Pepsi Bites: $1.7 Billion Grab for Shark Tank's Rising Soft-Drink Star

On Monday, PepsiCo Inc. announced plans to acquire a soft-drink firm for approximately $1.7 billion. This company gained significant traction through social media after appearing on "Shark Tank." By making this move, PepsiCo aims to attract younger consumers 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 sensible as we think PepsiCo’s operations within the North American beverages sector could further enhance Poppi’s availability," stated TD Cowen analyst Robert Moskow, maintaining his "hold" recommendation for Pepsi. He also noted that 'functional soda' seems to be evolving into a prominent category with lasting consumer interest.

One of the more prosperous enterprises showcased on ABC's "Shark Tank," which has recently concluded its 16th season featuring business owners presenting 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 and has reportedly achieved $1.3 billion in total sales since then.

Another company was Ring, a manufacturer of doorbells that made an appearance on the show in 2013. It 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 company highlighted on the program back in 2012 that produces sponges, has reportedly accumulated total sales amounting to $925 million.

Regarding Poppi, the item first appeared on the show in 2018 with the band name Mother Beverage. It received backing from "shark" Rohan Oza during the presentation. agreed to buy A 25% equity stake in the business for $400,000. Oza will assist with rebranding the company to Poppi, and his investment firm, Cavu Consumer Partners, will spearhead additional efforts. $25 million financing round in Poppi in 2022.

In 2024, the company had grown large enough to air advertisements during the Super Bowl, and it repeated this feat this year.

"What began as a homemade creation rapidly gained popularity at local farmer’s markets before catching the attention of 'Shark Tank' investors. It is now widely available across major retail stores throughout the country," according to statements made by Pepsi and Poppi.

The business was started by the married couple Stephen and Allison Ellsworth in Austin, Texas. Their beverage includes components like apple cider vinegar that are intended to enhance digestion.

Following its appearance on "Shark Tank," Poppi attracted millions of dollars in investments from stars, including backing from singers Jennifer Lopez and Billie Eilish along with actress Mila Kunis, plus additional promotion on the "Drew Barrymore Show."

Prebiotics are substances designed to feed the beneficial bacteria in your digestive system, which aid in digestion and support general well-being.

The analyst Moskow from TD Cowen indicated that Pepsi has invested approximately $3 billion in "healthier" product lines 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%.