Key takeaways for operators
- Poppi has built a strong following, particularly among younger, health-focused consumers.
- With PepsiCo’s distribution power, Poppi is likely to become more widely available, making it easier for vending operators to stock.
- The “better-for-you” beverage trend continues to gain traction. Poppi’s success and PepsiCo’s commitment signal enduring consumer demand for sodas with health benefits.
- Premium functional beverages, like this fast-growing prebiotic soda brand, can command higher price points, which can allow vending operators to increase their margins.
- Bundled deals and promotions are possible. PepsiCo may offer incentives for operators to carry Poppi alongside other Pepsi products.
Why it matters: This acquisition signals a shift toward functional beverages in mainstream distribution. Stocking Poppi could attract health-conscious customers, increase sales and differentiate vending offerings in an evolving beverage market.
PepsiCo has signed a definitive agreement to acquire Poppi, a fast-growing prebiotic soda brand, for $1.95 billion. The deal includes $300 million of anticipated cash benefits for a net purchase of $1.65 billion.
Poppi is part of the “functional soda” segment, a category of “better-for-you” carbonated beverages. Poppi contains prebiotics, fresh juice and apple cider vinegar to produce a low calorie soda with less than 5 g of sugar per serving. The brand was launched in 2015 and developed a loyal fan base, particularly after its rebranding following its appearance on Shark Tank. The brand was founded by Allison and Stephen Ellsworth and funded by Cavu Consumer Partners, the company co-founded by Rohan Oza, guest shark on ABC's Shark Tank, and the funder of Poppi until this acquisition.
What they are saying
“As we look to reorient our portfolio offerings to address white space consumer needs, the poppi brand’s unique intersection with wellness and culture is a perfect addition to our portfolio,” said Ram Krishnan, CEO, of PepsiCo Beverages U.S., in a release. “We are big fans of the poppi brand movement and believe this incredible brand, paired with our commercial capabilities, will drive continued growth and innovation for years to come.”
“When I created poppi in our kitchen, it was fueled by a desire to create a better-for-you soda,” said Allison Ellsworth, co-founder of Poppi, in a release. “We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people — and I know they will honor what makes poppi so special while supporting our next phase of growth and innovation.”
Read more about functional beverages on VendingMarketWatch.com
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Linda Becker | Editor-in-Chief
Linda Becker is editor-in-chief of Automatic Merchandiser and VendingMarketWatch.com. She has more than 20 years of experience in B2B publishing, writing, editing and producing content for magazines, websites, webinars, podcasts, newsletters and eBooks, primarily for manufacturing and process engineering audiences. Since joining Automatic Merchandiser and VendingMarketWatch.com, Linda has developed a new appreciation for the convenience services industry and the essential role it plays. She is dedicated to serving readers by covering the latest news in the vending, office coffee service and micro market industry. She can be reached at 262-203-9924 or [email protected].
