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PepsiCo’s prebiotic pivot: Innovative move, or identity crisis?

After acquiring Poppi in May, PepsiCo is betting on its own legacy brand and launching Pepsi prebiotic cola. But not everyone is leaning in, with some raising questions about authenticity.

In July, PepsiCo announced its latest launch, a prebiotic soda range under its legacy brand, Pepsi. In a press release, the company claimed that the product line, which comes in two flavours – original cola and cherry vanilla – is “the first significant innovation in the traditional cola category in 20 years”.

It says the functional soda “tastes like only Pepsi can” but has been reformulated to “meet the changing consumer preferences for more functional ingredients” – and, with 5 grams of cane sugar, 5 grams of prebiotic fibre, and 30 calories per 250ml can, Pepsi claims the product line “rounds out a full portfolio of cola choices for today's consumer”.

PepsiCo’s prebiotic cola: ‘Less like a brand-building move and more like a defensive one’

The launch comes just two months after PepsiCo acquired cult favourite prebiotic soda brand Poppi for almost $2 billion, raising questions over PepsiCo’s strategy.

Ingredients Network sat down with brand strategy expert Christy Lebor to get her take on the launch.

Lebor has worked for prominent brands such as PepsiCo and Kraft Heinz and now holds the position of partner and head of strategy group at SmashBrand, a data-driven brand development firm specialising in CPG brands for retail.

Asked what acquiring Poppi, only to launch a prebiotic Pepsi, says about the company’s strategy, Lebor said: “To me, it says they're hedging. Instead of betting on Poppi, they’re betting around it.”

In the press release, Ram Krishnan, CEO of PepsiCo Beverages US, said the launch “represents the next leap forward in giving consumers choice, optionality, and functional ingredients in their cola experience, without sacrificing the iconic Pepsi taste we're known for delivering”.

Lebor, however, said the launch “feels less like a brand-building move and more like a defensive one”, adding that the acquisition of Poppi gave PepsiCo a front-row seat to a fast-growing disruptor, “and now they’re using that intel to retrofit the Pepsi brand into the same space”.

Running the risk of ‘turning a movement into a line extension’

Poppi is known for its distinctive neon-coloured cans and gut health-first approach, whereas Pepsi’s prebiotic soda retains its legacy cola look.

By keeping this new soda line under the Pepsi label, Lebor believes the company “risks turning a movement into a line extension, and in doing so, they [PepsiCo] lose the credibility and cultural cachet Poppi worked so hard to earn”.

She added: “Poppi isn’t just a drink – it’s a brand people want to be seen with. It stands for something new, fresh, and culturally in tune.”

Can dual positioning work in the wellness aisle?

Lebor described the launch as a “classic big-co trap” -which, to her, refers to the reflex to force innovation through the legacy brand instead of letting the new brand lead.

“Big companies often struggle to pick a lane – they want to protect the core while also chasing the next big thing,” she said, adding that brands can’t play offense and defence at the same time.

“When you put Pepsi Prebiotic on the shelf next to Poppi, you’re not expanding the market – you’re confusing it,” Lebor added.

This confusion extends to consumers choices.

“When in doubt, [consumers] default to the brand they feel better about. Poppi has the emotional edge. Pepsi has the distribution muscle. But only one has built its brand authentically around this ‘modern soda’ without any artificial baggage to lug around or explain away,” she said.

Can legacy brands retrofit themselves into wellness trends?

Lebor said that if PepsiCo truly believes in prebiotic soda as the future, it already owns the frontrunner, Poppi. Her advice would be to double down on Poppi and give it wings.

“Don’t dilute the movement by dragging it backwards into a brand that was built in a different era, for a different consumer,” she said.

She noted that other big food and beverage brands have fallen victim to this same act of retrofitting, and that in many cases, these moves can do more harm than good.

“Wellness isn’t a flavour. It’s a belief system. And when legacy brands try to wear it like a costume, people notice,” she added.