PepsiCo has acquired popular prebiotic soda brand Poppi for nearly $2 billion. The deal comes as the traditional soda market continues to decline due to growing consumer demand for healthier alternatives.
Poppi, founded by Allison Ellsworth in 2015, has grown rapidly over the past few years, with profits reaching over $100 million in 2024 and a gross margin of 65%. The brand’s success can be attributed to its digital-first marketing strategy, which focuses on social media influencers and sustainable brand awareness.
PepsiCo’s acquisition of Poppi is part of the company’s efforts to adapt to the changing beverage market. Despite reporting negative net revenue performance in its latest earnings report, Pepsi remains committed to expanding its portfolio of healthier drink options.
The purchase price includes a $300 million cash tax benefit, with additional payments to be made if Poppi meets certain performance goals. The deal is pending regulatory approval and has not been publicly disclosed, except for the acquisition price.
Source: https://www.thestreet.com/lifestyle/food-drink/pepsi-to-buy-popular-alternative-brand-to-destroy-rival