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Pepsi to buy prebiotic soda brand Poppi for nearly $2 billion

A MARTÍNEZ, HOST:

A new generation of soda - that's the pitch Pepsi bought this week for nearly $2 billion. NPR's Alina Selyukh reports on what Pepsi hopes to gain with the upstart brand Poppi.

ALINA SELYUKH, BYLINE: About a decade ago was the heyday of the fermented tea many love to hate, kombucha.

MARTIN CABALLERO: But it had a lot of practical issues.

SELYUKH: Martin Caballero is the managing editor at the beverage industry trade publication BevNET.com. He says kombucha is finicky, needs refrigeration and, well...

CABALLERO: Its taste was polarizing.

SELYUKH: It's not for everyone. The stage was set for a new type of fizzy health drink. In Texas, Allison and Stephen Ellsworth experimented with apple cider vinegar, and in 2018, they brought their pitch to ABC's "Shark Tank."

(SOUNDBITE OF TV SHOW, "SHARK TANK")

ALLISON ELLSWORTH: So what do you say, Sharks? Are you ready to try the best-tasting apple cider vinegar drink you've ever had?

SELYUKH: They called it Mother Beverage, but after that investment from one of the sharks, the brand transformed into Poppi. Vibrant cans showed up in Whole Foods and Walmart, claiming to be prebiotic, containing fiber meant to feed the good bacteria in our guts.

CABALLERO: And that sort of coincided with a big interest around gut health as a wellness trend.

SELYUKH: This week, Poppi actually settled a class-action lawsuit that argued it had overstated the gut health benefits of its drinks. And Caballero points out Poppi had been shifting its marketing. Now it's less health drink and more healthier soda. Here's a Super Bowl commercial.

(SOUNDBITE OF AD)

UNIDENTIFIED NARRATOR: It tastes like soda, looks like soda, smells like soda and fizzes like soda - because it is soda.

SELYUKH: Stealing shoppers from diet pop is a big deal. Coca-Cola just launched its own prebiotic soda called Simply Pop, and Pepsi wanted in to add to its Gatorade, SodaStream and Bubly. And Poppi fans online say they just hope their favorite better-for-you soda does not get worse for you in the process.

Alina Selyukh, NPR News.

(SOUNDBITE OF PAUL JACOBS SONG, "CHRISTOPHER ROBBINS") Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Alina Selyukh is a business correspondent at NPR, where she follows the path of the retail and tech industries, tracking how America's biggest companies are influencing the way we spend our time, money, and energy.

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SOMOS CONNECTICUT es una iniciativa de Connecticut Public, la emisora local de NPR y PBS del estado, que busca elevar nuestras historias latinas y expandir programación que alza y informa nuestras comunidades latinas locales. Visita CTPublic.org/latino para más reportajes y recursos. Para noticias, suscríbase a nuestro boletín informativo en ctpublic.org/newsletters.

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You just read trusted, local journalism that’s free for everyone, thanks to donors like you.

If that matters to you, now is the time to give. Join the 50,000+ members powering honest reporting and a more connected — and civil! — Connecticut.