Poppi, a prebiotic soda brand, has made a remarkable journey from a simple kitchen experiment to being acquired by PepsiCo for an impressive $1.95 billion. For a long time, investors were hesitant about beverage startups, worried about low profit margins and tough distribution challenges. However, Poppi is part of a new wave of “functional soda” companies that are changing the game and proving that there is a market for healthier beverage options.

This success story highlights how in...