Vending

PepsiCo to acquire prebiotic soda brand poppi for $1.95B

Photo: PepsiCo

March 18, 2025

PepsiCo, Inc. has come to a definitive agreement to acquire poppi, a fast-growing prebiotic soda brand, for $1.95 billion, according to a press release. The deal includes an anticipated $300 million in cash tax benefits, resulting in a net purchase price of $1.65 billion. The acquisition also features a potential earnout based on achieving specific performance milestones post-closing.

According to the press release, the acquisition aligns with PepsiCo's strategy to expand its health and wellness offerings. "More than ever, consumers are looking for convenient and great-tasting options that fit their lifestyles and respond to their growing interest in health and wellness. poppi is a great complement to our portfolio transformation efforts to meet these needs," Ramon Laguarta, chairman and CEO of PepsiCo, said in the release.

Poppi, founded by Allison and Stephen Ellsworth, is known for its low-calorie, low-sugar sodas that combine prebiotics, fruit juice and apple cider vinegar. The brand gained recognition after appearing on ABC's "Shark Tank" and receiving investment from Rohan Oza and CAVU Consumer Partners.

"As we look to reorient our portfolio offerings to address white space consumer needs, the poppi brand's unique intersection with wellness and culture is a perfect addition to our portfolio," Ram Krishnan, CEO, PepsiCo Beverages U.S., said in the release. "Allison and the poppi team have built a magnetic brand that's ahead of the trends, with a loyal consumer base and a demonstrated capacity for growth. We are big fans of the poppi brand movement and believe this incredible brand paired with our commercial capabilities will drive continued growth and innovation for years to come."

Allison Ellsworth, Co-Founder of poppi, also expressed enthusiasm for the acquisition. "We can't wait to begin this next chapter with PepsiCo to bring our soda to more people – and I know they will honor what makes poppi so special while supporting our next phase of growth and innovation. I hope our story inspires others to explore their passions, take the risk, and believe that anything is possible," Ellsworth said in the release.