A renowned food and beverage manufacturer and an up-and-coming health-conscious soda company are joining forces.
PepsiCo, Inc. has agreed on a deal to acquire Poppi, a prebiotic soda brand, for $1.95 billion, which includes $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion, the company announced in a press release.
The move expands PepsiCo's product offerings and helps meet increasing consumer demand for healthier beverage options.
"We've been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers," says Ramon Laguarta, Chairman and CEO, PepsiCo. "More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. Poppi is a great complement to our portfolio transformation efforts to meet these needs."
Poppi combines prebiotics, fruit juice, and apple cider vinegar to create low calorie sodas with up to just five grams of sugar per serving. Some of the brand’s classic flavors include Cream Soda, Doc Pop, Orange, Strawberry Lemon, Cherry Cola, and Wild Berry. PepsiCo notes Poppi's consumer-first approach, cultural cache, and nutritional profile as drivers of a loyal fan base and rapid growth.
"When I created Poppi in our kitchen, it was fueled by a desire to create a better-for-you soda," states Allison Ellsworth, Co-Founder of Poppi. "We never imagined how many people we could reach through hard work, determination and a clear mission to create a functional soda that stands the test of time. We believe Poppi is the soda that will be embraced for generations to come, and we're beyond grateful to the amazing Poppi team, our partners who believed in us from the very beginning and most importantly our incredible community. We can't wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes Poppi so special while supporting our next phase of growth and innovation. I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible."
