PepsiCo Purchased Poppi for $1.95 Billion

A few years ago, Poppi wasn’t sitting on grocery store shelves.

It wasn’t trending on TikTok and even called Poppi.

It was just a homemade soda experiment in a kitchen to fix gut health.

Fast forward a few years, and it's now one of the fastest-growing beverage brands in the US. It’s everywhere and has a cult-like following on social media.

And now, Pepsi just bought it.

Why would a soda giant buy a brand that started in a home kitchen?

And how will Pepsi market Poppi without ruining what made it special?

Let’s break it all down.

PepsiCo:
The Soda Giant That Adapts to Trends

PepsiCo is one of the biggest food and beverage companies in the world. But Pepsi isn’t just about soda anymore. It evolves with time.

For decades, Pepsi and Coca-Cola ruled the soda world. But over time, people started drinking less soda, especially the sugary ones.

Instead, they wanted:

• Healthier drinks (low-sugar, natural ingredients, active beverages)

• More variety (energy drinks, teas, and flavored waters)

• Brands they trust (authenticity matters more than ever)

PepsiCo saw this shift and started buying smaller, healthier brands to keep up.

Some examples include:

• Gatorade (sports drinks): A Pepsi-owned brand for athletes.

• Bubly (sparkling water): Competing with LaCroix and Topo Chico.

• KeVita (probiotic drinks): Pepsi’s first step into gut-health drinks before Poppi.

Buying Poppi might be another drink in Pepsi's portfolio, but it’s about staying relevant in an industry moving away from traditional soda.

Poppi:
The Soda Disruptor with a Health Twist

Poppi started as a homemade drink by Allison Ellsworth. She struggled with gut health and found that apple cider vinegar helped her digestion.

But drinking it straight was not satisfying. So, she and her husband, Stephen, created a lightly carbonated soda with apple cider vinegar, prebiotics, and real fruit juice.

They first sold their drinks at farmer’s markets in Texas, and customers loved them.

Then, in 2018, they went on Shark Tank, where Rohan Oza, a branding expert, invested $400,000. That moment changed everything.

And soon, some things boosted Poppi:

1. The TikTok effect: Poppi used viral marketing to grow fast, with TikTok influencers promoting it as THE cool, healthy soda.

2. Bright, fun packaging: Unlike the traditional boring health drinks, Poppi’s branding was bold and playful, making it Instagram-worthy.

3. Celebrity love: Big names like Jennifer Lopez, Kylie Jenner, and Hailey Bieber were seen drinking Poppi, giving it even more hype.

4. Retail expansion: Poppi went from Whole Foods to Target, Walmart, and 30,000+ stores, making it a mainstream product.

Poppi’s success showed that young consumers still want soda just without the guilt. That’s exactly why Pepsi wanted to buy them.

Why does this matter?

Pepsi and Poppi represent two different worlds:

• PepsiCo is a giant trying to keep up with changing trends.

• Poppi is a disruptor who built a cult following in just a few years.

By buying Poppi, PepsiCo is getting a new audience that loves health-focused, trendy brands. That is how big brands survive.

They buy into the future instead of fighting against it.

Is Pepsi and Poppi A Perfect Match?

On the surface, PepsiCo and Poppi might seem complete opposites - one is a legacy soda giant, and the other is a young, trendy startup.

But when you look deeper, it’s clear why Pepsi made this move. Poppi is what Pepsi needs to stay relevant in the future of beverages.

STP Analysis

Segmentation

» Pepsi - Serving Everyone

Pepsi isn’t just for cola drinkers. Over the years, it has expanded into:

• Soft drinks: Pepsi, Mountain Dew, 7UP (in some markets)

• Sports drinks: Gatorade

• Energy drinks: Rockstar, AMP

• Healthy options: Bubly (sparkling water), KeVita (probiotics)

By segmenting its audience, Pepsi ensures it has something for every type of consumer.

» Poppi - The Health-Conscious Crowd

Poppi is positioned as a functional beverage. It targets those who:

• Care about gut health and digestion.

• Want a fun, carbonated drink without artificial ingredients.

• Choose low-sugar but still want great taste.

Unlike traditional soda, Poppi is part of the wellness movement.

Targeting

» Pepsi - The Mass Market Strategy

Pepsi focuses on mainstream consumers who want refreshments and variety.

Their target groups include:

• People who drink soda regularly (Pepsi, Mountain Dew)

• Health-conscious consumers (Bubly, KeVita)

• Athletes (Gatorade)

• Energy drink lovers (Rockstar)

Pepsi’s goal is simple - no matter what people's preferences are, keep them drinking PepsiCo products.

» Poppi - Millennials & Gen Z

Poppi’s biggest fans are younger consumers, especially:

• Millennials (ages 27–42):
  They grew up drinking soda but now prefer healthier alternatives.

• Gen Z (ages 12–26):
  They want trendy drinks that will also fit their wellness-focused lifestyles.

Positioning 

» Pepsi - A Refreshing Brand for Every Occasion

Pepsi’s brand is built on fun, excitement, and refreshment.

Their advertising focuses on lifestyle and entertainment, often using celebrities, sports sponsorships, and bold marketing campaigns.

» Poppi - A Guilt-Free, Trendy Soda

Poppi is positioned as the modern soda alternative - fun, tasty, and good for you. Instead of competing with traditional sodas, Poppi challenges them by saying:

• We’re soda, but better.

• We’re fun and flavorful without the junk.

This approach makes Poppi feel cool, new, and exciting - something Pepsi’s traditional sodas don’t always have.

Why Pepsi Needs Poppi?

Now, let’s connect the dots. Pepsi didn’t buy Poppi just because it was growing. It bought Poppi because it fills a giant gap in Pepsi’s portfolio.

1. Pepsi Needs a Stronger Health-Focused Brand

• While Pepsi owns Bubly and KeVita, neither has Poppi's cultural pull.

• Bubly is just sparkling water, and KeVita isn’t as mainstream.

• On the other hand, Poppi is a soda replacement - something Pepsi can scale fast.

2. Poppi Gives Pepsi Access to a Younger Audience

• Pepsi has struggled to connect with Gen Z like smaller brands do.

• Poppi is already a social media hit, especially on TikTok where Pepsi isn’t as strong.

• By acquiring Poppi, Pepsi gets a direct line to younger people without building that audience from scratch.

3. The Functional Beverage Market is Booming

• The functional drinks industry (gut health, energy, immunity) is growing faster than traditional soda.

• Poppi’s apple cider vinegar taps into this trend perfectly.

• By adding Poppi, Pepsi is future-proofing its business.

4. Poppi Has Huge Upside with Pepsi’s Distribution

• Poppi is in 30,000+ stores now, which is impressive for an independent brand.

• But with Pepsi’s global reach, Poppi could soon be available everywhere - in gas stations, vending machines, and even fast-food chains.

Pepsi is buying a cultural movement. Poppi’s branding, audience, and functional benefits make it the perfect fit for the future of beverages.

Instead of launching a competitor, Pepsi is buying into the trend and using its massive resources to scale Poppi even faster.

Pepsi’s Marketing Strategy for Poppi

Now that Pepsi has acquired Poppi, the big question is: How will they market it?

Pepsi didn’t just buy Poppi for its product. They bought it for its brand, audience, and future potential. Instead of changing what made Poppi special, Pepsi wants to scale it while keeping its cool, health-conscious image.

Here’s how they are doing it:

1. Poppi’s fun, bold branding, and social media-driven marketing will remain untouched.

2. Poppi will be stocked in more stores, gas stations, vending machines, and convenience stores.

3. Pepsi’s massive ad budget will push Poppi into mainstream awareness.

4. Poppi will expand beyond the U.S., reaching Pepsi’s 200+ international markets.

5. New flavors, limited editions, and spin-off products will keep Poppi fresh and exciting.

6. Pepsi will position Poppi as the go-to gut-health soda, competing with kombucha and wellness drinks.

Pepsi is handling Poppi differently than its past acquisitions. Instead of forcing it into a corporate mold, they want to scale it to new heights with its uniqueness.

What Pepsi is doing right:

• Keeping Poppi’s branding, tone, and positioning intact.

• Using Pepsi’s massive distribution to make Poppi more accessible.

• Investing in big-budget marketing while keeping Poppi’s organic social presence strong.

What Pepsi needs to be careful about:

• Not losing Poppi’s authenticity: If Pepsi makes it feel too corporate, the loyal fanbase might turn away.

• Avoiding price changes: If they try to cut costs by changing ingredients, it could hurt the brand’s reputation.

If Pepsi succeeds, Poppi could become the next billion-dollar beverage brand—all while keeping its identity as the “cool, healthy soda.”

Conclusion

Poppi didn’t win because it had the biggest budget or the most powerful connections.

It won because it found a gap in the market, told a story, and used modern marketing strategies to grow fast. Now, with Pepsi’s backing, Poppi has the chance to become a household name but the real lesson here isn’t just about Poppi.

It’s about how small brands can win today. Follow the above-given strategy. Then you don’t need to be a billion-dollar company to beat the big players.

Pepsi didn’t just buy Poppi’s product. They bought its brand, its community, and its potential. That’s the power of modern marketing done right.