PepsiCo has announced its acquisition of poppi, a fast-growing prebiotic soda brand, for $1.95 billion, including anticipated cash tax benefits of $300 million, resulting in a net purchase price of $1.65 billion. The deal also includes an additional earnout consideration based on performance milestones.
This acquisition aligns with PepsiCo’s ongoing strategy to expand its better-for-you offerings, catering to evolving consumer preferences for healthier beverages. poppi, known for its prebiotic sodas made with fruit juice and apple cider vinegar, has gained a loyal following, including a strong cultural presence and celebrity endorsements.
Key details of the acquisition:
- poppi was founded by Allison and Stephen Ellsworth, initially gaining traction on Shark Tank with backing from Rohan Oza and CAVU Consumer Partners.
- PepsiCo plans to leverage its commercial capabilities to accelerate poppi’s growth and innovation.
- The deal is subject to regulatory approval and other customary closing conditions.
- Financial advisors: Centerview Partners LLC and Goldman Sachs & Co. LLC.
- Legal advisors: Cravath, Swaine & Moore LLP and Cooley LLP.
Strategic vision:
PepsiCo CEO Ramon Laguarta emphasized that this move complements the company’s broader efforts to diversify its portfolio with innovative and health-conscious choices. Ram Krishnan, CEO of PepsiCo Beverages U.S., highlighted poppi’s alignment with modern wellness trends.
Allison Ellsworth, poppi’s co-founder, expressed excitement about scaling the brand with PepsiCo’s support while maintaining its original mission and identity.
With this acquisition, PepsiCo continues to strengthen its presence in the functional beverage category, tapping into the growing demand for health-oriented sodas.
Wall Street2025-03-17
