One of the major advances in technology over the last decade or so is the way that drink makers can create the taste of sugar without actually using the substance. And this is something that America really wants, as the demand for products like flavored club soda and sugar-free sodas has boomed.
One of the biggest names in the sugar-free soda market is Poppi. Poppi has become such a sensation that the company was able to afford Super Bowl commercials the last two years. But Poppi will now be losing a fair amount of money, as the brand will be paying an $8.9 million settlement for false advertising.
The Makers of the Drink Claimed it Was a Prebiotic Soda
The makers of Poppi have always marketed their drink as being prebiotic, meaning healthy for your gut bacteria. The cans that contain the soda even include the tagline, “Be Gut Happy, Be Gut Healthy.”
In this way, the company was saying that not only was it bad for you, like a sugary soda, which could damage your health in several ways, but that by drinking Poppi, people were actually doing something good for their health.
A Class Action Lawsuit Was Filed
Some consumers were dubious about the claims Poppi was making, including Kristen Cobb, an attorney based in California. Cobb filed a class action lawsuit in her state, arguing that the benefits of the drink were too minuscule to be advertised on the can or in marketing material.
According to the lawyer, Poppi does contain Inulin, a non-soluble fiber, which could help people with their digestion. But Cobb argued that the amount of fiber from a single serving of Poppi only amounted to 2 grams, too small an amount to provide meaningful health improvement.
The Drink Maker Chose to Settle the Lawsuit
The lawsuit was first filed by Cobb in 2024, and it spent most of the year being worked out between the claimants and the company. This summer, Poppi decided to settle the lawsuit for $8.9 million, though the company did not admit to any wrongdoing.
Whether they felt the result was fair or not, it was likely a smart move for Poppi to settle. Going to court could have resulted in bad press for the brand. And with its momentum and popularity growing, bad press wasn’t something Poppi wanted to encounter.
People Who Have Purchased Poppi Could Be Entitled to Cash
Poppi has sold an awful lot of soda since its inception, and if you are one of the people who tried the drink, you may be entitled to compensation. Any of the purchases would have to have been made between January 23rd, 2020, and July 18th, 2025.
Customers who can provide either paper or electronic evidence that they purchased the soda in any size or flavor could be compensated up to .75 per can of soda, $3.00 per four-pack, $6.00 per eight-pack, and $9 per 12- or 15-pack.
Poppi Got Its Start Via the Television Show, Shark Tank
Poppi was started by a couple named Allison and Steven Ellsworth, who originally called it Mother Brand. The name was due to the inclusion of apple cider vinegar in their soda formula. Apple cider vinegar is often referred to as the “mother” because of its health benefits.
The couple brought their product to the show Shark Tank, where they received an investment of $400,000 from Rohan Odza. The company would change their name from Mother Brand to Poppi in 2020 to reach a different kind of customer.
After Heavy Investment, the Brand Rolled Out a Massive Ad Campaign
Following the appearance on Shark Tank, the brand began to catch fire. As it became more popular, more investors became interested. Poppi was able to raise $13.5 million in Series A funding and $25 million in Series B funding.
Thanks to the funding, the brand was able to make deals with a number of celebrities to endorse their product. Among the celebrities backing Poppi were Olivia Munn, Russell Westbrook, Kylie Jenner, Jennifer Lopez, Billie Eilish, Lucas Cruikshank, and Hailey Bieber. Poppi also rolled out Super Bowl commercials in 2024 and 2025.
This Should Be a Blip on the Radar Screen for Poppi
Things are continuing to go very well for Poppi despite the lawsuit. The brand was able to make an endorsement deal with star rapper Post Malone. The rapper was a perfect fit for the drink, as he was trying to cut traditional soda out of his diet.
Poppi is also starting to create endorsement deals with sports teams. They landed a major coup in 2025, inking a deal with the Los Angeles Lakers, one of the most prominent teams in all of the sports world.
Pepsi Purchased Poppi for a Startling Sum
The most successful companies are often purchased by a larger organization, but it usually doesn’t happen as quickly as it did for Poppi. And it usually doesn’t occur at such a huge price.
Despite only being founded in 2018, Poppi was purchased by Pepsi in 2025 for the price of $1.95 billion. When announcing the deal, PepsiCo noted that it believes Poppi represents the future of soft drinks. While Poppi has received impressive funding in the past, the cash infusion that is sure to come from a gigantic company like Pepsi.
Conclusion
Now that Poppi is under the Pepsi umbrella, the company will surely continue to compete against the giant in the industry, Coca-Cola, which will surely counter with its own sugar-free options.
The runaway popularity of Poppi shows that the market remains strong for drinks that are better for you. As long as they can keep creating flavors that people enjoy, the company will continue to grow.