PepsiCo is buying Poppi, the popular prebiotic soda brand, in a $1.65 billion deal.The move marks PepsiCo맥스카지노�s further shift into the 맥스카지노�better for you맥스카지노� category as consumers shy away from sugar-filled drinks and unhealthy snacks. In January, the company bought Siete Foods, which makes gluten-free chips for $1.2 billion, and PepsiCo bought the remaining half of the Sabra hummus brand it didn맥스카지노�t own late last year.맥스카지노�We맥스카지노�ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers,맥스카지노� said Ramon Laguarta, CEO of PepsiCo, in a statement Monday.맥스카지노�More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. Poppi is a great complement to our portfolio transformation efforts to meet these needs,맥스카지노� he added.Harnessing PepsiCo맥스카지노�s major distribution agreements and marketing budget could give Poppi an advantage over rival Olipop, however both brands are still relative newcomers and have room to grow in terms of sales and awareness.Despite growing in popularity, only about 5% of consumers drink prebiotic sodas regularly, according to Zappi, a consumer research firm.맥스카지노�The challenge for these brands lies in the disconnect between brand awareness and functional understanding,맥스카지노� said Nataly Kelly, chief marketing officer of Zappi, told CNN. 맥스카지노�While most consumers have heard of prebiotic sodas, only about a third truly understand what they are and how they work.맥스카지노�The transaction is subject to regulatory approval and PepsiCo didn맥스카지노�t say when the deal would close.Poppi맥스카지노�s growthPoppi garnered a loyal fanbase since its appearance on 맥스카지노�Shark Tank맥스카지노� in 2018, when it was still called Mother Beverage. Poppi advertises its sodas as packed with prebiotics and apple cider vinegar that it claims can aid with gut health, although the health benefits on those claims are dubious.Pepsi맥스카지노�s competitor, Coca-Cola, hopped on the trend by launching its own line of prebiotic sodas, Simply Pop, last month. Other similar sodas have also entered the market in recent weeks including Spindrift Soda and Bloom Nutrition.맥스카지노�The gut soda wait-and-see period for major soda makers like PepsiCo and Coke is over. They have seen enough to jump in,맥스카지노� Duane Stanford, editor and publisher of Beverage Digest, said to CNN.PepsiCo맥스카지노�s plans to launch its own prebiotic soda brand based off its Soulboost beverages have been scrapped.But Poppi맥스카지노�s rise in popularity hasn맥스카지노�t been completely drama-free. The soda company drew backlash over Super Bowl weekend last month for gifting full-sized Poppi vending machines to influencers, from social media users who called it out of touch.Despite the controversy, the market for healthy soda doesn맥스카지노�t seem to be slowing down.The functional beverage sector, which is the industry phrase for non-alcoholic drinks that advertise additional health benefits, is growing at a faster pace than regular sodas. The category is projected to generate $2 billion in sales by 2029, according to Coca-Cola맥스카지노�s research.Last month, rival Olipop received a $1.85 billion valuation after a $50 million funding round and that it turned a profit for the first time since its launch in 2018, doubling the previous year맥스카지노�s sales at $400 million. Poppi has not publicly disclosed its valuation.맥스카지노�We맥스카지노�ll see whose strategy plays out best 맥스카지노� buy like PepsiCo, or build with an existing brand, like Coke,맥스카지노� Stanford said. 맥스카지노�Much of that depends on whether this gut soda segment has long-term legs or is a mirage of our times.맥스카지노�