Poppi Faces Class-Action Lawsuit Over Misleading Gut Health Claims, Soda Maker Calls Allegations Unfounded

Poppi is being sued for allegedly misleading consumers with its prebiotic soda health claims, which a customer argues are not as effective as advertised.

Filed in the U.S. District Court in San Francisco, the lawsuit contends that the soda’s prebiotic content is insufficient for the health benefits the company claims. The plaintiff, Kristin Cobbs, is seeking compensation for herself and others.

What Happened: The lawsuit was filed last week, as reported by AP News on Tuesday. Cobbs alleges that the prebiotic agave inulin fiber in Poppi drinks is only around 2 grams, far below the 7.5 grams required for any meaningful prebiotic benefit.

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Poppi, based in Austin, Texas, has defended its product, stating that it has “diligently innovated” to provide a unique soda experience.

“We believe the lawsuit is baseless, and we will vigorously defend against these allegations,” said the company in a statement, according to the report.

Why It Matters: The lawsuit against Poppi comes amid a surge in the functional beverage market, which claims to enhance health and wellness. According to data from consulting firm AlixPartners, U.S. sales of prebiotic and probiotic drinks more than tripled last year.

Last month, the co-founder of Poppi, Allison Ellsworth, denied talk that a larger beverage company was interested in acquiring the brand, according to a Retail Dive report. Bloomberg reported in February that Coca-Cola Co (NYSE:KO) was among the suitors for Poppi.

Photo Courtesy: ZikG on Shutterstock.com

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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal