On Mar. 17th, PepsiCo bought the Austin, Texas based brand Poppi. As a fast growing prebiotic soda, Poppi was sold for nearly $2 billion.
As a brand that started out as apple cider and vinegar based drinks that were sold at local farmers markets, the brand label was launched in 2018 and has become one of the fastest growing gut-healthy sodas.
“I was first introduced to them when I was babysitting,” junior Lillian McConnathy. “I loved how even though it was a healthier drink, it still had a nice flavor to it.”
Poppi drinks fall under that category of “functional beverages” where the ingredients included are not found in standard sodas such as prebiotics and added fiber. Many functional beverages have been growing in popularity due to the health benefits while also being relatively similar in taste to regular sodas.
“Poppi sodas are my new go-to drink,” junior Lily Liao said. “I know exactly what flavor to get when I go to the store,”
Recently, consumer demand for healthier products, combined with a variety of flavors to choose from and strategic marketing have enabled the exponential growth of these new soda brands. What they lack is the massive distribution networks that beverage behemoths, like PepsiCo, possess.
“What makes this interesting is that PepsiCo owns a lot of unhealthy brands like Lays,” junior Winnie Chun said. “It’s surprising to see them buy a healthier option.”
While PepsiCo has historically bought labels like Fritos, Lay’s, and Mountain Dew that lean towards the unhealthy side of the snack and drink industries, they have been working to diversify away from its standard soda and snacks. by making acquisitions of healthier brands like Siete Foods and Sabra Dipping Co. they direct their business and investments towards the trends of consumer consumption.
“I think it is a really strategic business move to follow the trends of the consumer,” McConnathy said. “It not only benefits the corporation but also our everyday lifestyles.”
