It was a massive $2 billion acquisition.
On March 17, PepsiCo Inc. announced its acquisition of the prebiotic soda brand poppi for $1.95 billion, with the deal also factoring in $300 million in expected tax benefits, reducing the net purchase price to $1.65 billion. This acquisition aligns with PepsiCo’s strategy to expand its product offerings for health-conscious consumers and strengthen its presence in the rapidly growing prebiotic soda sector. Ramon Laguarta, PepsiCo’s chairman and CEO, emphasized that poppi complements the company’s broader efforts to provide products that meet the increasing demand for health-focused and convenient beverages.
Poppi is known for its functional sodas made with prebiotics, fruit juice, and apple cider vinegar. The brand has gained popularity due to its low-calorie options, which contain no more than five grams of sugar per serving. Founded by Allison and Stephen Ellsworth, poppi caught national attention after appearing on Shark Tank and securing an investment from Rohan Oza, co-founder of CAVU Consumer Partners. Allison Ellsworth expressed how the brand was born from a desire to offer a healthier soda alternative and shared their excitement about the brand’s growth.
PepsiCo’s move to acquire poppi is part of a broader strategy to address declining sales in traditional soda and snack categories, which have faced challenges due to changing consumer preferences and price increases. Healthier alternatives like poppi and competitors such as Olipop have seen rising demand as consumers shift away from sugary drinks. In response to this trend, Coca-Cola also launched its own prebiotic soda line, Simply Pop, earlier this year, targeting the wellness-oriented consumer market with a similar focus on low sugar and added prebiotic fiber.
The acquisition deal includes potential earnout provisions based on poppi‘s future performance, and PepsiCo plans to leverage its commercial capabilities to help accelerate the brand’s growth. PepsiCo aims to expand innovation within poppi‘s product lineup, ensuring it can compete effectively in the growing health-focused beverage market. However, the deal is still subject to regulatory approval and other customary conditions before it can be finalized.
This acquisition is an indication of how major beverage companies are adapting to shifting market trends, with PepsiCo positioning itself to offer a wider range of healthier options to meet consumer demands for functional, low-sugar, and nutrient-rich drinks.
