PepsiCo (PEP) has a goal for Poppi to be its latest billion-dollar brand. The disclosure came as part of PepsiCo (PEP) executive Ram Krishnan’s presentation at an event hosted by Beverage Digest. Krishnan also noted that some recent refranchising moves will open up room for more Poppi distribution.
The food and beverage giant closed on the $1.65 billion acquisition of Poppi for $1.95 billion last May. The transaction included a performance-based earnout contingent on the Poppi business achieving certain performance metrics.
“Poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages,” noted Krishnan on the deal. “Its rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio. We are excited to scale Poppi’s momentum and unlock new growth through our capabilities—we’re just getting started,” he added.
Launched in 2018 as “Mother Beverage” and rebranded as Poppi after receiving Shark Tank-originated funding from CAVU Consumer Partners, Poppi falls into the ~$440M prebiotic soda category, a fast-growing segment of low-sugar beverages that contain fiber (prebiotics), probiotics, fruit juices, and apple cider vinegar. Since 2020, Poppi sales have tripled each year, reaching $100M in 2023. Analysts predict the prebiotic soda market will nearly double by 2030.
PepsiCo’s (PEP) long list of billion-dollar beverage brands includes Pepsi, Diet Pepsi, Gatorade, Tropicana, Aquafina, Mountain Dew, SodaStream, and Sierra Mist.