Pepsi Is Buying A Controversial Soda Brand For Nearly $2 Billion
As illustrated by some people celebrating the recent ban on red dye no. 3, it seems like folks these days are paying more attention than ever to what is in their food and beverages, and brands that sell what are often considered healthier alternatives to classic drinks and snacks are capitalizing on that trend. Based on a recent acquisition by PepsiCo, which was recently sued by the U.S. government, titans of the industry are also taking notice. It has been announced via press release that the beverage behemoth has bought the popular Poppi brand drinks for $1.95 billion.
Poppi brands itself as a healthier, prebiotic-infused soda alternative that offers all the flavor of traditional soda without the excess sugar and calories. Just as cold brew coffee company Bruw reached new heights of fame after appearing on ABC's Shark Tank, Poppi boosted customer awareness of its brand after securing a deal on the show with guest shark Rohan Oza. Still, Poppi isn't without its controversy. The company has been utilizing influencer and celebrity endorsements to increase its visibility in a crowded market, but one of its recent stunts didn't sit well with some folks.
Poppi's Super Bowl advertising was not well-received
The Super Bowl is well-known as an advertising gold mine, both for the networks that profit from companies buying ad time and the companies themselves getting millions of eyeballs on products. While Poppi didn't feature a commercial during the big game, it did get in on the Super Bowl hype. Instead of producing a television-worthy commercial, it leaned on influencers by lending a few lucky folks a Poppi vending machine.
As videos started to emerge online highlighting how cool it was to have a Poppi vending machine, some people pointed out that perhaps well-off influencers were less deserving of such an elaborate gift than hard-working folks like hospital workers and teachers. Not to let a good opportunity go to waste, rival beverage company Olipop took a jab at Poppi by highlighting that the machines cost $25,000 a piece.
However, Poppi's founders indicated the cost was roughly half that and, what's more, the machines were only loaned, not given, to the influencers in question. That may have quelled some of the anger directed at the company, but either way, PepsiCo seems unconcerned. The larger company is spending a sizeable amount of money to fold Poppi into its extensive beverage portfolio, presumably unfazed by the advertising brouhaha.