On March 17, PepsiCo announced its acquisition of the prebiotic soda brand Poppi, a rapidly growing name in the beverage industry. The deal, valued at $1.95 billion, includes $300 million in anticipated cash tax benefits, bringing the net purchase price to $1.65 billion.
This acquisition aligns with PepsiCo’s ongoing strategy to diversify its beverage portfolio with health-conscious options.
The transaction is subject to customary closing conditions, including regulatory approval, and undisclosed additional terms.
The Rise of Poppi: From Kitchen Creation to Shark Tank Success
Poppi was founded in 2015 by Allison Ellsworth and her husband, Stephen Ellsworth, who originally developed the soda in their kitchen. The brand gained widespread recognition after appearing on Shark Tank in 2018, where it secured investment and set the stage for rapid expansion.
“We had a clear mission to create a functional soda that stands the test of time,” Allison Ellsworth stated in the press release.
Poppi’s formula features a combination of prebiotics, fruit juice, and apple cider vinegar, offering a low-calorie alternative with no more than five grams of sugar per serving. Its consumer-first approach, cultural appeal, and nutritional benefits have driven its loyal fan base and rapid growth in the market.
PepsiCo’s Strategic Vision for Healthier Beverages
PepsiCo’s Chairman and CEO, Ramon Laguarta, emphasized the company’s commitment to expanding its product lineup with healthier alternatives.
