PepsiCo is going head-to-head with Coca-Cola in prebiotic soda market

Last month, Coca-Cola in the US launched a new brand called Simply Pop to capitalise on this trend, going up against the small but established brands, Olipop and Poppi. 

This week, PepsiCo set the cat among the probiotic drink pigeons by announcing that it is purchasing Poppi for almost US$2-billion, subject to regulatory approval. 

An evolving food and beverage portfolio 

“I’m excited to share PepsiCo has agreed to acquire Poppi, the fast-growing prebiotic soda brand. We’ve been evolving our food and beverage portfolio over many years at PepsiCo,” said Ramon LaGuarta, Chairman and Chief Executive Officer at PepsiCo, in a LinkedIn post. 

“We’re making sure we have even more positive choices for consumers. Poppi will be a great complement to our portfolio as we continue to provide consumers with convenient and great-tasting options that fit their lifestyles and growing interest in health and wellness.” 

Comments the marketing industry news website, Marketing Dive: “PepsiCo built its empire on the back of sugary, carbonated drinks such as its namesake cola, Mountain Dew and Mug Root Beer. Its purchase of Poppi signals a sea change in the soda category, validating the growing number of consumers craving more functional ingredients and less sugar in their soft drinks. 

“PepsiCo appears to have decided that despite its deep financial, marketing and distribution resources it was better to go out and buy the competition rather than struggle to compete against them with its own product.” 

According to some media commentary in the US, the supposed health benefits of prebiotic drinks have yet to be conclusively proven.