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PepsiCo has announced its acquisition of prebiotic soda brand Poppi for $1.95 billion, marking a significant step in the food and beverage giant’s strategy to cater to increasing consumer demand for healthier options. The deal, which includes an estimated $300 million in anticipated cash tax benefits, brings the net purchase price to $1.65 billion.
Evolvig Portfolio
PepsiCo CEO Ramon Laguarta emphasized the company’s ongoing efforts to evolve its portfolio through innovation and strategic acquisitions. “For years, we have been transforming our food and beverage offerings by introducing better-for-you options and making disciplined, strategic acquisitions that allow us to provide more positive choices to consumers,” Laguarta said in a statement Monday.
He highlighted the growing consumer interest in health and wellness, stating, “Now, more than ever, people are seeking choices that align with their lifestyles and nutritional needs.”
From Farmers Markets to Nationwide Success and now Bought By PepsiCo
Poppi, founded by a family in Austin, Texas, has gained popularity as a low-calorie, prebiotic soda that blends fruit juice with gut-friendly ingredients. Each serving contains no more than 5 grams of sugar, appealing to health-conscious consumers.
The brand’s journey began at local farmers markets, where its home-brewed formulation first gained traction. Poppi’s breakthrough moment came on ABC’s “Shark Tank,” where it secured a substantial investment that helped propel its availability in major retailers across the United States.
PepsiCo Targetting Prebiotic Soda Market
PepsiCo is not alone in targeting the prebiotic soda space. Rival Coca-Cola recently launched its own health-focused soda, Simply Pop, which debuted last month in select regions, including the West Coast, Southeast, and online via Amazon Fresh.
Becca Kerr, Coca-Cola’s CEO of nutrition, noted the company’s decision was driven by changing consumer preferences. “We discovered that wellness-focused Gen Z-ers and millennials were really interested in juice and prebiotic sodas,” Kerr said in a statement.
With the prebiotic soda market projected to reach a value of $54.5 million by 2034, according to Future Market Insights, both beverage giants are positioning themselves to capitalize on this growing trend.
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