PepsiCo to buy prebiotic brand Poppi for nearly $2 billion deal

Reuters

Mon, Mar 17, 2025, 5:44 AM 1 min read

(Reuters) -PepsiCo said connected Monday it would bargain prebiotic soda marque Poppi for $1.95 billion, expanding successful the "healthier soda" class astatine a clip erstwhile the institution is battling falling request for its accepted beverages and snacks.

Young Americans are progressively turning to healthier sodas and vigor drinks arsenic portion of a broader displacement to fittingness and manner products, with rival Coca-Cola expanding its Simply marque to motorboat a prebiotic soda called "Simply Pop".

Peers specified arsenic Celsius Holdings and Keurig Dr Pepper person besides snapped up smaller vigor and wellness portion makers to physique retired and grow successful the fast-expanding market.

PepsiCo has been struggling to boost request for its sodas and snacks arsenic customers moved to cheaper backstage labels aft respective terms hikes.

Meanwhile, prebiotic sodas person go a top-growing class successful the U.S. wrong the carbonated drinks segment, powered by a displacement successful penchant to much wellness and wellness drinks focused connected gut health.

Poppi combines prebiotics, effect juice, and pome cider vinegar to make a low-calorie soda with nary much than 5 grams of sweetener per serving, PepsiCo said.

The Austin, Texas-based company's retail income jumped 122%, year-over-year, successful the 12-weeks done February 22 and present holds astir a 1% stock of the full carbonated brushed drinks category, according to BNP Paribas.

Poppi was founded by Stephen and Allison Ellsworth.

The woody includes $300 cardinal of anticipated currency taxation benefits for a nett acquisition terms of $1.65 billion, the institution said, without disclosing further presumption of the deal.

(Reporting by Ananya Mariam Rajesh successful Bengaluru; Editing by Sriraj Kalluvila)