Former poppi Beverage Owner Settles $9M Lawsuit

Prebiotic beverage brand poppi, which was recently acquired by PepsiCo, has settled a nearly $9 million class action lawsuit. The former company owner, VNGR Beverage, LLC, was sued over claims that its products are “gut healthy.”

According to last year’s legal filing, the amount of prebiotics in the drinks was too low to result in any meaningful gut health benefits and any gut health claims were misleading to consumers. At the time, poppi responded that it would challenge the lawsuit and stood behind its products.

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VNGR Beverage will not admit to any wrongdoing, but it will refund $8.9 million to the public as part of the settlement agreement. Customers who bought poppi drinks between Jan. 23, 2020 and July 18, 2025 can submit an online claim before Sept. 26 for refunds of $3 per four-pack, $6 per eight-pack, $9 per 12- or 15-pack and $0.75 for a single can.

In March, CPG giant PepsiCo announced that it was acquiring poppi. That $1.65 billion deal closed in May. "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.”