PepsiCo Acquires Poppi for $1.95 Billion Boosting Distribution

Coin WorldMonday, Jun 16, 2025 9:26 am ET
1min read

Allison

, the founder of Poppi, has achieved a remarkable feat in the beverage industry. Ten years ago, she began mixing fruit, cider vinegar, and soda water in her kitchen with the goal of creating a "healthy" soda that was low in sugar and high in fiber. This journey culminated last month when acquired her beverage company, now known as Poppi, for $1.95 billion. This figure includes an estimated $300 million of cash tax benefits.

Ellsworth, who cofounded Poppi with her husband, Stephen, will remain with the brand as a creative advisor. The acquisition was initiated by PepsiCo, and one of the major attractions for Poppi was the potential impact on its distribution system. In 2024, Poppi, which markets itself as "prebiotic soda," had annual revenue exceeding $500 million and was sold in over 120 different retailers, including Whole Foods, Target, and CVS. The company is currently available in the U.S., Canada, and Mexico. Ellsworth highlighted that the acquisition would open new distribution channels, such as sports arenas and certain fast-casual restaurants, providing a significant boost to their reach.

Poppi's success can be attributed to Ellsworth's vision of creating a community at the intersection of wellness and influencer culture, rather than just a drinks brand. The company offers 16 flavors of soda, known for their bold, neon branding and celebrity fans, including Olivia Munn, Post Malone, Alix Earle, and Nicole Scherzinger, who are all investors. Ellsworth, who appeared on Shark Tank in 2018 while nine months pregnant, secured a $400,000 investment from Rohan Oza. She actively engages with Poppi's approximately 1.2 million followers across Instagram and TikTok, announcing new initiatives and addressing controversies.

Recently, Poppi settled a class action lawsuit for $8.9 million following allegations that the company's marketing promises around gut health were misleading. One can of Poppi contains 3 grams of fiber and 5 grams of sugar. The lawsuit contended that the drinks needed more prebiotic fiber and less sugar to positively impact digestion. Ellsworth acknowledged that such lawsuits are common for big brands and expressed relief that the issue is now resolved. The company's official statement on the settlement noted that Poppi "acknowledges no fault, liability, or wrongdoing."

Ellsworth compared handing over the reins of her company to watching a child go off to college. She expressed a mix of happiness and anxiety, hoping that Poppi would flourish under PepsiCo's leadership. Despite the transition, she remains confident that Poppi is in good hands.