Health Beverage Battle: Pepsi Acquires Probiotic Soda Brand

“Epoch Times, March 18, 2025 – Following the introduction of Simply Pop, a probiotic soda by Coca-Cola, PepsiCo announced on Monday (March 17) that it will acquire the probiotic soda brand Poppi for $1.95 billion to enter the field of ‘healthy soda’.

In the past twenty years, overall consumption of sodas in the US has been declining. As part of a shift towards fitness and lifestyle products, an increasing number of young Americans are turning to healthier sodas and energy drinks. In the past five years, probiotic sodas promoted by industry newcomers Poppi and Olipop have gained favor among health-conscious consumers.

PepsiCo’s rival Coca-Cola has already launched a probiotic soda named ‘Simply Pop’, flavored with fruit juice and vitamins, claiming to ‘support gut health’ to compete with the growing popularity and sales of smaller competitors Poppi and Olipop.

Other players in the market such as energy company Celsius Holdings and Keurig Dr Pepper have also set their sights on this market by acquiring smaller manufacturers of energy and health drinks.

PepsiCo has raised prices multiple times, with weakened demand for sodas and snacks, leading to an expected soft annual profit. The acquisition of Poppi elevates PepsiCo’s influence in the field of health drinks.

Probiotic sodas have become the fastest-growing category in the US carbonated soft drink (CSD) sector as consumers are more inclined to purchase drinks that focus on gut health.

JPMorgan analyst Andrea Teixeira has stated that this deal will help PepsiCo ‘establish a foothold in the fast-growing ‘Modern’ soda sector and strengthen its carbonated beverage product portfolio that has been dominated by Coca-Cola and Keurig Dr Pepper for years’.

Poppi was founded in 2018 by Allison and Stephen Ellsworth, while Olipop was also established in the same year. Poppi’s formula includes apple cider vinegar, probiotics, and only 5 grams of sugar.

PepsiCo stated that the deal with Poppi includes an expected $300 million tax benefit, with a net purchase price of $16.5 billion. The company did not disclose other terms of the transaction.”