PepsiCo Acquires Fast-Growing Prebiotic Soda Brand poppi for $1.95 Billion

PepsiCo, Inc. has entered into a definitive agreement to acquire poppi, a rapidly growing prebiotic soda brand, for $1.95 billion, inclusive of $300 million of anticipated cash tax benefits, making the net purchase price $1.65 billion. The acquisition may also include an additional potential earnout consideration based on achieving specific performance milestones after the transaction's closure.

poppi, known for its low-calorie soda with prebiotics, fruit juice, and apple cider vinegar, has garnered a loyal consumer base and rapid growth. All this was made possible by Allison and Stephen Ellsworth, who created the brand, and supported by CAVU Consumer Partners.

The transaction is subject to customary closing conditions and regulatory approval. PepsiCo was advised by Centerview Partners LLC and J.P. Morgan Securities LLC, with legal counsel provided by Cravath, Swaine & Moore LLP and Davis Polk & Wardwell LLP. On the other hand, poppi was advised by Goldman Sachs & Co. LLC and Cooley LLP. PepsiCo's net revenue in 2024 was nearly $92 billion, driven by its broad portfolio of beverage and food brands, while poppi's prebiotic soda has gained popularity through its unique flavors and low sugar content. The acquisition represents PepsiCo's continued efforts to expand its healthier product offerings and align with evolving consumer preferences.