The functional soda category has soared in popularity|@drinkpoppi|X
PepsiCo is in advanced talks to acquire prebiotic soda maker Poppi for over $1.5 billion, according to Bloomberg.
Pepsi had earlier planned to make its own healthy soda beverage and enter the functional soda category but has since scrapped the idea.
The category, which includes Olipop and Poppi, has soared in popularity. Sales shot over 60% in 2024, according to grocer FreshDirect. Sales of probiotic sodas in the US surged to approximately $820 million, accounting for about 2% of the $42.4 billion US soft drink market, per Fortune.
Meanwhile, traditional sodas have seen only slight growth.
With rising consumer demand for health-conscious drinks, PepsiCo is doubling down on wellness. Rival Coca-Cola recently launched its prebiotic soda, Simply Pop.