PepsiCo to acquire healthier soda brand Poppi in nearly $2 billion deal
Posted on: Mar 17, 2025 23:16 IST | Posted by: Hindustantimes
PepsiCo Inc. testament acquire healthier soda brand Poppi for $1.95 billion, the Purchase, New York-based soda giant announced on Monday, confirming an earlier Bloomberg News report.
The deal includes $300 million in expected cash tax benefits for a net purchase price of $1.65 billion. PepsiCo will make additional payouts if Poppi meets certain performance metrics, according to the announcement.
The “functional soda” category has been growing, especially compared to standard sodas. The lower-sugar beverages can include ingredients not found in standard soda, such as prebiotics, probiotics and added fiber and say they are aimed at improving digestive health. Poppi uses prebiotics, fruit juice and apple cider vinegar and its drinks have 5 grams of sugar or less per serving.
Consumer demand for healthier products, combined with a wide variety of flavors and savvy social media marketing have catapulted these new soda brands, said Sean Harapko, leader of Americas supply chain transformation and global supply chain RPA at EY. Beverage behemoths like PepsiCo have the massive distribution networks that these upstart soda brands lack, he noted.
The acquisition “could immediately make Pepsi the leader in the fast-growing, $1 billion-plus US prebiotic soda market,” according to Kenneth Shea, a senior industry analyst at Bloomberg Intelligence.
Olipop, Poppi’s biggest competitor, closed a $50 million fundraising round in February. When combined, Poppi and Olipop claim a 2.7% share of the US carbonated-beverage market, up from 1.4% the year prior, Shea noted.
Coca-Cola Co., meanwhile, announced it was launching its own prebiotic soda brand called Simply Pop in February.
PepsiCo is working to diversify away from its standard soda and snacks by making acquisitions of healthier brands. In October, it announced plans to acquire snack food maker Siete Foods for $1.2 billion. The following month, it said it would buy the remaining 50% of Sabra Dipping Co. And PepsiCo-Strauss Fresh Dips & Spreads International GmbH.
“More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness,” said PepsiCo CEO Ramon Laguarta in a statement.
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