PepsiCo to acquire prebiotic soda brand poppi
PepsiCo Inc. announced Monday, March 17 that it has entered into a definitive agreement to acquire poppi, the prebiotic soda brand, for $1.95 billion.
Image courtesy of PepsiCo
PepsiCo Inc. announced Monday, March 17 that it has entered into a definitive agreement to acquire poppi, the prebiotic soda brand, for $1.95 billion. With $300 million of anticipated cash tax benefits, the net purchase price for poppi comes to $1.65 billion. The transaction includes additional potential earnout consideration that is subject to the achievement of performance milestones within a specified period following the closing of the transaction. Poppi is considered one of the fastest-growing functional soda brands on the market, combining prebiotics, fruit juice, and apple cider vinegar to create low-calorie sodas with no more than five grams of sugar per serving. The company was founded by Allison and Stephen Ellsworth, and discovered on Shark Tank by Rohan Oza. The company was funded by CAVU Consumer Partners from their initial seed round to today.
"We've been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers," said Ramon Laguarta, chairman and CEO of PepsiCo in a press release. "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. poppi is a great complement to our portfolio transformation efforts to meet these needs."
According to Ram Krishnan, CEO of PepsiCo Beverages U.S., the company is looking to reorient its portfolio offerings to address white space in consumer needs. “Poppi brand's unique intersection with wellness and culture is a perfect addition to our portfolio," said Ram Krishnan, CEO, PepsiCo Beverages U.S. "Allison and the poppi team have built a magnetic brand that's ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth. We are big fans of the poppi brand movement and believe this incredible brand paired with our commercial capabilities will drive continued growth and innovation for years to come."
“We believe poppi is the soda that will be embraced for generations to come, and we're beyond grateful to the amazing poppi team, our partners who believed in us from the very beginning and most importantly our incredible community,” stated Allison Elsworth, poppi’s co-founder, in a press release. “We can't wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes poppi so special while supporting our next phase of growth and innovation. I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible."
