PepsiCo went with its gut and purchased the prebiotic soda brand Poppi, a move that marks the company’s expansion into “better-for-you offerings.” PepsiCo announced they would buy Poppi for $1.95 billion dollars, March 14. This purchase reflected PepsiCo’s concern that the traditional soda market is shrinking, as people become more aware of high sugar and calorie content, seeking healthier alternatives. In addition, PepsiCo hopes to stay competitive in the quickly growing alternative soda market by going up against popular beverages such as Ollipop, according to usatoday.com.
Poppi is a prebiotic soda that contains fibers beneficial to the gut. There is some evidence that prebiotics have benefits for a healthier gut lining, improved insulin sensitivity, and increased feelings of fullness. Humans cannot digest these fibers, but they do feed the gut’s beneficial microbes. Last summer, a class action lawsuit settled against Poppi for $8.9 million, since the plaintiffs claimed the soda does not have enough prebiotic fiber to have any meaningful benefit, according to usatoday.com. Critics of the soda said that people would have to drink four cans of Poppi each day to realize any health benefit and, in doing so, would consume an abundance of sugar that would negate any positive effects, according to The New York Times.
United States (US) dietary guidelines recommend consuming 28 grams of fiber per day, but most Americans fall short of this goal. Many doctors do not recommend prebiotic soda and say all you need is a healthy diet. A medium apple, a cup of cooked broccoli, or a cup of steel cut oatmeal each have five grams of fiber, which is more than a can of Poppi, containing only two grams. Doctors say if people are concerned about their microbiome, vegetables are the best cure, according to The New York Times.
Prior to the purchase of Poppi, PepsiCo had an annual revenue of $92 billion dollars. Last year, Poppi boasted $500 million dollars in sales. PepsiCo hopes that expanding their brand with Poppi will attract new customers and absorb consumers already loyal to prebiotic soda, according to usatoday.com. Mr. Ramon Laguarta, Chairman and CEO of PepsiCo, talked about bringing in a healthier soda option.
“We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers,” Mr. Laguarta said, according to pepsico.com. “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.”
Poppi contains more natural ingredients and less sugar than Pepsi. Poppi blends organic agave, apple cider vinegar, and Stevia, while Pepsi ingredients include artificial sweeteners, high fructose corn syrup, and caffeine. A can of Pepsi costs between $0.89 and $1.25, while a can of Poppi costs between $2.29 and $2.49, according to retailbrew.com. Mrs. Allison Ellsworth, Co-Founder of Poppi, commented on how much Poppi has grown.
“When I created Poppi in our kitchen, it was fueled by a desire to create a better-for-you soda,” Mrs. Ellsworth said, according to pepsico.com. “We never imagined how many people we could reach through hard work, determination, and a clear mission to create a functional soda that stands the test of time.”
Featured Image by Gabrielle Arredondo ’27
