PepsiCo’s Acquisition of Poppi Reveals the Perfect Business Timing Most Leaders Miss

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PepsiCo’s $1.95B Poppi acquisition shows how strategic timing can drive success. Learn why timing matters in business decisions. | SUCCESS

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pink 12 oz can of Poppi Prebiotic Soda Raspberry Rose

When PepsiCo announced its $1.95 billion acquisition of prebiotic soda brand Poppi this week, it demonstrated a master class in strategic timing that business leaders of companies of all sizes should study.

PepsiCo’s move comes at a critical inflection point. As CEO Ramon Laguarta noted in the official press release, “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.” This acquisition represents years of market observation culminating in precisely timed action.

The company observed health-conscious consumers shifting away from traditional sodas and toward functional beverages. This strategic move is also enabling PepsiCo to compete with Coca-Cola’s Simply Pop prebiotic soda line, which has been gaining market share in the healthier alternatives segment.

Rather than playing catch-up through a lengthy product development cycle, PepsiCo’s acquisition gives them immediate entry into this growing market with an already established brand that has proven consumer appeal. While PepsiCo could have developed its own prebiotic soda internally, the company recognized that sometimes perfect timing means buying rather than building, especially when rivals have already established a foothold.

PepsiCo faced the classic strategic question: build capabilities internally or acquire them? According to Ram Krishnan, CEO of PepsiCo Beverages North America, Poppi represented a “white space” in their portfolio. By acquiring an established brand rather than developing a competing product, PepsiCo saved years of development time and millions in R&D costs.

This decision framework applies to businesses large and small. Consider whether the market window will remain open long enough for internal development. Sometimes, the perfect timing means decisively entering a market segment through acquisition rather than risking competitors establishing dominance while you build capabilities.

Timing isn’t just about market conditions—it’s also about finding the right partner at the right moment in their growth trajectory. PepsiCo identified Poppi when the brand had already built substantial consumer loyalty but before it reached a scale that would make acquisition prohibitively expensive.

Allison Ellsworth, Poppi’s co-founder, created the product with a clear mission: “to create a better-for-you soda.” This consumer-first approach aligns with PepsiCo’s portfolio transformation efforts, increasing the likelihood of post-acquisition success.

For leaders at any level, the PepsiCo–Poppi acquisition offers valuable lessons:

PepsiCo demonstrates that perfect timing isn’t just about recognizing market trends—it’s about knowing when to adapt through partnership rather than independent development. By applying these principles, businesses can identify and act on their own perfect timing moments.

Photo by Nicole Kandi/Shutterstock

Ashley Turner is a journalist with bylines at PopCulture.com, Business Insider, and TheWrap, among other notable publications. Her passion for writing began at the age of five when she stapled together her first picture book. When not researching her next story, Ashley can be found indulging in her favorite pastimes: napping, gaming, or exploring new destinations.

March 20, 2025PepsiCo’s Acquisition of Poppi Reveals the Perfect Business Timing Most Leaders Miss

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