If you thought ‘functional’ recreational beverages were just a fad, think again! Pepsi, for one, is think-ing big, betting $2 billion that its new deal to purchase Poppi prebiotic soda will help it rebound from its recent soda hierarchy demotion…
Who could forget that Pepsi was pushed out of its traditional second-slot position in the interna-tional soda brand standings a few months back by a sudden Dr. Pepper surge?
A furry of new promos
After a severe attack of, “I tawt I taw a puddy tat’-itis, Pepsi has been frantically busy launching new promos, products and other initiatives aimed at regaining second place in the soda rankings behind perennial leader Coca Cola.
Now, in its boldest move yet, the beverage and snack behemoth has agreed to buy upstart start-up soda brand Poppi for a total of $2 billion in cash and other assorted assets.
In doing so, Pepsi has admitted that its own efforts to develop a prebiotically fortified carbonated drink had fizzled out. Pepsi had been sending out strong signals that its own version of a therapeutic soda, provisionally branded Soulboost, was going to be scuttled.
How important is ‘function’-ality?
Many consumers who don’t follow the trends may not be aware that nutritional ‘functionality’ is the next big thing in recreational foods and beverages. Bloomberg Business News recently reported that sales of functional beverages surged some 60 percent over the previous 12 months.
PepsiCo Chairman and CEO Ramon Laguarta said in a statement earlier this week: “We’ve been evol-ving our food and beverage portfolio over many years at PepsiCo.”
“Whether we’re innovating with our iconic brands or making strategic acquisitions,” Laguarta contin-ued, “we’re making sure we have even more positive choices [to offer] consumers. Poppi will be a great complement to our portfolio as we continue to provide consumers with convenient and great-tasting options that fit their lifestyles and growing interest in health and wellness.”
Pepsi also recently acquired Siete Family Foods and Sabra Dipping Company, both of which are rela-tive newcomers to the international sphere, and both of which are dedicated to developing healthier versions of traditional foods fr 21st Century snackers.
My take
I did manage to resist using the obvious ‘cutsie’ headline, ‘Pepsi buys Poppi’. Which means Sister Erin owes me a buck…
Anyway… The overall message is clear: Pepsi is not sitting still, in some sort of corporate paralysis, still in shock from its setback. Bravo, Pepsi!
I’ll be curious to see what else the the plucky brand has in store for us over the next few crucial months…
~ Maggie J.