Pepsi (PEP.US) is ambitiously positioning Poppi as its next emerging brand to surpass $1 billion in annual sales—a strategic goal explicitly stated by Pepsi executive Ram Krishnan in a recent event. Krishnan also emphasized that Pepsi's recent franchise transfer initiatives will create greater opportunities for Poppi's distribution expansion.
The food and beverage giant completed its acquisition of Poppi in May last year, with a base transaction value of $1.65 billion, potentially rising to $1.95 billion if performance targets are met, including a contingent payment tied to milestones. Krishnan remarked on the acquisition, stating, "Poppi aligns perfectly with our short-, medium-, and long-term beverage strategy. Its rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio. We are leveraging Pepsi's capabilities to amplify Poppi's growth momentum and unlock new opportunities—this is just the beginning."
Originally launched in 2018 under the name "Mother Beverage," Poppi rebranded after securing investment from CAVU Consumer Partners through a TV show appearance. The brand operates in the prebiotic soda category, a $440 million market and the fastest-growing segment in low-sugar beverages, featuring dietary fiber (prebiotics), probiotics, fruit juice, and apple cider vinegar. Since 2020, Poppi's sales have tripled annually, reaching $100 million in 2023. Analysts project the prebiotic soda market could nearly double by 2030.
Pepsi's portfolio of billion-dollar beverage brands also includes Pepsi, Diet Pepsi, Gatorade, Tropicana, Aquafina, Mountain Dew, SodaStream, and Sierra Mist.
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