PepsiCo, Inc. (PEP) Finalizes Poppi Acquisition, Advancing Its Strategic Portfolio Shift

PepsiCo, Inc. (NASDAQ:PEP) announced that it has completed the acquisition of poppi in a deal valued at $1.95 billion. This figure includes an estimated $300 million in expected cash tax benefits, bringing the net purchase price to roughly $1.65 billion. The agreement also features a performance-based earnout, tied to the achievement of specific business goals.

Known for its rapidly growing line of prebiotic sodas, poppi is now part of a series of recent acquisitions by PepsiCo, Inc. (NASDAQ:PEP), including brands like Siete and Sabra, that reflect the company’s effort to cater to consumers’ increasing interest in wellness-focused products. The deal represents another major move in PepsiCo’s broader portfolio transformation strategy, underlining its focus on delivering flavorful and functional offerings. The acquisition was initially announced in March, when PepsiCo, Inc. (NASDAQ:PEP) confirmed it had entered into a definitive agreement to acquire the brand.

poppi was founded in 2018 by Allison and Stephen Ellsworth. The brand's beverages are made with ingredients like apple cider vinegar, prebiotics and contain only five grams of sugar. Although traditional soda consumption in the U.S. has declined over the last 20 years, prebiotic sodas—led by rising brands like poppi—have gained popularity among health-focused consumers in recent years.

Ram Krishnan, CEO of PepsiCo Beverages U.S., made the following statement regarding this acquisition:

"poppi represents a compelling strategic fit within our short- and long-term vision for the future of beverages. Its rapid growth, strong consumer engagement, and differentiated functional positioning make it a dynamic addition to our portfolio. We are excited to scale poppi's momentum and unlock new growth through our capabilities – we're just getting started."

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