PepsiCo is officially in the prebiotic soda market: the food and beverage giant this week finalized its $1.95 billion acquisition of Poppi, one of the brands that has helped propel the functional beverage category that is forecast to reach $62 billion in sales by 2027 from $50 billion in 2022.

“[Poppi’s] rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio. We are excited to scale poppi’s momentum and unlock new growth through our capabilities — we’re just getting started,” said Ram Krishnan, CEO of PepsiCo Beverages U.S., in a press statement announcing the deal’s closure.

PepsiCo called out Poppi’s “community- and culture-first approach,” inclusive of its social media presence, viral TikTok campaigns and influencer partnerships that have helped the brand engage crucial Gen Z and millennial audiences. That marketing strategy was on full display last month with the launch of Poppi’s latest flavor, Alpine Blast. With a citrus taste, 55mg of caffeine and its mountainous moniker, Alpine Blast appears to be the latest prebiotic soda to take on PepsiCo’s Mountain Dew, following a cheeky campaign from competitor Olipop around its Ridge Rush product.

Gaming as a ‘no brainer’

With the introduction of Alpine Blast, Poppi made its first marketing push into gaming — a space that has long been associated with soda, including Mountain Dew —  with several cultural activations.

“Soda has integrated seamlessly with gaming culture from the beginning,” said a Poppi spokesperson in emailed comments. “As a digital-first brand, it’s a no-brainer to bring their better-for-you sodas into this space.”

To put itself on one of the most popular gaming platforms for brands and consumers, Poppi teamed with licensed Fortnite studio Creator Corp to launch an exclusive Fortnite mini-game that was amplified by Twitch streamer Cody “Clix” Conrod. And in a shot at gaming nostalgia, the brand launched Alpine Blasters, a retro arcade-style game that saw about 126,000 plays in just four days. The top 1,000 players of the web-based game, of about 24,000 overall, received a branded mailer. 

The dual activations allowed the brand to reach multiple audiences — Gen Z and Gen Alpha in Fortnite, older arcade-era gamers in Alpine Blasters — and helped craft a “cross-generational conversation,” per the brand.

Coachella and beyond

In addition to the gaming activations, Poppi dropped an eight-piece, limited-edition merchandise collection on a microsite, with prices ranging from $12 to $120. Merch drops continue to be a way for brands to elevate themselves into culture. Some of those goods were on display in April at a Coachella-adjacent event that featured creators, friends of the brand and Coachella headliner — and Poppi investor — Post Malone.

The brand on April 12 hosted a BBQ-style kickback event with music, food, cocktails and ping pong. Along with Malone and influencers including Gavin Casalegno (“The Summer I Turned Pretty”), Bobby Pombo, Georgia Costello, Christina Kirkman, Luann Diez and Alexa Jay, the gathering featured two fans who won a trip to attend.

The launch of Alpine Blast allowed Poppi to get back on track after a Super Bowl ad and stunt campaign proved controversial and gave Olipop an opening to swipe at its rival. For Poppi, the backlash was an opportunity to listen, learn and vow to do more for its community.

“That campaign sparked a huge wave of attention, and we saw firsthand how powerful it is when traditional media and social storytelling work together,” a spokesperson said. “We’ve continued to build relationships with creators and community members, all of whom align with our brand, focusing on people who can translate that big brand moment into authentic, everyday conversations.”