Global consumer goods giants PepsiCo and Unilever have strengthened their positions in the fast-growing health and wellness market through major acquisitions aimed at meeting evolving consumer preferences for functional products.
PepsiCo announced on May 19, 2025, that it had completed its acquisition of poppi, a rapidly growing prebiotic soda brand, for $1.95 billion. The deal includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion, along with a performance-based earnout tied to future growth targets.
The acquisition forms part of PepsiCo’s broader effort to reshape its portfolio around products that align with modern wellness trends. poppi joins other recent acquisitions, including Siete and Sabra, as the company seeks to expand its offerings in the functional food and beverage space.
“poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages,” said Ram Krishnan, CEO of PepsiCo Beverages U.S. “Its 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.”
Founded by husband-and-wife duo Stephen and Allison Ellsworth, Austin-based poppi markets itself as a modern alternative to traditional soda. Its beverages combine prebiotics, fruit juice and apple cider vinegar, with no more than five grams of sugar per serving. The brand has built a strong following among Gen Z and millennial consumers through social media campaigns, influencer partnerships and a distinctive visual identity.
“PepsiCo’s belief in the poppi brand is a tremendous validation of the work we’ve done to advance our mission,” said Chris Hall, CEO of poppi. “Their partnership and resources will be instrumental as we scale to our next phase of growth. We’re incredibly grateful to our passionate community and look forward to welcoming even more consumers into the poppi portfolio.”
Meanwhile, Unilever has moved to strengthen its wellness and supplements business through the acquisition of a majority stake in Nutrafol, a leading hair wellness company. The Anglo-Dutch consumer goods group already held a 13.2% minority stake in Nutrafol through Unilever Ventures. Financial terms of the transaction were not disclosed.
Founded in 2016, Nutrafol has built its business around nutraceutical products designed to address multiple causes of hair thinning and hair health issues, including hormonal, environmental and hereditary factors. The company says its formulations are supported by clinical research and are recommended by more than 3,000 physicians across the United States.
The brand will continue to operate from New York under the leadership of CEO Giorgos Tsetis and will become part of Unilever’s Health & Wellbeing division, which includes brands such as OLLY, Liquid I.V. and Onnit.
“I am delighted to welcome Nutrafol to the Unilever family. Nutrafol and its holistic approach to hair health is the perfect complement to our growing portfolio of innovative wellness and supplements brands. I am confident that with the full support of Unilever behind Nutrafol, Giorgos and the team will continue to take this fast-growing business to even greater heights,” said Fernando Fernandez, President, Beauty and Wellbeing for Unilever.
Giorgos Tsetis, co-founder and CEO of Nutrafol, described the transaction as a natural next step for the company.
“Joining forces with a leading global organization like Unilever, and all the resources and scale that comes with that, is the natural evolution in our mission to help people grow into their best selves through wholebody health. I am so thankful to the Nutrafol team for all we have accomplished together. The Unilever family will be a great home for us as we continue to move the industry forward with new innovations to support the needs of consumers at every point of their hair health journey.”
Nutrafol co-founder and Chief Innovation and Product Officer Roland Peralta added: “When we founded Nutrafol in 2016 it was inspired by our own experiences with thinning hair and the inability to find a natural, yet efficacious way to take control of our hair health. Nutrafol couldn’t be just another untested alternative to hair drugs and vitamins. Now we are proud to offer a suite of best-in-class, clinically backed products that help customers easily navigate and take control of their individualized hair needs.”
The two acquisitions highlight a broader industry shift as large consumer goods companies increasingly seek growth through brands positioned around health, wellness and functional benefits. Whether through prebiotic beverages or science-backed supplements, established players are investing heavily in products designed to appeal to consumers seeking healthier lifestyle choices.
