0 comments
The drinks giant PepsiCo has purchased Poppi, a prebiotic soda startup company first founded in 2018. It is part of the company’s efforts to attract Gen Z customers.
It looks as though Pepsi is entering the prebiotic soda market, a particularly attractive sector for Gen Z consumers.
In a statement released this week, PepsiCo announced it was purchasing Poppi, a prebiotic soda startup company that was founded in 2018. Poppi boasts a range of fourteen low-sugar, prebiotic-packed sodas, including flavours like Cream Soda, Doc Pop and Strawberry Lemon, among others.
PepsiCo has purchased the company for $1.65 billion USD, and will be adding its product line to an impressive portfolio of brands. The beverage giant owns Mountain Dew, Starbucks, Tropicana, Schweppes, Doritos, Lays, 7UP and more.
Poppi will be the first prebiotic soda brand to fit under Pepsi’s label, which is important considering its direct competitor Coca-Cola recently unveiled its own version called Simply Pop.
Ram Krishnan, CEO of PepsiCo Beverages US, said in a press release that Poppi’s focus on ‘wellness and culture’ is a ‘perfect addition’ to the company’s portfolio. ‘We look to reorient our offerings to address white space consumer needs,’ he added.
Poppi’s drinks are made using a combination of prebiotics, fruit juice and apple cider vinegar, boasting only 5g of sugar per serving. The company has seen rapid growth over the past five years, appealing to Gen Zers who are more health-focused and want to shift away from traditional soda drinks.
A quick browse through Poppi’s official website shows an obvious flair for marketing and intentional design that looks to appeal to younger consumers. The brand is also acutely aware of influencer marketing; Poppi sent entire vending machines to TikTokers to promote the brand during the Super Bowl, for example.
It caused controversy and outrage with some content creators – but it ultimately helped to promote the brand name and increase awareness.
The company made over $500 million USD in sales in 2024 alone, leading its market niche and paving the way for other brands to directly appeal to Gen Zers.
