Poppi’s Billion-Dollar Bubble: From 'Shark Tank' to PepsiCo’s Latest Acquisition
How Poppi achieved the American dream, one can at a time!
I first came across probiotic soda when I moved to America in early 2024. After a long run, I grabbed a drink from a bodega and decided to try what all the hype was about. Coming from Ireland—where trends usually hit a few years later—it felt like a glimpse into the future.
The idea that a soda could taste great while also being low in sugar and packed with probiotics? That was a win-win in my book. The category is a revelation for an industry that has long been linked to rising obesity rates and health concerns. And after that first sip, I was sold.
That soda? Poppi.
Since then, I’ve been picking one up most weeks, either post-workout or as a treat for myself or my girlfriend, my brother even ordered me some for my post-NYC marathon thirst quenching. These functional sodas have created a boom in the beverage aisle, where colourful cans promise more than just refreshment. Brands like Poppi, Olipop, Culture pop, and even Coca-Cola—who recently entered the space—are all competing in a category that’s skyrocketing. Whether or not it has peaked, one thing is clear: better-for-you sodas are here to stay, and the bigger players are taking notice.
From Farmers Markets to a Billion-Dollar Buyout
Poppi’s journey is the kind of startup success story that founders dream of. Back in 2017, husband-and-wife duo Allison and Stephen Ellsworth were whipping up apple cider vinegar-based sodas in their kitchen, selling them under the name “Mother” Beverage at local farmers markets. Their big break came in 2018 when they pitched on Shark Tank, where guest investor Rohan Oza—the branding mastermind behind Bai and Vitaminwater—offered them a $400,000 investment for a 25% stake.
From there, the brand rebranded to Poppi, embraced eye-catching, Instagrammable cans, and rapidly expanded into major retailers like Target, Whole Foods, and Walmart. With flavours like Doc Pop, Orange, Strawberry Lemon, and my favourite cherry limeade, the brand found a loyal audience looking for a healthier soda alternative.
The PepsiCo Play: A Strategic Sip
PepsiCo’s acquisition of Poppi for nearly $2 billion is a clear indication that soda giants are paying attention to changing consumer preferences. With demand for functional drinks skyrocketing, Pepsi’s move allows it to tap into a younger, health-conscious demographic.
"We’re beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy Poppi," said Rohan Oza, co-founder of CAVU Consumer Partners, which has also invested in beverage giants like Oatly and Bai.
Poppi vs. Olipop: The Battle for Soda 2.0
Poppi might have landed a massive payday, but its fiercest rival, Olipop, is right there with it. The brand recently raised $50 million in a Series C funding round, bringing its valuation to $1.85 billion—outpacing Poppi before the PepsiCo deal.
Olipop now leads the category in revenue, with annual sales surpassing $400 million in 2023, more than four times what Poppi made. It’s also the top nonalcoholic beverage brand in the U.S. by both dollar sales and unit growth, with one in four Gen Z consumers drinking it.
But while Olipop dominates in sales, Poppi took a different route—leaning into cultural moments, securing Super Bowl ad spots, and ultimately winning the backing of one of the world’s biggest beverage companies.
Not All Smooth Sipping: Poppi’s Legal Woes
Despite its meteoric rise, Poppi hasn’t been without controversy. In 2023, the company faced multiple class-action lawsuits over claims that its marketing exaggerated gut health benefits. The lawsuits argued that a single can contains only 2 grams of prebiotic fibre, far below what’s needed for meaningful gut health benefits. Consumers alleged they would need to drink four cans a day—offsetting any benefits due to added sugar content.
While Poppi has denied wrongdoing, the company settled for $8.9 million, with the agreement awaiting court approval. PepsiCo has not commented on how these legal challenges might impact the brand’s future.
What’s Next for Poppi?
As PepsiCo finalises the deal, Poppi’s future could take several paths. Will the beverage giant maintain its independent identity, as it did with SodaStream? Will it be folded into Pepsi’s broader portfolio? Or, like many acquired brands, will it end up fading into the background, lost among countless other products?
One thing’s for sure: functional sodas aren’t going anywhere and the American dream is still alive and well!
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