PepsiCo has acquired Poppi, a prebiotic soda startup known for its healthier beverage options, for a deal worth $1.95 billion. The net purchase price is $1.65 billion after considering $300 million in expected cash tax. The move is part of PepsiCo’s strategy to strengthen its presence in the health and wellness market.
The acquisition has a broad focus on fitness and lifestyle products as younger Americans move towards healthier sodas and energy drinks. Rival Coca-Cola is taking advantage of this trend by expanding its Simply brand with the launch of a prebiotic soda called “Simply Pop.”
“PepsiCo said Monday it would purchase prebiotic soda brand POPPI for $1.95 billion and expand into the ‘healthier soda’ category as it fights lower demand for traditional drinks and snacks.
Popi started out as a small startup in 2015, founded by Alison and Stephen Ellsworth. Originally known as a Mother ACV drink, the brand attracted attention after securing an investment from Rohan Oza in shark tanks in 2018. The company later rebranded it to Poppi and focused on prebiotic sodas made with Apple Cider Vinegar. Poppi has found a niche with health-conscious consumers and gained momentum through creative marketing on platforms like Tiktok.
Pepsico’s interest in Poppi reflects an approach to attracting brands that take advantage of growing consumer trends, such as Siete Foods’ previous purchases. The agreement highlights PepsiCo’s driving force in diversifying products that offer products that appeal to evolving preferences.
By adding Poppi to its portfolio, Pepsico will acquire rapidly growing brands and strengthen its position in the functional beverage market. This is a strategic bet that coincides with changing consumer preferences for wellness-oriented products that focus on health.
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