PepsiCo, Inc. has announced an agreement to acquire poppi, a prebiotic soda brand, for $1.95 billion. This amount includes an estimated $300 million in cash tax benefits, resulting in a net purchase price of $1.65 billion. The deal may also include potential earnout considerations based on the achievement of specific performance milestones following the transaction’s closing.
Ramon Laguarta, Chairman and CEO of PepsiCo, stated that the acquisition aligns with the company’s ongoing efforts to enhance its food and beverage portfolio. He noted that consumers increasingly prefer convenient and health-conscious options, and poppi fits this trend well. The brand offers a low-calorie soda made with prebiotics, fruit juice, and apple cider vinegar, containing no more than five grams of sugar per serving.
Poppi was co-founded by Allison and Stephen Ellsworth and gained initial recognition on the television show Shark Tank. The brand has grown rapidly, attracting a dedicated customer base due to its unique nutritional profile and cultural relevance. Ram Krishnan, CEO of PepsiCo Beverages U.S., highlighted the brand’s alignment with consumer wellness and its potential for further growth within PepsiCo’s portfolio.
Allison Ellsworth expressed her gratitude for the support poppi has received and emphasized the brand’s mission to create a functional soda. Rohan Oza, a co-founder of CAVU Consumer Partners and a guest on Shark Tank, praised the founders and the poppi community, indicating that the partnership with PepsiCo would enable broader access to the brand. Overall, this acquisition marks a significant step in PepsiCo’s strategy to adapt to evolving consumer preferences in the beverage market.