Whether you've hosted a party recently, shopped at the grocery store for yourself, or simply stopped at a gas station while thirsty, you probably noticed the seemingly unending variety of beverage choices at your disposal.
It's enough to make even the choosiest of customer's head spin.
Related: Ulta CEO rings the alarm on a growing trend
Thanks to the decline in popularity of sugary carbonated sodas like Coke, beverage companies have been trying to years to bring back soda drinkers in more creative ways. Sometimes it's through a limited edition new flavor offering. Sometimes it's with a new drink entirely. And sometimes it's with a healthier alternative that consumer won't feel as guilty about drinking.
A lot of that guilt is due to an increased public awareness about the ills of sugar; health classes across the United States now teach students how easy – and potentially harmful – it is to consume 40 grams of sugar in one can of soda. Even commercials sponsored by large food and beverage conglomerates now tout how easy it is to replace your daily sugary soda with an unsweetened or alternatively sweetened drink, also made by said beverage giants.
Related: Walmart store managers are now earning an astounding income
We've seen it in Coca-Cola's (KO) recent forays into alternative beverages like Topo Chico. We've seen it with the rise of alternative beverages like Poppi, Oli Pop and Kombucha. Healthier drinks – or at least, drinks that purport to be healthier – are hot right now.
Popular beverage brand faces lawsuit
But one such beverage company has found itself embroiled in some troubles, after a recently filed class action lawsuit alleged that it's not quite as beneficial as it claims to be.
According to legal documents filed with the United States District Court for the Northern District Court of California, Poppi, which bills itself as a prebiotic drink, is instead "basically sugared water," with no real health benefits. At least not on the surface.
More restaurants:
- Popular restaurant chain filing for bankruptcy, closing all locations
- Starbucks makes big change customers will notice right away
- Nespresso, Keurig make biggest coffee changes yet
The suit stems from Poppi's claims that it offers its consumers beneficial prebiotic fibers in the form of inulin, which "may function as a prebiotic," the suit says, but doesn't necessarily, and instead "can lead to adverse health results."
Poppi also includes a small portion of apple cider vinegar in each drink for added gut health benefits.
Poppi may have to pay up
The lawsuit, which was filed by lead plaintiff Kristin Cobbs may result in Poppi paying up to $5 million when all is said and done.
The beverage company insists that “the lawsuit is baseless, and we will vigorously defend against these allegations.”
Poppi, which contains an average of 5 grams of sugar per can and 2 grams of fiber, is sold at many top food and grocery chains across the U.S., including:
- Target
- 7-Eleven
- Costco
- Kroger
- Publix
- Whole Foods
- Amazon
View the original article to see embedded media.
The drink skyrocketed in popularity after it was featured in "Shark Tank," making a deal with guest Shark Rohan Oza. The drink, which was originally sold to more holistic crowds at farmer's markets and local shops, jumped in sales and is now a favored beverage of celebrities like Kylie Jenner. It's also one of the most popular drinks sold on Amazon (AMZN) thanks to its eerily similar soda flavors, which include Doc Pop (similar to Dr Pepper), Cola (similar to regular Coke) and Root Beer.
"Poppi has quickly climbed the ranks as one of the most popular beverages in the United States," the suit writes, adding "As of 2024, Poppi’s sales figures have topped $100 million dollars and continue to grow, representing 19% in the US market share, even surpassing Coke by 1.5 times."
Related: Veteran fund manager picks favorite stocks for 2024
