PepsiCo Bets Big on Poppi
PepsiCo announced on Monday that it is acquiring prebiotic soda brand Poppi for nearly $2 billion, signaling its entry into the fast-growing functional beverage market. While traditional soda consumption has declined in the U.S., prebiotic sodas like Poppi, Culture Pop, and Olipop have gained traction among health-conscious consumers. The deal, valued at $1.95 billion, includes $300 million in tax benefits and additional milestone-based payments.
Poppi, founded in 2018, has experienced rapid growth, surpassing $100 million in annual sales by 2023 and making two consecutive Super Bowl ad appearances. The brand perfectly capitalized on the “better-for-you” and gut health trends, seamlessly integrating them into the soda category. Pepsi had initially planned to launch its own functional soda under the Soulboost brand but ultimately opted to acquire Poppi instead—a move that may prove more strategic in the long run.
Coke’s Different Approach
In contrast, Pepsi’s rival Coca-Cola has taken an R&D-focused approach, introducing its own prebiotic soda, Simply Pop. Set to launch in late February across the West Coast and Southeast, Simply Pop positions Coke directly against Olipop and Poppi, the two brands that have fueled the prebiotic soda category’s growth—from $197 million in 2020 to $440 million in 2024.
So, which conglomerate made the better move? Pepsi’s M&A or Coke’s R&D? Both strategies are just getting started, making it too soon to declare a clear winner. However, my prediction is that Pepsi’s nearly $2 billion acquisition of Poppi will prove the stronger long-term play. Pepsi didn’t just buy a new soda brand—it acquired Poppi’s brand equity, community, and cultural cachet that has been meticulously built over seven years. That level of authenticity and consumer loyalty is difficult to replicate, making $2 billion a fair price or possibly a steal for Pepsi’s expansion into the space.
The Power of Poppi’s Influencer-Driven Marketing
Unlike Simply Pop, Poppi has strategically built its success on influencer marketing and social media engagement, dedicating approximately 60% of its digital ad budget to influencer partnerships. This investment has been a game-changer, allowing Poppi to grow into a $100+ million company by leveraging TikTok and Instagram to cultivate an engaged and passionate community.
A key turning point in Poppi’s social media success came in 2021, when co-founder Allison Ellsworth posted a raw, personal TikTok about her journey creating the brand and pitching it on Shark Tank. The video went viral, driving a 200% increase in sales within 24 hours and skyrocketing Poppi’s TikTok following by 16x overnight. This moment cemented TikTok as Poppi’s most valuable marketing channel, leading to further viral campaigns and rapid brand adoption.
Social Buzz to Sales
Poppi’s social media-driven marketing has allowed it to bypass traditional advertising in favor of high-profile influencer collaborations. The brand works with internet celebrities like Alix Earle, Addison Rae, Hilary Duff, and a diverse mix of fitness, wellness, and lifestyle creators, turning them investors or long-term brand advocates rather than just paid endorsers. By doing this Poppi also turned the influencers communities of followers in passionate brand supporters and loyal customers
This strategy has paid off in multiple ways: Poppi has gifted influencers exclusive Poppi-branded neon sweatsuits, seamlessly integrating the brand into their daily content. Jake Shane’s TikTok reaction to his Poppi Super Bowl commercial and Alix Earle’s vlogs featuring Poppi have driven millions of organic views, reinforcing Poppi’s viral status among Gen Z and millennials.
Additionally, Poppi has capitalized on the viral sorority rush trend ("RushTok"), sponsoring recruitment events and gifting sodas to potential new members, making the brand a staple on college campuses. By engaging with RushTok influencers, Poppi has positioned itself as the ultimate Gen Z beverage, strengthening brand affinity among a key demographic.
Why Simply Pop Can’t Compete
While Coca-Cola’s Simply Pop has the resources and distribution power of a global giant, it will struggle to replicate Poppi’s deep-rooted community and cultural relevance. Poppi isn’t just selling soda—it has built an authentic lifestyle brand through influencer-driven marketing, viral campaigns, and strong engagement with Gen Z and millennial consumers. It's a cultural staple.
By fostering genuine connections with its audience through relatable storytelling and influencer partnerships, Poppi has created a brand that feels personal rather than corporate. Simply Pop may offer a similar product or even recruit a mega celebrity to be a brand ambassador, but without the organic, influencer-backed credibility and passionate community Poppi has cultivated, it will likely remain a corporate challenger rather than a true category leader.
