PepsiCo is acquiring prebiotic soda brand Poppi for $1.95 billion, marking a major move into the functional beverage market. The deal includes $300 million in tax benefits, bringing the net cost to $1.65 billion. Poppi, launched in 2018 by Allison and Stephen Ellsworth, has gained traction among health-conscious consumers, competing with Olipop. The brand has faced legal challenges over health claims but remains a key player in gut-friendly sodas. This acquisition strengthens Pepsi’s foothold in wellness drinks, as rival Coca-Cola introduces Simply Pop. PepsiCo aims to scale Poppi’s growth globally.