67d83660467956642d1dba22 Pepsico Acquires Poppi

PepsiCo Will Pay $1.95 Billion for Poppi

March 17, 2025

The Shark Tank discovery gives PepsiCo a top contender in the prebiotic soda category, suddenly swollen with new entrants from Coca-Cola and Talking Rain.

Dave Fusaro

The rumors are true. PepsiCo this morning confirmed it is buying fast-growing prebiotic soda brand Poppi for $1.95 billion. The transaction includes additional consideration if certain performance milestones are achieved within a specified period after the transaction closes.

The drink was created by Allison and Stephen Ellsworth of Austin, Texas, discovered on Shark Tank by Rohan Oza and funded by his CAVU Consumer Partners from their initial seed round to today. Poppi combines prebiotics (agave inulin and cassava root fiber), fruit juice and apple cider vinegar to create a soda with no more than 5g of sugar per serving (the inulin and cassava root add a tiny amount of naturally occurring sugar). It’s developed a loyal fan base that’s driven rapid growth.

"We've been evolving our food and beverage portfolio over many years," said Ramon Laguarta, PepsiCo’s chairman and CEO. "More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. Poppi is a great complement to our portfolio transformation efforts to meet these needs."

Ram Krishnan, CEO of PepsiCo Beverages U.S., added, "As we look to reorient our portfolio offerings to address white space consumer needs, the Poppi brand's unique intersection with wellness and culture is a perfect addition to our portfolio."

"When I created Poppi in our kitchen, it was fueled by a desire to create a better-for-you soda," said Allison Ellsworth. "We never imagined how many people we could reach through hard work, determination and a clear mission to create a functional soda that stands the test of time. We believe Poppi is the soda that will be embraced for generations to come.”

It's a big win for Oza, co-founder at CAVU Consumer Partners, who bought into the company as a guest Shark on ABC's Shark Tank. "We're beyond thrilled to be partnering with PepsiCo so that even more consumers across America, and the world, can enjoy Poppi – a truly modern soda for the next generation."

Rumors of a sale began circulating Friday (March 14). Poppi, Olipop and a handful of other brands that added fiber have taken off in the past year, leading Coca-Cola to debut its own product, Simply Pop, and Talking Rain to launch Popwell, both arriving in late February.

That $1.95 billion purchase price includes $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion, according to PepsiCo's math.

About the Author

Dave Fusaro | Editor in Chief

Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.