PepsiCo buys prebiotic soda maker Poppi in $3b deal
Make us a preferred source
Make us a preferred source on Google
The news: PepsiCo will acquire prebiotic soda brand Poppi for USD1.95 billion ($3.1 billion), including USD300 million in anticipated cash tax benefits, bringing the net purchase price to USD1.65 billion.
The deal also includes potential additional payouts if Poppi meets certain performance targets.
The numbers: The Austin, Texas-based company, which combines prebiotics, fruit juice and apple cider vinegar, saw US retail sales increase 122% in the 12 weeks through 22 February, reaching about a 1% share of the carbonated soft drinks market.
The context: PepsiCo’s acquisition expands its presence in the fast-growing functional soda segment, as consumers shift toward healthier beverages.
Coca-Cola recently announced plans to launch Simply Pop, a competing prebiotic soda, while Celsius Holdings and Keurig Dr Pepper have also moved into the space.
The broader soda industry faces scrutiny, with US Health and Human Services Secretary Robert F Kennedy Jr calling traditional soft drinks “poison” and some US states pushing to restrict soda purchases with food aid benefits.
The sources: PepsiCo release , Reuters
