Tijuana distributor seeks $250,000 from PepsiCo after Poppi partnership ends

Tijuana distributor seeks $250,000 from PepsiCo after Poppi partnership ends

The company says a product withdrawal at H-E-B, unpaid compensation and reputational damage left it with significant financial losses.

Por SanDiegoRed el July 31, 2026 at 11:32 AM PDT

A Tijuana-based beverage distributor is seeking approximately $250,000 in compensation from PepsiCo and soda brand Poppi following the end of its distribution agreement in Mexico. The claim, made by Inbevco through its affiliated company InBcMex, includes losses tied to a product withdrawal at H-E-B stores, compensation the company says remains unpaid after the contract ended and alleged damage to its commercial reputation.

PepsiCo and Poppi were contacted for comment regarding the allegations and the amount being claimed. Neither company had responded by the time this article was published.

A decades-long beverage business

Puffelis said his career in the beverage industry began in 1989, when he partnered with Seven Up bottlers operating in the Mexican states of Jalisco and Colima.

After that partnership ended, he continued independently, shifting the company’s focus toward importing, developing and distributing what are commonly known in the U.S. as new-age beverages.

Over the years, Inbevco has worked with brands including Snapple, Red Bull, Vitaminwater, VOSS Water and BodyArmor, maintaining relationships even with Coca-Cola when some of them were acquired by larger beverage companies.

Today, the company specializes in importing, labeling and distributing health-focused beverages, including organic, alkaline and probiotic drinks.

Distributor says losses exceed $250,000

According to Gustavo Puffelis, director of InBcMex, the company’s claim consists of two primary components.

The first involves nearly $90,000 in costs associated with H-E-B’s removal of more than 19,000 cans of Poppi from store shelves after a product with a passed best-before date was identified. According to documents provided by Inbevco, the retailer charged the company for the value of the products, labor related to the withdrawal, return logistics, taxes and projected lost sales.

The second portion of the claim totals roughly $70,000 and covers inventory, products already sold and other expenses related to the termination of the distribution agreement. Puffelis said the remaining balance reflects broader business losses, including damage to the company’s reputation following the dispute.

A partnership that ended after PepsiCo’s acquisition

Inbevco distributed Poppi in Mexico for about 18 months before the agreement ended in August 2025, two months after the company received notice that the contract would be terminated.

The timing followed PepsiCo’s acquisition of Poppi, a move Puffelis said he expected. What surprised him, however, was the very short 60-day transition period provided to wind down operations in Mexico.

Puffelis said that in previous partnerships involving brands later acquired by multinational beverage companies, distributors were typically allowed to continue operating for one or two years after the acquisition.

He argues that two months was not enough time to fulfill outstanding purchase orders, manage inventory, service retail customers and close existing commercial commitments.

According to Puffelis, Inbevco invested more than $250,000 promoting Poppi in Mexico through inventory purchases, taxes, marketing, travel and retail placement.

He said the company introduced the brand to retailers at a time when few Mexican consumers were familiar with it outside of cross-border shoppers who had seen the product in Texas.

The H-E-B product withdrawal

The dispute escalated after an H-E-B store identified a can of Poppi that had passed its best-before date, prompting the retailer to remove multiple Poppi products from its shelves.

Documents reviewed by BuscaMedia show the withdrawal was classified as a quality issue related to product labeling or packaging, not a public health recall. The internal report instructed stores to hold the products until they could be collected.

According to Puffelis, H-E-B removed 19,358 units, charging Inbevco for the products, handling costs, taxes, returns and estimated lost sales. He estimates those charges totaled approximately 1.55 million pesos, or about $90,000.

Rather than destroying the beverages, Inbevco arranged for them to be donated. A letter dated May 7, 2026, stated that the “Best Before” label referred to product quality rather than food safety and authorized the beverages to be donated to the Monterrey Food Bank.

Disagreement over shelf life

Puffelis acknowledged that the distribution agreement did not require Poppi to deliver products with a minimum remaining shelf life. Instead, the contract stated that shipments would be made using the best available expiration dates.

However, he said Inbevco’s purchase orders consistently requested products with at least one year remaining before their best-before date.

According to Puffelis, many shipments arrived with only six to seven months of shelf life remaining. He said the time required for importation, labeling, customs clearance and distribution significantly reduced the period retailers had to sell the products.

He also said some shipments arrived using date formats that were unfamiliar in the Mexican market. And even though he requested bilingual documentation explaining the labeling system, he did not receive it at the time.

Compensation negotiations continue

Inbevco says it is also seeking compensation for products sold, remaining inventory and other obligations associated with the end of the distribution agreement.

Company documents value those claims at approximately $70,000, while Puffelis said Poppi’s counterproposal recognizes only a fraction of that amount.

Although the company says it has legal options, Puffelis acknowledged his preference is to reach a negotiated settlement rather than pursue litigation.

He also argued that the dispute has affected Inbevco’s reputation among retail customers, particularly because the H-E-B product withdrawal raised questions about product freshness and inventory management.

“We want to resolve this professionally without going to court,” Puffelis said, adding that the company’s immediate priorities are settling the H-E-B claim and reaching an agreement on the remaining compensation.

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