PepsiCo Revives Poppi to Reclaim Cola Relevance

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In May 2025, PepsiCo completed the $1.95 billion acquisition of Poppi, the fast-growing prebiotic soda brand beloved on TikTok and associated with celebrities like Post Malone. Soon after, the company relaunched a revamped Pepsi Challenge and doubled down on beverage innovation under new leadership.

Poppi’s acquisition builds on its explosive momentum—annual revenues surpassing $100 million by 2023 and viral visibility via celebrity endorsements and NBA sponsorship. PepsiCo CEO Ramon Laguarta and U.S. beverage lead Ram Krishnan highlighted the deal as central to revitalizing core soda offerings and capturing Gen Z’s attention with wellness-aligned beverages.

Krishnan’s team also revamped Pepsi marketing with a modern twist on the iconic Pepsi Challenge. The refreshed campaign emphasizes distribution improvements, stronger retail presence, and behavior-changing storytelling—aimed squarely at reversing lost ground and boosting relevance.

Data shows beverage innovation is at the heart of market growth: non-alcoholic and functional drinks dominate launch activity, while legacy soda brands struggle. Almost 83% of F&B companies plan to increase innovation spend in 2025, yet only 2% are fully digitized—creating operational gaps for legacy players to bridge.

Marketing trend reports underscore that AI-driven personalization, immersive retail experiences, and social-commerce-first campaigns are now standard. Brands failing to adapt risk losing premium, wellness-seeking consumers.

With Poppi’s social brand equity and a strategic ad relaunch, PepsiCo aims to combine heritage soda strength with forward-looking wellness positioning—setting a new blueprint for growth in a polarized beverage market.