Dive Brief
- Poppi Prebiotic Sodas, faces a class-action lawsuit over false advertising. According to the complaint filed last week, lead plaintiff Kristin Cobbs alleged the prebiotic soda brand claims to provide “prebiotic” benefits despite it being “basically sugared water.” The complaint said aggregate claims in the class action exceed $5 million.
- According to documents filed with the United States District Court for the Northern District Court of California, the brand’s “prebiotic” claims stem from its use of the ingredient agave inulin — a natural, soluble fiber from agave plants. Though the suit acknowledged agave inulin “may function as a prebiotic,” it also stated that many adult consumers can gain benefits from prebiotics in a regular diet drink. Further, the suit said, consuming too much inulin “can lead to adverse health results.”
- A spokesperson with Poppi said the company “stands[s] behind our products” and that it believes “the lawsuit is baseless, and we will vigorously defend against these allegations.”
Dive Insight
Celebrities Kylie Jenner and Billie Eilish are among Poppi’s consumers. So was “Ms. Cobbs,” a resident of San Francisco, according to the complaint.
“Ms. Cobbs paid a substantial price premium due to Defendant’s false and misleading claims regarding the Products’ purported health benefits,” the complaint said. “Ms. Cobbs, however, did not receive the benefit of her bargains because the Products did not, in fact, contain enough ‘prebiotics’ to achieve any meaningful ‘gut health.’”
With flavors such as Doc Pop, Ginger Lime and Classic Cola, Poppi sales have topped $100 million due to its nationwide presence in more than 120 major retailers including Target, 7-Eleven, Costco, Kroger and Whole Foods. The brand also is the top-selling soft drink on Amazon. Poppi has posted triple-digit growth in recent years — a goal it expects to reach again in 2024.
The complaint said a can of Poppi contains 2 grams of prebiotic fiber. A consumer would need to drink more than four cans in a day to realize the health benefits, though the complaint said that would be offset by the sugar content. Poppi said its beverages have 5 grams of sugar and 25 calories, or fewer, in each can.
Class action lawsuits targeting the food and beverage industry have become a phenomenon during the past few years. Scott Hardy, president and CEO of litigation tracking website Top Class Actions, previously told sister publication Food Dive these lawsuits are a way for consumers to take on large manufacturers.
“You have a problem with a big corporation and you can’t sue them on your own for … [feeling cheated] out of $5 a month or 50 cents a purchase. But if you and 100,000 other people had that same problem, you should have a way to get it fixed,” Hardy said in 2021.
Texas-based Poppi was created by Allison Ellsworth and her husband Stephen in their kitchen after she experienced gut problems. Its fast growth has prompted rumors that it could be an acquisition target by a larger beverage company such as Coca-Cola. Still, Allison told sister publication Food Dive last month that Poppi is not engaged in talks. Instead, the prebiotic soda maker is focusing its attention on growth.
