PepsiCo to acquire Poppi – Food In CanadaFood In Canada

PepsiCo is set to acquire Poppi, a prebiotic soda brand, for $1.95 billion, including $300 million of anticipated cash tax benefits for a net purchase price of $1.65 billion.

“We’ve been evolving our food and beverage portfolio over many years, including by innovating with our brands in new spaces and through disciplined, strategic acquisitions that enable us to offer more positive choices to our consumers,” said Ramon Laguarta, chair and CEO of PepsiCo. “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.”

The soda brand, created by Allison and Stephen Ellsworth, combines prebiotics, fruit juice, and apple cider vinegar to create a low-calorie soda. It has less than 5g of sugar per serving.

“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,” said Ram Krishnan, CEO of PepsiCo Beverages U.S. “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.”

“When I created Poppi in our kitchen, it was fueled by a desire to create a better-for-you soda,” said Allison Ellsworth, co-founder of Poppi. “We never imagined how many people we could reach through hard work, determination and a clear mission to create a functional soda that stands the test of time.”

The transaction is subject to customary closing conditions, including regulatory approval.