Poppi had a big coming-out this weekend when it gambled on a Super Bowl commercial – a last minute purchase that turned into one of the most viewed and talked about ads of the night, according to some polls. Then, yesterday, Bloomberg reported the rumor that many entrepreneurs would cut off a limb to hear: Coca-Cola is looking into buying the company. The article cited anonymous sources “with knowledge of the matter” who said a deal is not imminent, but suggested the Atlanta-based beverage giant is “among suitors” with an interest in acquiring the brand. Coke didn’t comment for the story. Nor did chief Poppi investor Cavu Venture Partners. However, Beverage Business Insights reported yesterday that Poppi CEO Chris Hall told them “this is not true,” but said the brand was “flattered by the press recognition.” For an eight-year-old startup that now claims it’s on track to be a billion-dollar brand, a sale to Coke doesn’t sound too absurd. NielsenIQ reported Poppi’s dollar sales in U.S. retail were up 227% in the 52-week-period ending January 27, and the brand is currently in over 20,000 doors nationwide. In December 2022, it closed a $25 million Series B round led by Cavu, the firm co-founded by Poppi investor Rohan Oza, who helped to sell Glaceau to the strategic – his former employer – in 2007 for $4.1 billion. Meanwhile, there’s been plenty of news around Olipop, Poppi’s chief rival, which was reported by Pitchbook as being valued at around $200 million just last April – and has likewise been subject to acquisition rumors in the media. So the category buzz is there, and it’s getting more bees: yesterday we reported that the Tom First-led Culture Pop had pulled in $21 million in new investment (see below). As big kombucha brands like Brew Dr and Health-Ade keep rolling out their own gut pops to keep up with the competition, there’s even more of a pipeline to the product type. If a deal between Poppi and Coke were to come to pass, it would be the beverage giant’s first acquisition since it purchased BodyArmor for $5.6 billion in 2021. Some observers may question how that brand has fared in Coke’s portfolio since then given recent sales declines, and its slashing of past acquisitions like Honest Tea, Zico and Odwalla may also raise eyebrows. But with Poppi, you have a brand competing in the company’s premier category – soda – and delivering the exact better-for-you position the big CSD producers have long been courting. While they might not be innovating on gut health sodas (yet), better-for-you has nevertheless been a huge driver for Coke and co. Just look at Coca-Cola Zero Sugar, which the company has frequently cited as one of its best performing product lines, and the “Zero” terminology is resonating, having been picked up by PepsiCo and KDP as well. An acquisition from the BFY CSD set does have some logic behind it. Coke struggled to grow its in-house take on sparkling water, AHA, so there’s no guarantee it could easily win just by making its own prebiotic brand. Coke has notably continued to win with CSDs, pointing to it as one of its best performing categories during its earnings call this week, helping to offset declines in coffee and sports drinks. So if it’s a leak coming from an investor, someone shepherding the deal, the brand, a rival, or even Coke itself, it’s not surprising to see an interested party want to float the idea and see what happens. It’s a juicy story for the media and a brand that’s clearly in the public eye via the biggest spectacle on TV, and aside from a few broken covenants, what’s the harm? Whether there’s truth to the rumor or not, Bloomberg’s report is a sign of the times – namely that Poppi and its “soda of the future” position is earning serious mainstream attention from consumers and the industry. Poppi has already said it has big plans this year for its expansion, marketing and innovation. We’ll have to wait and see if those plans end up including an exit. | 
