PepsiCo is making a bold move in the functional beverage space with its nearly $2 billion acquisition of Poppi, a prebiotic soda brand that gained national attention after appearing on Shark Tank. As consumer demand for healthier drink options continues to rise, the deal aligns with PepsiCo’s strategy to expand its “better-for-you” offerings. With Poppi’s rapid growth and strong retail presence, the acquisition is expected to strengthen PepsiCo’s position in the competitive beverage market while tapping into the increasing popularity of gut-health-focused products.
PepsiCo Expands Health-Focused Portfolio with $1.7 Billion Poppi Purchase
PepsiCo Inc. announced on Monday, March 17th, that it will acquire Poppi, a rising soft-drink brand known for its viral social media presence and Shark Tank success, in a deal valued at approximately $1.7 billion. The acquisition aligns with PepsiCo’s strategy to expand its portfolio of “better-for-you” beverages, as Poppi offers prebiotic sodas with less than 5 grams of sugar per serving.
At 4.2 times Poppi’s $391 million in sales over the past year, PepsiCo’s investment underscores its confidence in the functional beverage market. “The deal makes sense to us because we believe PepsiCo’s North American beverage business can provide another boost to Poppi’s distribution and because we believe ‘functional soda’ is becoming a mainstream segment of the market with sustainable appeal,” said TD Cowen analyst Robert Moskow via MarketWatch.
The acquisition is part of PepsiCo’s broader push into the health-conscious food and beverage space. In recent months, the company has spent nearly $3 billion on “better-for-you brands,” including a $1.2 billion deal for the snack company Siete in January.
How Poppi Went from ‘Shark Tank’ to a Super Bowl-Worthy Brand
Founded by husband-and-wife duo Stephen and Allison Ellsworth in Austin, Texas, Poppi began with a mission to promote digestive health through its prebiotic soda infused with apple cider vinegar.
The brand is among the most successful ventures to emerge from ABC’s Shark Tank, which recently concluded its 16th season. The reality show, known for its high-stakes investment pitches, features a panel of prominent venture capitalists, including Mark Cuban and Barbara Corcoran.
Originally introduced as Mother Beverage, the brand made its Shark Tank debut in 2018. On the show, investor Rohan Oza agreed to purchase a 25% stake for $400,000. Oza later played a key role in rebranding the company as Poppi, with his investment firm, Cavu Consumer Partners, leading a $25 million funding round in 2022.
By 2024, Poppi had grown significantly, earning a coveted Super Bowl ad slot—a milestone it repeated this year. Following its Shark Tank appearance, the brand attracted multimillion-dollar investments from high-profile celebrities, including Jennifer Lopez, Billie Eilish, and Mila Kunis, while also gaining exposure on The Drew Barrymore Show.
Other Notable ‘Shark Tank’ Success Stories
In addition to Poppi, several brands that debuted on Shark Tank have gone on to achieve remarkable success. Among them is Bombas, a sock company that secured a $1 million investment on the show in 2014 and has since reported $1.3 billion in cumulative sales.
Another standout is Ring, the smart doorbell company that appeared on Shark Tank in 2013. Although it didn’t land a deal on the show, it later received backing from basketball legend Shaquille O’Neal before being acquired by Amazon for approximately $1 billion in 2018.
Scrub Daddy, a sponge brand introduced on the show in 2012, has also flourished, reporting total sales of $925 million to date.
Source: MarketWatch