PepsiCo Acquires Prebiotic Soda Brand Poppi for $1.95 Billion

The acquisition strengthens PepsiCo's push into health-focused beverages as consumer demand for low-sugar, functional drinks grows.

PepsiCo announced its acquisition of Poppi for $1.95 billion, including $300 million in anticipated cash tax benefits, with a net purchase price of $1.65 billion.
The deal aligns with PepsiCo's strategy to expand its portfolio with 'better-for-you' products in response to declining demand for traditional sodas.
Poppi, founded in 2015 and rebranded after a 2018 'Shark Tank' investment, markets low-calorie sodas with prebiotics, fruit juice, and apple cider vinegar.
The functional beverage market, including prebiotic sodas, is projected to grow significantly, with sales expected to reach $2 billion by 2029.
Poppi has faced legal challenges over its health claims, settling a class-action lawsuit for $8.9 million while continuing to expand its market share.