PepsiCo to acquire prebiotics soda brand Poppi for US$1.95B
PepsiCo has agreed to acquire Poppi, a prebiotic soda brand, for US$1.95 billion. The move is part of the beverage giant’s expansion into the better-for-you market. The Poppi brand began as a start-up, which shot to fame after an appearance on the television business competition Shark Tank. PepsiCo’s shares were up 1.8% today.
The transaction includes US$300 million of anticipated cash tax benefits for a net purchase price of US$1.65 billion. An additional potential earnout consideration is also set and subject to achieving certain performance milestones within a specified period.
“We’ve been evolving our F&B 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 of 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.”
The transaction is subject to customary closing conditions, including regulatory approval. Additional terms of the acquisition were not disclosed.
Functional sodas
Poppi combines prebiotics, fruit juice, and apple cider vinegar to create low-calorie sodas with no more than five grams of sugar per serving. The company says its consumer-first approach, cultural cache, and nutritional profile have built a loyal fan base and driven rapid growth.
Poppi was created by Allison and Stephen Ellsworth, discovered on Shark Tank by Rohan Oza, and funded by CAVU Consumer Partners from its initial seed round.
“As we look to reorient our portfolio offerings to address white space consumer needs, the Poppi brand’s unique intersection with wellness and culture is a perfect addition to our portfolio,” said Ram Krishnan, CEO of PepsiCo Beverages US.
“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.”
Rohan Oza, co-founder at CAVU Consumer Partners, says: “Poppi is a true testament to the American Dream. From the kitchen to Shark Tank to becoming an iconic brand, this couldn't have been done without the amazing founders.”
