PepsiCo said Monday that it is buying prebiotic soda brand Poppi for nearly $2 billion.
While soda consumption has broadly fallen over the last two decades in the U.S., prebiotic sodas, fueled by industry newcomers Poppi and Olipop, have won over health-conscious consumers over the last five years. The category’s growth makes it attractive for Pepsi and its rival, Coca-Cola, which recently launched its own prebiotic soda brand, Simply Pop.
Pepsi said it plans to acquire the upstart Poppi for $1.95 billion. The deal includes $300 million of anticipated cash tax benefits, making the net purchase price $1.65 billion.
Pepsi will also have to make additional payments if Poppi achieves certain performance milestones within a set time frame after the acquisition closes.
Pepsi did not say when the deal is expected to close, pending regulatory approval.
Poppi’s founders Allison and Stephen Ellsworth launched the brand back in 2018, the same year that Olipop was founded. Poppi’s formula includes apple cider vinegar, prebiotics and just five grams of sugar.Poppi’s founders Allison and Stephen Ellsworth launched the brand back in 2018, the same year that Olipop was founded. Poppi’s formula includes apple cider vinegar, prebiotics and just five grams of sugar.
