Poppi, a prebiotic soda brand, is facing a class-action lawsuit from one customer that alleges its health claims aren’t up to snuff.
Kristin Cobbs is behind this lawsuit and she argues that Poppi prebiotic soda doesn’t offer the gut benefits that it claims. She points to the fact that the soda only contains 2 grams of prebiotic agave inulin fiber.
Cobbs cites a study that shows improved gut health only comes after three weeks of consuming 7.5 grams of agave inulin daily. She then argues that consuming enough Poppi to meet this threshold would be outweighed by the increased sugar consumption.
Poppi has already given a response to the lawsuit over its prebiotic soda to the Associated Press.
“We are on a mission to revolutionize soda for the next generation of soda drinkers, and we have diligently innovated to provide a tasting experience that millions of people have come to enjoy. We believe the lawsuit is baseless, and we will vigorously defend against these allegations.”
What Does the Poppi Prebiotic Soda Lawsuit Mean to Coca-Cola?
At the moment, this lawsuit has nothing to do with Coca-Cola (NYSE:KO), but it might not remain that way. Coca-Cola is reportedly among the companies that is interested in acquiring Poppi.
Earlier this year insiders claimed that Coca-Cola was in negotiations with Poppi for an acquisition. The details of such a deal haven’t been revealed yet. It’s also possible this lawsuit could have a negative impact on any such agreement.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
