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PepsiCo Snags Trendy Prebiotic Soda Brand Poppi in Billion-Dollar Deal
In a move signaling its interest in the burgeoning prebiotic soda market, PepsiCo announced Monday that it’s acquiring Poppi for nearly $2 billion. The deal, valued at $1.95 billion with an anticipated $300 million in cash tax benefits, puts the net purchase price at $1.65 billion.
Additional payments may follow if Poppi hits certain performance targets post-acquisition. The deal awaits regulatory approval.
This acquisition comes as traditional soda consumption continues its two-decade decline, contrasted by the rising popularity of prebiotic sodas among health-conscious consumers. Brands like Poppi and its competitor, Olipop, have spearheaded this growth, catching the attention of beverage giants. Coca-Cola recently launched its own prebiotic soda, Simply Pop, further illustrating the sector’s appeal.
Founded in 2018 by Allison and Stephen Ellsworth, Poppi boasts a formula containing apple cider vinegar, prebiotics, and only five grams of sugar. The brand’s recent second consecutive Super Bowl ad showcased its ambition to reach a broader audience.
However, Poppi’s growth hasn’t been without controversy. The company is currently navigating a lawsuit challenging its health claims.
Poppi’s competitor, Olipop, reached a valuation of $1.85 billion in its latest funding round, announced in February. Olipop’s CEO previously indicated that both PepsiCo and Coca-Cola had expressed interest in acquisition.