PepsiCo to buy Poppi in $1.95B deal: What it signals about M&A

00:00 Speaker A

Pepsico is acceptable to get prebiotic soda marque Poppi successful a woody valued astatine $1.95 billion. Pepsico anticipating $300 cardinal of currency taxation benefits, bringing the nett woody to $1.6 billion. And Poppi is simply a debased sweetener soda that incorporates pome cider vinegar was launched successful 2018 and featured connected Shark Tank. More recently, the marque had an advertisement during the 2025 Super Bowl. You tin spot present shares of Pepsi up astir 2% here, but absorbing to spot them taking a Poppi here. You tin spot this is simply a precise nonstop to user brand, tons of large influencers, the likes of Alex Earl, you tin spot here. They've been sending vending machines afloat of Poppi to influencers houses to summation marque awareness. Uh and I deliberation this is astute of Pepsi to get a imaginable rival successful the space, particularly fixed the wellness question of younger soda drinkers here. But I wanted to speech to you excessively conscionable astir what this signals to america astir woody making, which we haven't truly been seeing arsenic overmuch of arsenic I thought we would spot pursuing the predetermination of Trump.

01:47 Speaker B

Yeah, bully point.

01:48 Speaker A

Yeah, I would agree. Um I would person expected a larger pickup successful M&A. Maybe portion of the contented is rates are inactive comparatively high. Look, if I retrieve my archetypal owe um was astir 7 and an eighth and erstwhile I refinanced astatine 5 and 7 eighths, I thought I was the king. And and present each of a sudden, everyone is is conscionable lamenting the information that oh, I can't get a 3% owe anymore. So it's it's it's, you know, what we've grown accustomed to. But just enough, implicit the past 15 years, we've gotten accustomed to wealth that was astir apt acold excessively cheap. It should rates should ne'er person gotten arsenic inexpensive arsenic they did, but they did, we got utilized to it. And uh we're inactive utilized to it. And truthful that whitethorn beryllium 1 crushed wherefore woody enactment is little due to the fact that um financing costs are conscionable higher.

03:27 Speaker B

Right. Right. Right. Yeah.

04:00 Speaker A

Yeah.

04:01 Speaker B

Um I deliberation that's going to correct. I besides deliberation rates volition commencement to travel down a small bit, not a ton, but they don't request to. But uh they'll commencement to travel down a small spot that'll stimulate housing. That whitethorn inactive stimulate uh immoderate woody activity. What's besides fascinating is that M&A, yes, arsenic we're talking astir is low, but truthful excessively are IPOs.

04:58 Speaker A

Right. Yeah.

05:00 Speaker B

So the superior markets um haven't truly percolated successful the mode that um up until 3 weeks ago, the banal marketplace has percolated. I expect that to change. Um I expect that we're going to spot a pickup successful enactment arsenic we get implicit this interest astir recession. We're not having recession. As we get implicit the uh interest astir um tariffs, um they're a bargaining chip. They're not needfully a means nether themselves. And we've already seen immoderate indications that they mightiness backmost disconnected a small bit. Fine. So C suite executives similar to spot clarity and I deliberation they'll get much clarity arsenic we get into this year. But yeah, to get backmost to your archetypal question, americium I amazed that we haven't seen the pickup successful uh M&A activity? Yeah, I'm surprised. I bash deliberation it's coming though.