PepsiCo Snags Austin-Based Poppi for $2B, Bolstering Health Drink Portfolio

PepsiCo acquires Poppi, an Austin prebiotic soda brand, for nearly $2 billion, doubling down on health-focused beverages.

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TXBIZNEWS

5/20/20251 min read

Austin, TX — On March 17, 2025, PepsiCo announced its $1.95 billion acquisition of Poppi, an Austin-based prebiotic soda brand, marking its second health-focused purchase in the city.

The Details:

  • Deal Breakdown: The acquisition nets PepsiCo $1.65 billion after $300 million in cash tax benefits, with additional payments tied to Poppi’s future performance milestones.

  • Poppi’s Rise: Founded in 2018 by Allison and Stephen Ellsworth, Poppi hit $100 million in sales by 2023, offering low-sugar, prebiotic sodas with apple cider vinegar.

  • Austin Trend: PepsiCo’s move follows its 2024 acquisition of Siete Foods, signaling a focus on Austin’s health-driven brands.

Why It Matters:
PepsiCo’s buy strengthens its health beverage lineup, tapping into Austin’s innovation hub to meet rising consumer demand.

Bottom Line:
PepsiCo bets big on Poppi to keep Austin’s “Keep Pepsi Weird” vibe alive and thriving.