halsey, as well as NBA players Russell Westbrook and Kevin Love.
- In 2018, Mother Beverage (name used before Poppi) received an investment of $400K from Shark Tank investor Rohan Oza.