PepsiCo has announced a definitive agreement to acquire the prebiotic soda brand poppi for $1.95 billion. The deal includes $300 million in anticipated tax benefits, bringing the net purchase price to $1.65 billion. PepsiCo also structured an additional earnout consideration based on specific performance milestones.
The company said in a press release that this acquisition strengthens PepsiCo’s position in the functional beverage market, aligning with the growing consumer preference for gut-health-focused drinks.
Expanding PepsiCo’s Health-Focused Offerings
PepsiCo Chairman and CEO Ramon Laguarta highlighted the company’s ongoing efforts to diversify its beverage portfolio.
“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,” Laguarta said. “Poppi is a great complement to our portfolio transformation efforts to meet these needs.”
Poppi is a low-calorie soda made with prebiotics, fruit juice, and apple cider vinegar. It contains no more than five grams of sugar per serving. Its functional benefits and bold flavors have helped build a strong consumer following.
The Prebiotic Soda Brand poppi Rapid Rise in the Beverage Industry
Founded by husband-and-wife team Stephen and Allison Ellsworth in Austin, Texas, Poppi started as a homebrew experiment. After gaining traction at local farmers’ markets, the brand secured investment through ABC’s Shark Tank and funding from CAVU Consumer Partners.
PepsiCo Beverages U.S. CEO Ram Krishnan noted that Poppi is a brand that resonates with modern consumers.
“Allison and the Poppi team have built a magnetic brand ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth,” Krishnan said. “We believe this incredible brand, paired with our commercial capabilities, will drive continued growth and innovation for years to come.”
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Poppi’s Next Chapter with PepsiCo
Allison Ellsworth, Poppi’s co-founder, emphasized the brand’s mission to provide a healthier soda alternative.
“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,” Ellsworth said. “We can’t wait to begin this next chapter with PepsiCo to bring our soda to more people.”
Investor and Shark Tank guest Rohan Oza praised the prebiotic soda brand poppi journey from a kitchen experiment to a national brand.
“We’re beyond thrilled to be partnering with PepsiCo so that even more consumers across America and the world can enjoy Poppi – a truly modern soda for the next generation,” Oza said.
The transaction is subject to regulatory approval and customary closing conditions. PepsiCo did not disclose additional terms of the acquisition.
With this move, PepsiCo solidifies its presence in the functional beverage market, positioning the prebiotic soda brand poppi as a key player in the growing health-conscious soda industry.