PepsiCo is closing in on a deal to acquire Austin-based soda brand Poppi for more than $1.5 billion, marking its latest move into the booming functional beverage market. According to sources familiar with the matter, the acquisition could be announced as soon as next week.

Poppi, co-founded by Allison and Stephen Ellsworth, first gained national attention in 2018 when it secured an investment from Cavu Venture Partners’ Rohan Oza on Shark Tank. Since then, the brand has grown into a dominant player in the fast-expanding functional soda category, attracting celebrity backers like Nicole Scherzinger and Ellie Goulding.

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PepsiCo had previously explored launching its functional soda under the Soulboost brand but scrapped the initiative due to weak early market signals. Instead, the beverage giant is now doubling down on acquisitions to capture health-conscious consumers. Poppi’s lineup, infused with prebiotics and marketed for digestive health benefits, has been a standout in the sector, with sales soaring over 60% at FreshDirect, according to the grocery retailer’s merchandising director, Loan Heilner. In contrast, traditional sodas have seen only modest gains.

The deal, while in its final stages, could still face delays, sources cautioned. PepsiCo declined to comment, and Poppi has yet to respond to inquiries.

The move follows PepsiCo’s recent acquisitions in the health-focused space, including its $1.2 billion deal for Siete Foods in October and its buyout of the remaining 50% stake in Sabra Dipping Co. a month later. CEO Ramon Laguarta has emphasized the growing consumer shift toward health and wellness, a trend that continues to shape the company’s strategy. Meanwhile, competition in the functional soda space is heating up. Coca-Cola recently launched Simply Pop, its prebiotic soda, signaling that the industry’s biggest players see long-term potential in the category. With Poppi under its umbrella, PepsiCo is positioning itself as a leader in the next generation of soft drinks.