PepsiCo has announced that it is buying the prebiotic soda brand Poppi for nearly $2 billion. The popular brand first appeared on Shark Tank in 2018.
During their appearance on the show, they secured a deal that significantly boosted them and led to a rebrand, as it was formerly named Mother Beverage. Prebiotic sodas like Poppi and Ollipop have soared in popularity in recent years. They emerged at a time when soda consumption in the US was down and sparked a new trend for health-conscious consumers.
Pepsi’s offer comes after its rival, Coca-Cola, recently launched its own prebiotic soda brand, Simply Pop.
According to reports, Pepsi had plans to launch its own prebiotic soda under its Soulboost brand but abandoned the idea and made Poppi an offer instead.
Pepsi said it plans to acquire the brand for $1.95 billion. The deal includes $300 million of anticipated cash tax benefits, making the net purchase price $1.65 billion.
Poppi founders Allison and Stephen Ellsworth created the soda from their kitchen in Dallas, Texas. The formula includes apple cider vinegar, prebiotics, and just five grams of sugar.
The company has aired two Super Bowl commercials in the past two years, with this year's featuring influencer Alix Earle. The TikTok star is also an investor in Poppi.
The Poppi website includes Post Malone, Hailey Bieber, Kylie Jenner, Billie Eilish, Russell Westbrook, JLo, and Olivia Munn as some of their celebrity customers.
Recently, Poppi has attracted backlash for its health claims. They faced a class-action lawsuit that claimed Poppi soda wasn't as healthy as its packaging claimed. Poppi and the plaintiff moved to settle the suit for $8.9 million, according to court filings.
Poppi’s lead rival, Ollipop, which is valued at a similar number, said that PepsiCo and Coca-Cola have both inquired about purchasing the brand.
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