On March 17, PepsiCo (Purchase, NY) announced it entered a definitive agreement to acquire Poppi (Austin, TX), the popular prebiotic soda brand, for $1.95 billion including $300 million of anticipated cash tax benefits.
The acquisition also includes additional potential earnout considerations subject to the achievement of certain performance milestones within a specified period after closing the transaction.
“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. “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.”
Poppi is a fast-growing functional soda brand that combines prebiotics, fruit juice and apple cider vinegar to create a low-calorie soda with no more than 5 g of sugar per serving. The brand was created by Allison and Stephen Ellsworth and debuted on Shark Tank in 2018.
“When I created Poppi in our kitchen, it was fueled by a desire to create a better-for-you soda. We never imagined how many people we could reach through hard work, determination and a clear mission to create a functional soda that stands the test of time,” said Poppi Co-founder Allison Ellsworth. “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. 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.”
The transaction is subject to customary closing conditions including regulatory approval. Additional terms of the acquisition were not disclosed.
For more information, visit www.pepsico.com or www.drinkpoppi.com.
