PepsiCo buys prebiotic soda brand Poppi for nearly $2 billion
PepsiCo said Monday that it is buying prebiotic soda brand Poppi for nearly $2 billion.
PepsiCo said Monday that it is buying prebiotic soda brand Poppi for nearly $2 billion.
While soda consumption has broadly fallen over the last two decades in the U.S., prebiotic sodas, fueled by industry newcomers Poppi and Olipop, have won over health-conscious consumers over the last five years. The category’s growth makes it attractive for Pepsi and its rival, Coca-Cola, which recently launched its own prebiotic soda brand, Simply Pop.
Pepsi said it plans to acquire the upstart Poppi for $1.95 billion. The deal includes $300 million of anticipated cash tax benefits, making the net purchase price $1.65 billion.
Pepsi will also have to make additional payments if Poppi achieves certain performance milestones within a set time frame after the acquisition closes.
Pepsi did not say when the deal is expected to close, pending regulatory approval.
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