Beverage
Ex-poppi Owner Reaches $9M Legal Settlement
Poppi Reaches $9M Lawsuit Settlement Over Gut Health Claims
Consumers Can Now Claim Refunds After Legal Dispute With Former Owner
The poppi lawsuit settlement has reached a resolution, with nearly $9 million set aside for refunds to affected customers. The case stems from earlier claims about the drink’s gut health benefits, which led to a major class action.
Misleading Claims Spark Legal Action
Poppi, the prebiotic soda brand now owned by PepsiCo, previously operated under VNGR Beverage, LLC. That former owner faced a class action lawsuit. The core issue involved misleading claims about gut health.
The lawsuit argued that poppi drinks lacked sufficient prebiotics to deliver true digestive benefits. As a result, many customers felt misled by the brand’s marketing.
Poppi responded quickly at the time, defending its products and signaling its intent to contest the case. However, the brand’s ownership has since changed.
Terms of the Settlement
As part of the poppi lawsuit settlement, VNGR Beverage will pay $8.9 million to resolve the case. Importantly, the company denies any wrongdoing.
Still, customers who bought poppi drinks between January 23, 2020 and July 18, 2025 can now file for refunds. The settlement covers different product sizes:
- $3 per four-pack
- $6 per eight-pack
- $9 per 12- or 15-pack
- $0.75 per single can
Consumers must file claims online by September 26, 2025, to receive compensation.
PepsiCo Acquires Poppi Amid Settlement
While this legal battle unfolded, PepsiCo acquired poppi in a $1.65 billion deal that closed in May 2025. Despite the settlement, PepsiCo remains confident in poppi’s future.
“Poppi represents a compelling strategic fit within our short- and long-term vision for beverages,” said Ram Krishnan, PepsiCo Beverages U.S. CEO.
He emphasized poppi’s strong consumer engagement and functional appeal, despite recent legal issues.
What Consumers Should Know
Consumers still interested in poppi can continue to enjoy it. The current brand owners have not admitted fault or changed the product formula due to the case.
However, the settlement signals that marketing claims must reflect product performance. Moving forward, beverage companies may exercise more caution when promoting functional benefits.
Refund Claims Now Open
Customers eligible for refunds can submit their claims through the official settlement site. The deadline for all submissions is September 26, 2025.
This applies to anyone who purchased poppi during the outlined period, with no need to provide proof of purchase for small claims. However, receipts may increase claim amounts for larger purchases.
Final Takeaway
The poppi lawsuit settlement marks a turning point for functional beverage transparency. While poppi moves forward under PepsiCo, its past leaves important lessons for the industry.
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