- PepsiCo (PEP, Financial) completes acquisition of poppi for $1.95 billion.
- The acquisition includes a $300 million tax benefit, lowering the net purchase price to $1.65 billion.
- This acquisition supports PepsiCo’s strategic focus on wellness-oriented beverages to attract younger consumers.
PepsiCo, Inc. (PEP) has finalized the acquisition of poppi, a prebiotic soda brand, for a total of $1.95 billion. Accounting for $300 million in anticipated tax benefits, the net purchase price stands at $1.65 billion. The deal also incorporates a performance-based earnout provision, which is contingent upon the achievement of specified performance metrics.
poppi is recognized for producing low-calorie sodas that contain prebiotics, fruit juice, and apple cider vinegar, with each serving containing no more than 5 grams of sugar. This acquisition strengthens PepsiCo’s position in the expanding functional beverage sector, which is geared towards health-conscious consumers.
The acquisition aligns with PepsiCo's strategic goal to transform its portfolio towards modern wellness preferences. Previous acquisitions such as Siete and Sabra reflect similar strategic moves. poppi’s strong engagement with Gen Z and millennial demographics, achieved through dynamic social media strategies and influencer partnerships, is expected to enhance PepsiCo’s market position among these key consumer segments.
Ram Krishnan, CEO of PepsiCo Beverages US, noted the rapid growth and strong consumer engagement of poppi as key factors contributing to its appeal as a strategic addition to PepsiCo’s portfolio. Krishnan stated, “We are excited to scale poppi's momentum and unlock new growth through our capabilities – we're just getting started.”
