The news: Pepsi’s acquisition of Poppi isn’t going to plan. The soda brand is underperforming expectations and is on track to miss the growth benchmark required to trigger a bonus payment, according to Bloomberg.

PepsiCo now expects around $12 million in performance-based payments related to the acquisition, a significant downgrade from the $117 million it projected in June and the $278 million it forecast last December.

What it means: The revision in Poppi’s expected performance reflects the increasingly fast-paced nature of the food industry, where trends are quick to emerge and equally swift to fade. It also raises questions about whether big CPG companies like PepsiCo with sprawling portfolios can keep up the momentum of fast-growing brands after buying them.

More broadly, PepsiCo’s difficulty scaling Poppi could prove to be a cautionary tale for the many other CPGs counting on acquisitions to bolster their slate of “better-for-you” options and keep pace with food trends. While these purchases could give food manufacturers a short-term boost, companies need to ensure they can deliver a consistent pipeline of innovation to keep customers’ attention from drifting to the next buzzy thing.

Implications for food brands: While it can be difficult in this dynamic environment to distinguish between fads and more enduring trends, CPGs should focus their acquisition efforts on the brands most likely to have staying power. At the same time, companies need to ensure that these acquisitions are given the resources required to stay relevant, especially in a category as crowded as soda.

PepsiCo appears to be learning from its mistakes: The company plans to increase its investments in Poppi, along with the rest of its soda portfolio, and improve execution. It is also expanding Poppi’s range with two new product lines, Poppi Lift (which contains 70 milligrams of caffeine) and Poppi Chill (which has magnesium and L-theanine), to push deeper into functional beverages. Whether these initiatives will succeed will depend on the strength of PepsiCo’s marketing efforts and product development.

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