PepsiCo has acquired the prebiotic soda brand Poppi for $1.65 billion to enter the booming functional beverage market, which is growing rapidly among health-conscious consumers. This strategic purchase adds 14 low-sugar, prebiotic sodas to Pepsi's extensive portfolio. The move is a direct response to Coca-Cola's recent entry into the sector with its brand Simply Pop, as Pepsi aims to capture new consumer demands. With U.S. sales of functional beverages increasing by 54% to $9.2 billion, Poppi's successful marketing and sales strategy has positioned it well for growth.
PepsiCo's recent acquisition of Poppi signals a strategic move into the booming prebiotic beverage market, dominated by health-conscious consumers seeking alternatives to traditional soda.
Ram Krishnan stated, 'As we look to reorient our portfolio offerings to address white space consumer needs, Poppi's unique intersection with wellness is a perfect addition.'
The functional beverage market has surged, with U.S. sales growing 54% to $9.2 billion from March 2020 to March 2024, underscoring a significant shift in consumer preferences.
Poppi has positioned itself effectively in this market, generating over $500 million in sales in 2024, leveraging influencer marketing to attract its youthful customer base.
Collection
[
|
...
]