On Monday, PepsiCo Inc. announced plans to acquire a soft-drink firm known for gaining significant social media traction after appearing on "Shark Tank," at a cost of approximately $1.7 billion. This move aims to help the beverage conglomerate attract younger demographics such as millennials and Generation Z by offering more health-conscious products.
PepsiCo intends to leverage Poppi's appeal as a "healthier alternative" soda brand, providing prebiotic beverages that contain fewer than 5 grams of sugar per serving.
At a selling price of $1.7 billion to Pepsi, the company is paying approximately 4.2 times Poppi’s revenue of $391 million from the last 12 months.
"We find this agreement logical as we think PepsiCo’s operations within the North American beverages sector could further enhance Poppi’s reach," stated TD Cowen analyst Robert Moskow, maintaining his "hold" recommendation for Pepsi. He also noted that 'functional soda' appears to be transitioning into a prominent category within the industry with enduring consumer interest.
One of the more prosperous enterprises highlighted on ABC’s "Shark Tank," which has recently concluded its 16th season presenting opportunities for business owners to pitch their ideas to a group of formidable investors like Mark Cuban and Barbara Corcoran, is Poppi.
Another notable success from "Shark Tank" is Bombas, a sock company that secured $1 million in funding during its appearance on the show in 2014. Since then, the brand has reportedly accumulated total sales of $1.3 billion.
Another company was Ring, a manufacturer of doorbells that made an appearance on the show in 2013 and subsequently received support from basketball legend Shaquille O'Neal prior to being acquired by Amazon.com for approximately $1 billion in 2018.
Scrub Daddy, a sponge maker featured on the show in 2012, has since reported cumulative sales of $925 million.
As for Poppi, the product was initially featured on the show in 2018 under the band name Mother Beverage. It drew support on the show from “shark” Rohan Oza, who
agreed to buy
a 25% stake in the company for $400,000. Oza would help rebrand the company as Poppi and his investment firm, Cavu Consumer Partners, would lead a further
$25 million financing round
in Poppi in 2022.
By 2024, the brand was big enough to advertise during the Super Bowl, and it did so again this year.
“What originally started as a home-brewed concoction quickly became a farmers’ market favorite turned ‘Shark Tank’ investment and is now available at major retailers nationwide,” Pepsi and Poppi said.
The business was founded by the married couple Stephen and Allison Ellsworth in Austin, Texas. Their beverage includes components like apple-cider vinegar that are intended to enhance digestive well-being.
After it was featured on “Shark Tank,” Poppi drew in millions of dollars in investments from celebrities, with endorsements from Jennifer Lopez, singer Billie Eilish and actress Mila Kunis as well as exposure on the “Drew Barrymore Show.”
Prebiotics are substances designed to feed the "beneficial" microbes in your digestive system that aid in breaking down food and maintaining general well-being.
According to TD Cowen analyst Moskow, Pepsi has invested approximately $3 billion in "healthier" products recently, which includes their purchase of the snack company Siete for around $1.2 billion back in January.
Pepsi’s stock rose 1.9% on Monday. The stock is down 0.5% so far in 2025, while the S&P 500 is down about 3.5%.
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