Overview

• PepsiCo announced the acquisition of prebiotic soda brand Poppi for $1.95 billion, with a net purchase price of $1.65 billion after tax benefits.
• Poppi, founded in 2018, has gained popularity for its low-sugar, prebiotic-infused sodas marketed as a healthier alternative to traditional soft drinks.
• The acquisition aligns with PepsiCo's strategy to grow its 'better-for-you' offerings, following its recent purchase of Siete Foods and other health-focused brands.
• The deal is subject to regulatory approval, with no timeline for closure disclosed, as Poppi continues to face legal challenges over its health claims.
• Competition in the functional beverage market is heating up, with Coca-Cola recently launching its own prebiotic soda brand, Simply Pop.