PepsiCo Acquires Prebiotic Soda Brand Poppi in $2 Billion Health-Focused Deal
PepsiCo has acquired prebiotic soda brand Poppi for $2 billion, with a net purchase price of $1.65 billion after tax benefits. This strategic acquisition aims to strengthen PepsiCo's position in the growing health-conscious beverage market.
PepsiCo and Poppi company building
Poppi, known for its low-calorie prebiotic sodas containing fruit juice and no more than 5 grams of sugar per serving, gained national recognition after appearing on ABC's "Shark Tank." The Austin-based brand has since experienced significant growth, making it an attractive acquisition target.
The prebiotic soda market is expected to reach $54.5 million by 2034, according to Future Market Insights. This growth reflects increasing consumer interest in gut health and functional beverages. Competitor Coca-Cola has also entered this space with its Simply Pop prebiotic soda line, particularly targeting Gen Z and millennial consumers.
This acquisition enhances PepsiCo's existing health-focused portfolio, which includes:
- Naked Juice (fruit smoothies and cold-pressed juices)
- Kevita (fermented probiotic drinks)
- Bubly (zero-calorie sparkling water)
Consumer benefits from this acquisition include:
- Increased product availability
- Potential new flavors and product variations
- Improved distribution
- Enhanced accessibility through PepsiCo's established network
PepsiCo CEO Ramon Laguarta emphasized that this acquisition aligns with the company's long-term strategy of offering healthier beverage options while responding to changing consumer preferences for functional and better-for-you products.
The move demonstrates PepsiCo's commitment to leading the functional beverage category while addressing growing consumer demand for health-conscious alternatives to traditional sodas. With PepsiCo's resources and distribution network, Poppi is positioned for significant expansion in the competitive beverage market.