PepsiCo has announced a definitive agreement to acquire prebiotic soda brand poppi for USD $1.95 billion, including USD $300 million in anticipated cash tax benefits.
The net purchase price stands at USD $1.65 billion, with the deal also including potential earnout payments based on future performance milestones.
Ramon Laguarta, Chairman and CEO of PepsiCo, said the acquisition aligns with the company’s strategy to expand its beverage portfolio with health-conscious options.
“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.”
Founded by Allison and Stephen Ellsworth, poppi has gained popularity for its functional soda, which combines prebiotics, fruit juice, and apple cider vinegar, with no more than five grams of sugar per serving. The brand was first introduced on Shark Tank and has since grown with investment from CAVU Consumer Partners.
Allison Ellsworth, said when poppi was created in their kitchen, it was fueled by a desire to create a better-for-you soda
“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 can’t wait to begin this next chapter with PepsiCo to bring our soda to more people.”
Ram Krishnan, CEO of PepsiCo Beverages U.S., said the poppi brand’s unique intersection with wellness and culture is a perfect addition to its portfolio.
“Allison and the poppi team have built a magnetic brand that’s ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth. We are big fans of the poppi brand movement and believe this incredible brand paired with our commercial capabilities will drive continued growth and innovation for years to come.
The acquisition is subject to regulatory approval and customary closing conditions.
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