PepsiCo Acquires Prebiotic Soda Brand Poppi For $1.95 Billion

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(RTTNews) - PepsiCo, Inc. (PEP) has officially completed its acquisition of poppi, a rapidly growing prebiotic soda brand, for $1.95 billion. This includes an estimated $300 million in cash tax benefits, bringing the net purchase price to $1.65 billion.

The agreement also features a performance-based earnout tied to specific business milestones. This acquisition is part of PepsiCo's strategic effort to reshape its product portfolio and cater to shifting consumer preferences towards functional and flavorful beverages. poppi joins other wellness-focused brands recently acquired by PepsiCo, such as Siete and Sabra.

According to PepsiCo Beverages U.S. CEO Ram Krishnan, poppi aligns strongly with the company's broader beverage strategy. He highlighted its unique functional benefits, fast-paced growth, and deep consumer engagement, stating that PepsiCo plans to accelerate poppi's momentum using its vast operational capabilities.

poppi, known for its low-calorie, prebiotic sodas made from apple cider vinegar, fruit juice, and natural ingredients, has successfully built a strong connection with Gen Z and millennials through bold branding, social media campaigns, and influencer collaborations.

Chris Hall, CEO of poppi, expressed appreciation for PepsiCo's support, viewing it as a major endorsement of poppi's mission to reinvent soda for the next generation. He added that PepsiCo's resources will be crucial in scaling the brand's reach and growth.

PEP is currently trading at $131.33 or 0.49% lower on the Nasdaq Global Select Market.