PepsiCo has announced its plans to acquire prebiotic soda brand Poppi for a total price of $1.95 billion. The deal, which includes $300 million in anticipated cash tax benefits, results in a net purchase price of $1.65 billion. As a strategic move by the food and beverage giant, this acquisition aims to enhance its beverage portfolio with the addition of the innovative and health-focused brand. Currently pending regulatory approval, the completion date for the acquisition remains undisclosed.
Poppi, founded by Allison and Stephen Ellsworth in 2018, has made a significant mark in the beverage industry with its prebiotic soda offerings. The brand's unique product line has attracted the interest of PepsiCo, as it aligns with consumer trends towards healthier and functional beverages. By incorporating Poppi into its lineup, Pepsi aims to strengthen its position in the rapidly growing sector of wellness-oriented drinks.
The acquisition deal also outlines potential additional payments to Poppi's founders. These payments hinge on the brand achieving specific performance milestones, although the exact timeline for these targets has not been specified. This arrangement signals Pepsi's confidence in Poppi's continued growth and success under its ownership.
While PepsiCo has not provided a definitive timeline for the deal's closure, the acquisition underscores its commitment to diversifying its product offerings and capitalizing on emerging consumer preferences. The integration of Poppi into Pepsi's extensive distribution network is expected to further elevate the brand's reach and visibility, potentially boosting its market presence.