Poppi soda started as a kitchen experiment with apple cider vinegar. Today, it’s winning over consumers and answering the call for functional ingredients in a sugar-saturated soda category that’s slipping away from the biggest names in beverage.
Last updated April 15, 2025.
For decades, soda held a fixed place in American life. Cracking a cold can. The fizz. That first sip. Aaaaahhhh. It’s a beverage that’s tied to memories as much as the meals we drank it with. The taste of summer barbecues, long road trips, movie nights. Sweet indulgence.
But soda has, in the last three decades, especially now in light of prebiotic Poppi soda getting acquired last month for $1.95 billion, undergone a change. The warm, familiar glow of classic soda brands has dimmed. Growing concerns about sugar overload, artificial sweeteners, and an utter lack of nutritional value have made even the most devoted soda fans second-guess their nostalgic choices.
One door opens as another closes. Brands like Poppi soda and its fiber-forward counterpart, OLIPOP, have pioneered a new healthy soda category with purported functional benefits. Poppi, in particular, has become a breakout beverage and is on its way to being a household name.
How legacy soda brands lost control of their category
For decades, soda giants sat comfortably atop the beverage world. The formula seemed unshakable: deliver big, bold flavors, anchor them in iconic branding, and keep consumers coming back for that sweet, carbonated hit of Americana.
Then, we learned the cane sugar in soda ain’t so sweet. Starting in the late 1990s, studies linked sugary drinks to weight gain, fueling growing concerns about health risks, such as obesity and diabetes, from excessive soda consumption. The sugary, fizzy beverage shifted from comfort to liability. Familiar favorites became harder to justify. Consumers started buying fewer soda bottles.
The modern health movement in America also picked up in the early 2000s, contributing to this decline in soda sales. People began paying closer attention to what they were eating and drinking. They wanted to understand, increasingly, the origins of their food. Food tracking apps, clean-label packaging, and clean eating philosophies pushed ingredient transparency to the forefront.
What’s in this drink? How is it helping my health?
Soda consumption in the U.S. fell from nearly 53 gallons per person annually in 1998 to below 39 gallons by 2018—a 26% decline in just two decades.
Legacy soda brands fumbled their response. They doubled down on diet versions, amping up the relative safety of artificial sweeteners. But this solution quickly soured. Research raised new alarms about potential health risks tied to those very sweeteners, such as increased risks of heart attacks and strokes.
Consumer trust eroded further, and brands like Coke and Pepsi found themselves caught in a trap. Wary of changing their flagship formulas, yet hesitant to launch truly innovative new products, they largely chose to acquire other beverage brands rather than invent.
Late-millienials and early-Gen Z let the soda go flat
Younger generations were kicking the classic soda habit the most. Between the mid-2000s and late 2010s, teen soft drink consumption plummeted by nearly 60%. Surveys confirmed that this move away from traditional sodas was an intentional search for beverages that better aligned with their personal values: natural ingredients, functional benefits, and health-forward choices.
In that vacuum, sparkling water found its moment. LaCroix, once a little-known regional player, skyrocketed from $65 million in 2010 to over $226 million by 2015—a meteoric 247% rise. Spindrift followed suit, experiencing a remarkable 800% growth between 2016 and 2018.
But even as sparkling water began pulling share from Big Soda, a bigger opportunity was quietly forming on the horizon. Functional sodas—the answer to consumers craving the fun and flavor of their terrible-for-you fizzy drink, reimagined to be better-for-you—started to take shape. Today, these low-sugar, functional-ingredient-laden sodas claim about 2.7% of the U.S. carbonated beverage market, with projections suggesting the category could surge toward $2 billion in sales by 2029.
Which raises a fascinating question: how did this all happen so fast? How did soda—a category once defined by its sugary excess—get flipped on its head and reinvented as a functional, feel-good staple?
To answer that, let’s start at the beginning. Specifically, in a home kitchen in Texas, where a determined founder took a vinegar-based home remedy and sparked a beverage revolution.
Poppi soda 1.0: From home remedy to Shark Tank gamble
Allison Ellsworth was battling persistent health issues and searching for natural remedies that worked. She stumbled upon apple cider vinegar (ACV), lauded for its high acetic acid content, known to help lower blood sugar and combat harmful bacteria in the body. Determined, she began taking daily shots of the acidic elixir. But as anyone who’s tried a straight shot of ACV knows, it’s an eye-watering experience—harsh on the throat and tough on the stomach lining.
Ellsworth believed deeply in the health potential of ACV, particularly the mysterious “mother” substance found in unfiltered vinegar; a cloudy collection of proteins, enzymes, and friendly bacteria that some consider the secret to ACV’s health benefits (though clinical proof remains limited). She and her husband Stephen set out to solve the problem: how could they preserve the benefits of ACV but make it drinkable, maybe even refreshing?
Through plenty of trial and error, they created a prototype that blended ACV with fruit juices and natural sweeteners to tame its aggressive bite. What they developed exceeded expectations. It was a bright, slightly tart, and genuinely refreshing beverage that delivered health perks without the vinegar sting.
In 2018, the Ellsworths took their fledgling drink, then branded as Mother Beverage, to Shark Tank. Most of the Sharks were unimpressed, visibly recoiling at the vinegar-forward flavor. But one saw beyond the pucker. Rohan Oza, the brand-building force behind Vitaminwater and Bai, asked, “Do you have a functional story?” Oza understood that a beverage’s success wasn’t just about taste. It was about what people believed drinking the beverage would bring them. Health. Wellness.
Taking a chance on the gut-friendly concoction, Oza invested at a $1.6 million valuation for a 25% stake in the company. Little did he know, this would become the highest ROI investment in Shark Tank history: seven years later, Poppi’s sale to PepsiCo at a $1.95 billion valuation has the potential to transform his early investment, should his shares have remained undiluted, into a nearly $500 million stake in the future of soda.
Still, in its early Mother Beverage days, this was just a scrappy kitchen project with a dedicated following. Not a cultural icon (yet). That part was still to come.
Poppi 2.0: Reinventing soda for the wellness generation
Following Shark Tank, the founders realized Mother Beverage needed more than a functional story—it needed a cultural one. That’s where they turned to Poppi: a name change that perfectly captured the brand’s fizzy, approachable personality and helped distance it from the vinegar-heavy health tonic perception.
The rebranding was much more than cosmetic. The team amplified everything that made their drink feel fresh and fun. Out went the apothecary-style branding of Mother Beverage; in came candy-colored cans, sun-soaked pastel palettes, and cheeky, irreverent tone. Poppi quickly became Instagram gold, with influencers flaunting rainbow-hued cans in sun-dappled kitchens and beachy picnics. The visuals alone screamed: this is not your mother’s health drink.
Poppi’s playbook was smart: pair wellness with whimsy. Flavors like Strawberry Lemon and Raspberry Rose delivered nostalgic nods to soda classics, but with none of the sugary baggage. Each can packed a modest 20 calories, around 5 grams of sugar, and a dash of ACV, giving it the credibility of a functional beverage without overwhelming the palate.
The strategy worked. Poppi’s growth exploded: sales crossed $50 million in 2021 and doubled to around $100 million by 2023. The company reported 148% year-over-year growth in 2022 alone as it expanded into major retailers and carved out space next to kombuchas and sparkling waters on supermarket shelves.
The culmination of Poppi’s meteoric rise came in March 2025, when PepsiCo acquired the brand for nearly $2 billion. This move sent shockwaves through the beverage industry because it validated the entire “better-for-you soda” category. Big Beverage had made it clear: functional fizz is the future.
Yet even in the glow of its success, Poppi’s journey is more revealing than it is triumphant. The brand’s ascent underscores the cultural craving for drinks that do more than quench thirst. Consumers today want beverages that reflect their values: wellness-oriented, visually joyful, and socially shareable.
OLIPOP soda enters the chat: the fiber-forward challenger
Poppi may have captured the cultural zeitgeist with its Instagram-worthy aesthetic, but it’s far from the only innovator redefining the soda aisle. Enter OLIPOP, a brand that took a more scientific route to soda reinvention, proving there’s more than one way to stand out and gain market share in the better-for-you soda moment.
Founded by functional beverage veterans Ben Goodwin and David Lester, OLIPOP’s story begins in the lab. Both founders were deeply invested in the science of gut health and the gut microbiome long before it became mainstream dinner party conversation. Their mission was to create a drink that supported digestive health while tasting indulgent enough to tempt even the most committed cola drinker. Great for your body, great for your tastebuds.
The key to walking this fine line? Fiber.
Fiber is one of the most important nutrients for long-term health and longevity, helping to maintain digestive health, regulate blood sugar, and even lower cholesterol levels. In fact, dietary fiber is so essential that experts regularly cite it as a cornerstone of preventative nutrition.
Each can of OLIPOP soda boasts about 9 grams of dietary fiber per can: that’s roughly a third of the daily recommended intake, stealthily packed into flavors like root beer and cream soda that recall our soda shop favorites. OLIPOP’s fiber boost comes from an impressive roster of plant-based ingredients: marshmallow root, slippery elm, chicory root, cassava fiber, and more—all ingredients more at home in a naturopath’s apothecary than your average vending machine.
OLIPOP soda puts strategy on a shelf
But OLIPOP’s success isn’t just rooted in its ingredient list. It’s in the way the brand has smartly mapped its growth strategy around consumer behavior and retail expansion. While many brands scrambled to build direct-to-consumer social media or digital channels during the pandemic, OLIPOP kept to a retail-first approach. They strategically targeted natural food retailers and quickly expanded into mainstream heavyweights like Whole Foods, Target, and Kroger. By 2023, they had earned shelf space in over 20,000 stores nationwide, jumping from easy-to-miss specialty sections to aisle endcap displays.
This expansive retail footprint paid off handsomely. In 2023, OLIPOP surpassed $200 million in sales. By 2024, their revenue had doubled to nearly $400 million. Unlike brands that rely heavily on social buzz or digital channels, OLIPOP built its foundation on strong physical presence, ensuring consumers could discover their products while shopping for everyday essentials.
That said, OLIPOP has skillfully complemented its retail dominance with a clever dose of cultural relevance. Like Poppi, they’ve embraced social media to amplify their reach, using influencer partnerships and TikTok-friendly campaigns to draw in younger, health-conscious audiences. But where Poppi plays in bright, breezy spaces, OLIPOP exudes an intellectual charm, appealing to label-readers and wellness seekers who appreciate both nostalgia and nutritional rigor.
And while both brands champion gut health, OLIPOP distinguishes itself with its depth of scientific validation. By clinically supporting their formulation and staying true to their functional roots, they’ve built a playbook for the next generation of better-for-you beverages—drinks that don’t just promise wellness, but deliver it.
While Poppi and OLIPOP take different paths to gut health, they’re united by a common goal: reinvent soda for the wellness generation.
OLIPOP vs. Poppi: competitors or co-creators of a category?
It’s tempting to pit Poppi and OLIPOP against each other in a “healthy soda showdown,” but the reality is far more collaborative. Together, they’ve built the scaffolding of an entirely new beverage category—one that’s big enough for both to thrive.
- Ingredients: Poppi leans on apple cider vinegar for its prebiotic benefits, while OLIPOP uses a hefty blend of plant-based fibers and botanicals.
- Flavors: Both brands pay homage to classic sodas with flavors like Cola and Lemon Lime, but OLIPOP dives deeper into fiber-rich blends, while Poppi keeps things bright and approachable.
- Health claims: Both promise digestive health perks, low sugar counts, and better-for-you positioning—but their approaches appeal to slightly different audiences. Poppi’s playful marketing resonates with the casual health-curious crowd, while OLIPOP’s fiber-forward formula may attract more label readers and wellness devotees.
What’s remarkable is how these two brands have collectively validated the healthy soda category. By addressing consumer desires for flavor, nostalgia, and functionality, they’ve proven there’s robust demand for soda alternatives that don’t sacrifice health goals.
Looking ahead, their success is likely to inspire a new wave of functional sodas and hybrid beverages. Expect everything from sodas infused with adaptogens to hydration-boosting bubbles with added electrolytes. There’s plenty of fizz to go around.
What Poppi soda and OLIPOP tell us about the future of soda
Poppi soda and OLIPOP soda are signals of a shift in the beverage landscape. Consumers today are no longer satisfied with low calorie or diet alone. They expect their drinks to work harder: to taste great, support their health goals, and deliver a delightful experience from the first sip to the last bubble.
These brands have tapped into something deeper than just a trend. They’re reshaping soda into a functional, feel-good moment of joy—without the sugar crash. They’ve made the act of cracking open a can something you can feel genuinely good about.
What does this tell us about the future of soda? The soda aisle of tomorrow will look much of the same, bright colors and fun flavors, but what’s underneath the label will be totally different.
Mini-FAQ
Is Poppi soda good for you?
Poppi offers a lower-sugar alternative to traditional soda, with prebiotic benefits from apple cider vinegar, but like any beverage, it’s best enjoyed as part of a balanced diet. As demand for gut-healthy sodas grows, a recent lawsuit against Poppi sodas challenges whether a few grams of fiber are enough to justify the claim that beverage company makes on each one of their cans.
Who owns Poppi soda?
As of 2025, Poppi is owned by PepsiCo, following their nearly $2 billion acquisition.
Does Poppi soda have caffeine?
Most Poppi flavors are caffeine-free, though their Classic Cola and Root Beer varieties contain small amounts of natural caffeine.
Is OLIPOP good for you?
OLIPOP is designed to support digestive health, with 9 grams of dietary fiber and a blend of botanicals, making it a better-for-you soda option when enjoyed in moderation.
Does OLIPOP have caffeine?
Some OLIPOP flavors, like Vintage Cola, contain a modest amount of caffeine, while most are caffeine-free.
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Hillary Lyons
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