PepsiCo has finalized an agreement to acquire Poppi, a rapidly growing prebiotic soda brand, for $1.95 billion, which accounts for a net purchase price of $1.65 billion after anticipated tax benefits of $300 million. The deal includes potential additional earnings based on future performance milestones.
PepsiCo’s CEO, Ramon Laguarta, emphasized the company’s ongoing strategy to diversify its beverage portfolio with health-conscious options. He highlighted Poppi’s alignment with consumer demand for convenient, wellness-focused products. Poppi, created by Allison and Stephen Ellsworth and backed by investors including Rohan Oza and CAVU Consumer Partners, offers low-calorie sodas with prebiotics, fruit juice, and apple cider vinegar, containing no more than five grams of sugar per serving.
Ram Krishnan, CEO of PepsiCo Beverages U.S., noted Poppi’s unique blend of wellness and cultural appeal, praising the brand’s rapid growth and loyal customer base. Allison Ellsworth expressed excitement about partnering with PepsiCo to expand Poppi’s reach, reflecting on the brand’s journey from a homemade recipe to a nationally recognized product.
Rohan Oza acknowledged Poppi’s remarkable growth, attributing it to the founders’ vision and the brand’s strong community. The acquisition, subject to regulatory approval, will allow PepsiCo to further integrate Poppi into its portfolio.
PepsiCo, with a broad portfolio including Lay’s, Gatorade, and Pepsi-Cola, generated nearly $92 billion in net revenue in 2024. The company’s “pep+” strategy focuses on sustainability and positive impact. Poppi, based in Austin, Texas, offers 14 flavors of its prebiotic soda, catering to health-conscious consumers.
