AUSTIN, Texas — PepsiCo is adding another Austin-based brand to its portfolio.
The company announced Monday it’s acquiring the popular prebiotic soda brand Poppi for $1.95 billion, giving PepsiCo a fast-growing brand in the functional beverage category.
Poppi has been under fire following a lawsuit that claimed its drinks don’t improve gut health as much as its marketing suggests. While Poppi denied the claims, the Associated Press reports it removed references to “gut health” from its packaging and agreed to a settlement that includes $8.9 million fund for payments to consumers.
PepsiCo’s transaction includes a net purchase price of $1.65 billion and $300 million in anticipated cash benefits. Poppi co-founder Allison Ellsworth said the deal will expand Poppi’s reach.
“We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people,” Ellsworth said. “I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation.
Poppi’s humble beginnings
In 2015, Ellsworth developed Poppi in her kitchen as a healthier alternative to soda. She combined fruit juices with apple cider vinegar, sparkling water and prebiotics, then sold the drink at farmer’s markets as “Mother Beverage.”
The brand exploded in 2018 after Ellsworth and her husband pitched it on “Shark Tank.” During their appearance, guest investor Rohan Oza took a stake in Mother Beverage, rebranding the company as Poppi and introducing vibrant, fruit-themed cans.
Other Austin-based PepsiCo investments
In October 2024, PepsiCo announced an agreement with Siete Foods, the popular Mexican-American brand that sells chips, tortillas, sauces and more.
PepsiCo finalized the $1.2 billion purchase of Siete Foods in January to expand its portfolio while carrying on the family’s legacy, which started in Laredo.
In 2014, Veronica Garza co-founded Siete as a way to adopt a diet that supported her autoimmune health without sacrificing foods her family loved. After developing an almond flour tortilla, Siete expanded, thriving on a range of products that include cassava flour tortillas and grain-free potato chips.