Poppisoda faces lawsuit after claiming that gut health benefits are misleading
Poppi Soda is facing lawsuits after it was allegedly misleading marketing for gut health benefits.
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Pepsico announced on Monday it would buy Poppi for $19.5 billion. In the summer, Poppi was sued for claiming that his drink didn’t contain enough prebiotic fibers to cause “meaning gut health benefits.” Popi denied the lawsuit motion.
Pepsi buys Poppi. Poppi bought a prebiotic soda last year, which was accused of fraudulent marketing.
PepsiCo announced on Monday it had signed an agreement to purchase POPPI for $1.95 billion, according to a news release. This acquisition will allow PepsiCo to “evolve its portfolio” and expand “what’s better.” PepsiCo did not share when the sale was finalized.
Last summer, Poppi was accused of the allegations that the drink didn’t contain enough prebiotic fibers to cause “meaning gut health benefits.” Poppi told USA Today on Monday that it had reached a $8.9 million settlement with the plaintiffs, waiting for court approval.
Aside from the lawsuit, the purchase of Pepsico marks the company’s first step into the previous biotic soda industry, which has grown in recent years with the popularity of brands such as Olipop, Culture Pop and more recently Coca-Cola’s Simply Pop.
The acquisition is underway and you can learn more about Poppi.
Why was Popi sued?
In June, San Francisco’s Kristen Cobbs sued VNGR Beverage LLC, a Texas-based company that manufactures, sells and sells Popi.
The class action lawsuit alleges that Poppi cans contain only 2 grams of prebiotic fiber. This means that “consumers need to drink at least four POPPI sodas in a day to realize their potential health benefits.” When consumers drink this many soda, the suit says that the high sugar content of poppi is the best offset by the reported gut health benefits.
Poppi said in a statement previously provided to USA Today on Monday that the company is standing behind its products.
“Poppi does not acknowledge negligence, liability or fraud. Instead, we are focused on bringing consumers the innovation they expect from the brands they love,” the company said. “We are thrilled to continue our passion for modernizing soda for the next generation.”
PepsiCo did not immediately respond to a request for comment on USA Today on Monday.
What is Popi?
Known for its bright and bold cans, Poppi is a soda containing prebiotics from agave insulin and cassava root fibers. Apple cider vinegar; juice; sugar according to the company’s website. One of the sodas is reported to contain less than 5 grams of sugar and less than 35 calories.
Poppi was first released in 2018 in the ABC series “Shark Tank.” Founders Allison and Stephen Ellsworth have accepted a $400,000 investment in exchange for 25% of guest Shark Rohan Oza’s company. As a mother’s drink known as Time, the soda was rebranded and the first Whole Foods Market shelves were branded.
“With the help of investing in shark tanks, Popi sat neatly from farmer’s market favorites on the shelves of all major retailers across the country,” the company’s website says Soda is “loved” by stars like Post Malone, Haley Bieber, Kylie Jenner, Billy Eilish, Jenniflew Mann Eilish and Gylie Eilish.
According to the lawsuit, Poppi’s sales exceeded $100 million by 2024, and drinks account for 19% of the U.S. market share, so those numbers continue to increase, 1.5 times more than Coke.
Editor’s Note: This story has been updated to add new information.
Gretacross is a national trend reporter for USA Today. Follow her on X and Instagram @gretalcross. Story ideas? Email her to gcross@usatoday.com.
