Pespi Unleashes $1.5 Billion Weapon as Traditional Soda Market Flatlines—Gen Z: I’m the Captain Now…

PepsiCo just looked at the exploding “functional soda” trend, saw its own failed attempt (RIP Soulboost, we hardly knew ye), and did what any self-respecting corporate giant would do—throw $1.5 billion at the problem. 

(Source: Giphy) 

In short, PepsiCo is reportedly in advanced talks to acquire Poppi, the prebiotic soda brand that made a splash with its $8M Super Bowl ad and cult-like Gen Z following. Because why build when you can buy? 

Simply put, soda is dead. Or at least, the kind that rots your teeth and gives you diabetes is. The new hotness on the block is none other than “gut health” sodas packed with prebiotics, probiotics, and a vague promise that they’re better for you. For instance, sales of functional sodas are up 60% YoY, while traditional soda sales are barely moving. And because Pepsi is doing it, Coca-Cola has also clinched a blatant attempt to steal market share by launching its own prebiotic soda, Simply Pop. Why? Because Poppi (Pepsi’s new side-piece) and its main rival, Olipop, have turned digestive health into a $440M category.

(Source: Bloomberg) 

The funny part? Pepsi initially had the right idea. They planned to enter the space with its own brand, Soulboost back in 2021, but it ultimately led to a flop. So now? They’re buying their way in. Genius. Now for the uninitiated, what in the hell is Poppi? Well, for starters, the company that has become the entire personality of tiktok mom’s everywhere, started as Mother (fitting). Then, in 2018, they got a boost from Rohan Oza on Shark Tank, rebranded, and went full send into the health-conscious soda wars. Since then, celebrities like Nicole Scherzinger and Ellie Goulding have jumped on board, and sales have skyrocketed.

Which is why now, PepsiCo isn’t just paying for Poppi’s recipes—they’re buying its brand equity, loyal following, and a shortcut into a category they couldn’t crack on their own. But, but, but… this isn’t all about printing money in RFK’s “Make America Healthy Again” agenda—it’s simply about beating Coke to the friggin’ punch to find relevance in a world that doesn’t want sugar water anymore.

(Source: CNBC) 

Translation: It’s a classic Coke vs. Pepsi arms race, except instead of battling over who can push more corn syrup, they’re now fighting over who can convince millennials their soda won’t kill them. And who better to trigger this new war than Pepsi? They know the game. They’ve seen what happens when you try to force innovation instead of just acquiring it. (See: Quaker Oats, SodaStream, Sabra.) And now for $1.5 billion, they’re getting it. 

In the end, we won’t know the full details on this bigly acquisition until later this week, but for now, a new era is emerging. The Pepsi Challenge walked so the functional soda war can run—and now we’re all getting a front row seat to it. Of course, only time will tell how much of an impact both of these moves will be for the sugar dealers, but for now, keep your eyes on Pepsi and Coke going forward. It’ll definitely be interesting.

In the meantime, stay safe and stay frosty, friends! Until next time… 

P.S. You know that feeling when an insider sells $2.5 million shares of a chip stock that’s “supposed” to be the next Nvidia? If you don’t, then you need to join Stocks.News premium asap to get the first-hand look at these massive insider transactions before the rest of the retail world catches on. Spoiler: The stock has soared 400% over the last 12 months—so why in the hell is the Chief Technology Officer of this high-flying stock dumping his bags now? 

Stocks.News holds positions in Pepsi and Coca-Cola as mentioned in the article.