Did you check out a display of colorful “Poppi” sodas at the supermarket sometime between Jan. 23 2023 and July 18 of this year and decide to put one – or maybe a case – in your cart? You could be entitled to a settlement payout but you have just a few days left to claim it.
Here’s what you need to know about the $8.9 million settlement proposal.
Since its launch in 2018, Poppi has become an increasingly popular soda, especially after being featured in the show “Shark Tank” and in Super Bowl ads. CNBC reported that annual sales pf Poppi had crossed $100 million by 2023. This March, PepsiCo. Bought the brand for $2 billion.
These beverages are fizzy drinks that stand apart from traditional sodas due to the inclusion of apple cider vinegar and what the brand refers to as prebiotics. They come in a variety of flavors and some contain fruit juice.
Last May, a lawsuit was filed against VNGR Beverage, the parent company of Poppi on behalf of three plaintiffs -- Kristin Cobbs, Sarah Coleman, and Megan Wheeler. This complaint alleged that Poppi sodas have been improperly marketed with claims that they are “prebiotic” and “gut healthy” sodas.
“‘Prebiotics’ are a type of dietary fiber that stimulates the growth of healthy bacteria in the gut,” said the complaint. “These bacteria are known as probiotics.”
It went on to say that “Poppi claims to be a prebiotic soda due to its inclusion of agave inulin, a type of natural soluble fiber extracted from the agave plant that may function as a prebiotic.” According to the suit, inulin is “less effective than other prebiotic fibers at promoting gut health and has been linked to adverse effects such as bloating, abdominal pain, and even liver damage.”
Per the suit, all three of the plaintiffs purchased Poppi drinks due to the claims in the can about “gut health” and prebiotics. For example, it said “Cobbs would not have purchased the Products on the same terms had she known that those representations were not true,” and would not have paid as much for them.
“Defendant’s Poppi Soda only contains two grams of fiber, an amount too low to cause any meaningful gut health benefits or even considered a ‘fortified’ or ‘good source’ of fiber, in contravention of [U.S. Food and Drug Administration] regulations,” the suit alleges. “Accordingly, a consumer would need to drink more than four Poppi Sodas in a day to realize any potential gut health benefits from Poppi’s prebiotic fiber. However, even if a consumer were to do that, Poppi’s high sugar content would offset most, if not all, of those gut health benefits.”
However, settlement website notes that the defendants deny that “there is any factual or legal basis for Plaintiffs’ allegations,” and contend that Poppi’s labelling is truthful and accurate. Furthermore, the defendants deny that plaintiffs or any other members of the Class have suffered injury or are entitled to monetary relief.
Still, the parties involved in the suit agreed during an all-day mediation last December that a settlement agreement would be a desirable way to settle the plaintiff claims. Plaintiffs believe a settlement fund of $8.9 million that allows class members to obtain payments is fair. Payment would be granted as follows: $0.75 per single can units $3 per four-pack units, $6 per eight-pack units and $9 per 12-pack units and 15-pack units. The minimum class payment for any approved claim is $5 per household and there is a $16 limit for class members who do not provide proof of purchase.
“This exceeds the damages that might be recovered at trial on a per-Unit basis,’ said the settlement site. “Furthermore, even if Plaintiffs succeeded at trial, it would be necessary for Class Members to make claims, because Defendant does not have records identifying the Class Members.”
Class payments may be reduced or increased pro rata depending on the number of approved claims and any leftover funds will go to a charitable organization. Lawyers who brought the claim to court have asked for part of the settlement fund to cover their expenses, that some go to $15,000 in total for “Service Awards” going to the plaintiffs and that some go to settlement administration Verita Global, LLC.
The settlement site also stresses that consumers’ legal rights will be affected whether or not they act by Sept. 26. That’s the deadline to submit a claim form here for a class payment. Consumers can also choose to opt out by that date or file an objection. Information about the options is available here.
So far, the court has not decided regarding the settlement and interested parties can attend the Nov. 20 hearing where a judge is expected to determine whether the settlement is fair. If the settlement isn’t approved the lawsuit will continue.
Those who do not respond by Sept. 28 will not receive a payment and will have no right to sue later for the claims outlined in the suit, according to the settlement website. Still, filing a claim does not guarantee a payment. If the court approves the settlement, payments will be distributed within 90 days after the settlement is no longer subject to appeal or review, unless otherwise ordered by the court.