PepsiCo Officially Acquires Poppi For Nearly $2 Billion
In March, we reported that PepsiCo was close to acquiring functional soda brand Poppi. Now, it’s official, as Poppi is the newest addition to the beverage giant’s line of better-for-you drinks.
The acquisition came at $1.95 billion, with an estimated cash tax benefit of $300 million, for a net purchase price of $1.65 billion, per a press release. PepsiCo follows Coca-Cola, which launched Simply Pop in February, both responding to the growing popularity of functional sodas, particularly among Gen Z and millennial consumers looking for alternatives to traditional sugary drinks.
“Poppi represents a compelling strategic fit within our short and long-term vision for the future of beverages. Its rapid growth, strong consumer engagement and differentiated functional positioning make it a dynamic addition to our portfolio,” said Ram Krishnan, CEO of PepsiCo Beverages US.
Allison Ellsworth and husband, Stephen Ellsworth, started Poppi in 2015, turning it into one of the fastest-growing prebiotic soda brands on the market. Prebiotics are a specialized plant fiber that’s healthy for your gut microbiome, or in other words, food for the bacteria that keep your digestive system in proper order. The soda’s other ingredients include unfiltered apple cider vinegar, agave inulin, and no more than 5 grams of sugar and 25 calories.
“PepsiCo’s belief in the Poppi brand is a tremendous validation of the work we’ve done to advance our mission. Their partnership and resources will be instrumental as we scale to our next phase of growth. We’re incredibly grateful to our passionate community and look forward to welcoming even more consumers into the Poppi portfolio,” Chris Hall, CEO of Poppi, added.
