As Pepsi closes the deal on its $1.65 billion acquisition of Poppi (VNGR Beverages), the prebiotic soda maker is wrapping up another deal, this one with a class action group of consumers alleging they were misled by the drink’s gut-health claims.
The group asked the California federal judge presiding over the case to confirm a proposed $8.9 million settlement, a result it described as “exceptional compared with similar misleading beverage cases” in its motion for preliminary approval filed last Friday.
In a statement shared with BevNET this morning, Poppi stated: “The class action suit filed against poppi in May 2024 has been settled. poppi acknowledges no fault, liability, or wrongdoing, and instead, we are focused on bringing consumers the innovation they expect from the brand they love. We’re excited to move forward and continue our passion to modernize soda for the next generation.”
The total settlement, according to the filing, breaks down to 0.75 cents per single 12 oz. can, $3 per 4-pack, $6 per 8-pack, and $9 per 12-pack or 15-pack. The class includes anyone in the U.S. who purchased Poppi between Jan. 23, 2020, and the settlement notice date.
The three complaints lodged against Poppi last year, which were consolidated in September, take aim at one of the brand’s core pillars: gut health, as reflected in slogans like “gut health never tasted this good” and “for a healthy gut.”
The filings argued that the agave inulin Poppi uses as its primary source of prebiotic fiber was far too low to have any meaningful impact on the gut, and that the presence of sugars harms the balance of good bacteria in the digestive system.
The plaintiff’s motion to approve acknowledged the challenge of proving its allegations, which Poppi has denied and promised to defend itself “vigorously” in a potential trial. According to a report in Law360, the two parties have been in mediation over a settlement since December 2024.
“Although the $8.9 million gross settlement amount may be less than the maximum amount plaintiffs could potentially recover if fully successful at trial, it is reasonable in light of the risks to proceeding to trial,” the motion stated.
Beyond this case, Poppi has sought to move away from its focus on gut health and instead emphasize the brand as a lifestyle-oriented alternative to legacy sodas and CSDs. Speaking at the 2024 Beverage Forum last May, co-founder Allison Ellsworth said the company had found that most consumers simply drink Poppi for its flavor, not for functional benefits, and suggested the brand would continue to drive that message in its messaging.