Poppi soda faces lawsuit after gut health benefits claimed misleading
Poppi soda faces lawsuit after its marketing for gut health benefits were claimed misleading.
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- PepsiCo announced on Monday that it will purchase Poppi for $1.95 billion.
- Last summer, Poppi was sued over claims that its drinks don’t contain enough prebiotic fiber to cause “meaningful gut health benefits.”
- The class-action lawsuit remains ongoing and it is unclear how it will affect PepsiCo’s acquisition of the brand. Poppi has denied the allegations in the lawsuit.
Pepsi is buying Poppi, the prebiotic soda sued last year for alleged deceitful marketing.
PepsiCo announced on Monday that it has entered into an agreement to purchase Poppi for $1.95 billion, according to a news release. The acquisition will allow PepsiCo to “evolve its portfolio” and expand its “better-for-you offerings.” PepsiCo did not share when the sale would finalize.
Last summer, Poppi was sued over claims that its drinks don’t contain enough prebiotic fiber to cause “meaningful gut health benefits.” It’s unclear whether the ongoing lawsuit will affect its acquisition.
Lawsuit aside, PepsiCo’s purchase will mark the company’s first step into the prebiotic soda industry, which has grown in recent years with the popularity of brands like Olipop, Culture Pop and most recently, Coca-Cola’s Simply Pop.
With the acquisition underway and a lawsuit ongoing, here’s more to know about Poppi.
Why was Poppi sued?
In June, Kristen Cobbs of San Francisco sued VNGR Beverage LLC, the Texas-based corporation that manufactures, markets and sells Poppi.
The class-action lawsuit alleges that one can of Poppi contains only 2 grams of prebiotic fiber, which means “a consumer would need to drink more than four Poppi sodas in a day to realize any potential health benefits.” If a consumer were to drink this many sodas, the suit states, Poppi’s high sugar content would offset most, if not all, of the reported gut health benefits.
In a statement previously provided to USA TODAY, Poppi said stands behind its products.
“We are on a mission to revolutionize soda for the next generation of soda drinkers, and we have diligently innovated to provide a tasting experience that millions of people have come to enjoy,” the company said. “We believe the lawsuit is baseless, and we will vigorously defend against these allegations.”
Neither PepsiCo nor Poppi immediately responded to USA TODAY’s request for comment on Monday.
What is Poppi?
Known for its bright and bold cans, Poppi is a soda that contains prebiotics from agave insulin and cassava root fiber; apple cider vinegar; fruit juice; and sugar, according to the company’s website. One can of soda is reported to contain 5 or less grams of sugar and 35 or less calories.
Poppi made its first public appearance in 2018 on the ABC series, “Shark Tank,” when founders Allison and Stephen Ellsworth accepted a $400,000 investment in exchange for 25% of the company from Guest Shark Rohan Oza. Known as the time as Mother Beverage, the soda was rebranded and first Whole Foods Market shelves.
“With the help of an investment on Shark Tank, Poppi has gone from farmers’-market-favorite to sitting pretty on the shelves of every major retailer across the nation,” the company’s website says, noting that the sodas are “beloved” by stars like Post Malone, Hailey Bieber, Kylie Jenner, Billie Eilish, Russell Westbrook, Jennifer Lopez and Olivia Munn.
According the the lawsuit, Poppi’s sales topped $100 million by 2024, and those numbers continue to grow as the drink represents 19% of the U.S. market share, surpassing Coke but 1.5 times.
Greta Cross is a national trending reporter at USA TODAY. Follow her on X and Instagram @gretalcross. Story idea? Email her at gcross@usatoday.com.
